Fair debt collection act helps in preventing illegal collection of debts

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<h1>Fair debt collection act helps in preventing illegal collection of debts</h1><strong> Author: <a href='http://www.articleseen.com/profile_safinajones.aspx'>safinajones</a></strong><br /><p>It is a very common case that many people do not pay back their loans on time thus becoming loan defaulters. The company from which the loan is sought sends messages and warnings to the defaulter over a period of time asking him to make the loan repayments at the earliest. When the defaulter does not pay heed to the legal notices and warnings, the lender company contacts a debt collection agency or an independent debt collector. But a debt collector cannot just go and ask for the money from the defaulter. He needs to follow some rules and regulations according to the Fair Debt Collection Act or according to the Debt Collection Laws. Therefore any good and genuine debt collector will definitely be aware of the Debt Collection Laws or about the Fair Debt Collection Act and follow them. There are many clauses to the Debt Collection Laws and the Fair Debt Collection Act. Infact if a consumer feels that he/she is being harassed unnecessarily by the debt collector, he/she can make a complaint against the debt collection agency or the debt collector individually. In severe cases, the license of the debt collector can be ceased and he cannot practice any more. According to the Debt Collection Laws and the Fair Debt Collection Act, there are many restrictions and prohibitions on the debt collectors. Some of them are as follows: A debt collector, who follows the Fair Debt Collection Act, will refrain from using slang, profane and obscene language with the consumer. He can use a strict tone in the voice but cannot abuse the consumer in any way. As per Debt Collection Laws, the debt collector cannot use any medium to harm the consumer. He also cannot opt for violence again the consumer. The debt collector cannot harass the consumer by making incessant phone calls or by visiting the consumer’s home and office at frequent intervals. A genuine debt collector who is aware of the Debt Collection Laws cannot make misleading and false statements while he is on duty to collect the outstanding debt from the defaulter consumer. Most importantly, as per the Fair Debt Collection Act, a debt collector cannot furnish false credit information in the name of the defaulter consumer. He also cannot collect more amount than the amount of debt from the consumer. The debt collector cannot use a false name or identity with the consumer. </p><strong>About the Author:</strong><br /> Safina Jones is a legal advisor who has good information on <a rel="nofollow" href="http://www.consumerlawfirmcenter.com/FdcpaInfo.php?id=46">Fair Debt Collection Act</a> and <a rel="nofollow" href="http://www.consumerlawfirmcenter.com/">Debt Collection La<p> Article Source: <a href='http://www.articleseen.com/Article_Fair-debt-collection-act-helps-in-preventing-illegal-collection-of-debts_102552.aspx'> http://www.articleseen.com/Article_Fair debt collection act helps in preventing illegal collection of debts_102552.aspx</a></p>

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Keywords : Fair Debt Collection Act, Debt Collection Laws,

Category : Business : Business