Essay on Fair Debt Collection

3209 Words Jul 7th, 2011 13 Pages
This paper explains the federal Fair Debt Collection Practices Act (FDCPA) and other laws that apply to debt collectors. This paper will provide information about how to stop calls from collectors and how to correspond with them about your account or to dispute a collection action. This paper also explain one’s right to privacy, and how debt collection efforts may affect your job, your credit report, even information in your medical files. This paper will also reflect from the business owner’s aspect and how debt collection agencies can affect their business, especially if the collection agency is not following the law as they should.

Why are you being contacted by a collection agency? It usually means that a creditor has not received
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Whether a product is delivered with the agreement to pay upon receipt or an individual is issued tens of thousands of dollars in unsecured credit card cash advances, the lender is entitled to being paid back. Every business owner knows the risks involved when they start selling their products or services on credit. Those customers may not intentionally set out to delay paying you, but if you are not careful, you could end up with a rather huge list of accounts receivables. And if those accounts receivables are not paid in a timely fashion, it can play havoc with a business owner’s budget and your cash flow projections. Clearly, there are instances when the lender is not receiving the payments they are due. There can be several reasons for this. Sometimes, the borrower may be experiencing financial difficulties and needs more time to pay their debt. However, at other times, they may simply be irresponsible about paying their debt and they default. Whatever the reason, the lender is fully within their rights to seek and expect payment. Short of saying “cash only” to their customers, what can a business owner legally do to collect debts that are owed to them? How many reminders and late notices can you send out before you find yourself violating the law?

This is where collections agencies come into play. Their goal is to acquire the payment due their clients. However, they may not take a Wild

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