• June 22, 2024
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Navigating the Complex World of Debt Recovery: Top 7 FAQs on Debt Collection Agencies

Navigating the Complex World of Debt Recovery: Top 7 FAQs on Debt Collection Agencies

Debt collectors- the phrase strikes a note of terror and creates a sense of discomfort for many! But why is that so? Well, the stigma related to the fraternity of debt collection agencies has a major role to play. Not only that, but people’s ignorance have also had a fair share of contribution to this fear.

This blog deals with the 7 most common FAQs about debt collection services. This will help clear stigmas about debt collection agencies, and will let you know what they can or cannot do.

Quick Note: Before you proceed, it’s essential to know that debt collection agencies are bound by the statute of limitations set by the Federal Debt Collection Practices Act (FDCPA) to not make use of any aggressive or unfair collection practices. So, if you’re the victim of any such harassment, you may lodge a complaint to the Federal Trade Commission, or the state attorney general’s office.

That being said, let’s move on and take a look at the 10 most Googled questions about debt collection agencies!

7 Most Searched Queries About Debt Collection Agencies

  1. Can Debt Collectors Contact My Employer?

The statute of limitations stated by Fair Debt Collection Practices Act (FDCPA) deters debt collection agencies from contacting your employer unless you give them permission to! They are only liable to share this sensitive information with your spouse.

However, if you see a debt collection agency crossing this threshold without seeking your permission, you can file complaint against such organizations for violation of the FDCPA regulations.

  1. What Categories Of Debts Does The FDCPA Cover?

If you’re dealing with business-related debts, it’s outside the jurisdiction of the FDCPA!

However, FDCPA can hold you accountable for categories like debts related to households, any kind of mortgage, student loans, car loans, credit card bills, etc.

 

  1. How Long Can A Debt Collector Come After Me?

Although the statute of limitation for most debts depends on state-specific laws, business collection agency services in Houston can pursue a debt recovery for four years from your last payment date!

However, there are limitations! If the period for the statute (4 years) has expired, the colletion agency cannot legally take action against you for the repayment. But, they can continue pursuing this through phone calls and letters.

  1. Can They Contact Me At Any Time Or Place?

No, they can’t! The FDCPA has strict regulations on how and when business debt collection agencies in Houston are allowed to establish contacts with you. Following are some of the regulations that you need to know-

  • They cannot contact you after business hours (8 A.M to 9 P.M) until you have permitted them to!
  • They cannot contact you at your workplace unless you’ve instructed them to.
  • They also cannot call you more than seven times in seven days. Moreover, they also cannot contact you within a week after discussing a particular debt over the call.
  1. What If I Don’t Recognize The Debt?

Supposedly, you’ve discussed with a debt collection service in Houston, like Nelson, Cooper & Ortiz, LLC and cannot recognize your debts! It might be because you don’t owe those debts, or you might already have paid them off.

If this situation arises, you need to send a formal letter of dispute to the debt collector. The letter would say that you don’t own the debt that they are informing you about. Other than this, you can even ask them to verify whether or not you owe that debt at all. However, keep in mind to send this letter within a month, else the agency may think the debt to be legitimate.

  1. How Can I Verify That I’m Not Being Scammed?

Scams are very common in the field of debt collection. So, you must be aware of it and choose not to fall for them to save yourself from financial loss.

Here are a few ways you can spot a scammer-

  • They’ll put pressure on you to pay off your debts ASAP.
  • They’ll try to prove a debt amount that you don’t recognize or owe.
  • They’ll be reluctant to share their contact information.
  • They’ll persuade you to pay through non-reversible payment options like prepaid card, or instant money transfer.
  1. Can I Come To A Negotiation With The Debt Collection Agency?

Yes, you certainly can! During your discussion sessions with commercial collection agencies in Houston, admit to your financial challenges in a straightforward manner.

You’ll be quite surprised to see that debt collection agencies offer far more room for negotiation, than the creditors! So, opt to talk about your situation freely, and see what options they present you with.

To Conclude

Age-old stigmas and lack of knowledge have made debt collection a sheer oblivious region for most common people. If you happen to be a part of them, do read this blog to stay informed about the most-searched questions on debt collection agencies and know how things actually work.

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