Some companies perform tasks for both the claims, they offer services for Consumers as well as retail claims. But so far it’s seen that creditors usually choose the agencies which specialise in only one of the claims as it’ll show that they’ll be focused on the only claim, which at times can give the creditor a confident and trustworthy vibe from them.
Debt Collection Agency’s Laws with Answers to your basic Questions
Debt collection is a process where a creditor is given back his money from the debtor through a third party. The firm which does the aforesaid action is called Debt Collection Agency.
An agency that will send one of its seniors to the households and firms with 10-20 well-built bodyguards to collect money, that’s what you thought when you heard the name in the title? Well, you are not entirely Correct.
Debt collection agencies do have their ways for collection of the money that too within a particular period. They are also given the important authorities which are required throughout the process, but that doesn’t mean they can have their way with the debtor.
Laws for Debt Collection Agencies
Firstly, it’s sad to mention that there are no International rules and regulations or acts currently present, even though the business Is doing well in the market, The head of the international authorities Haven’t led a keen eye on this industry yet and thus no global acts are passed on.
So What are the limitations on which debt collectors work and from where it’s put up?
Limitations such as no violence, no threats, no invasion of privacy, no late-night calls, no disturbance at weekends and such are put up by the legislative office, to keep in simple words, every country has its own rules and regulations for debt collection, and if international agencies are said to collect it from these countries then they have to follow the mentioned rules of that specific country at any cost.
Answers to basic Questions on your Mind
- Can a debt collector contact me personally? If yes then how? And can they contact me anytime or place?
A debt collector can contact you personally if they have been passed the authority from the creditor itself.
They can contact you through communication means such as e-mails, Messages or direct calls.
No, they are precisely not allowed to contact you in any way before 8 in the morning and after 9 in the night. However, if you allow them to contact you other times according to your schedule, then they can reach out to you without any problem at that hour.
- What if I don’t owe the debt?
At times of fraud or High misunderstandings, a scene can take place when you are contacted for someone’s else’s debt. In situations like these, you can simply approach the debt collector and ask them for verifying the information they have been given by the creditor.
- If the issue drops in the hands of Debt collectors, will my name jump in society? Will my relatives and friends know about the issue?
No, even though debt collectors are allowed to contact your relatives and friends in some cases when you are not ready to respond or pay the debt, they still have limitations as to what they can ask and how many times they can disturb them.
Debt collectors are not allowed to discuss the issue with the debtor’s family and friends themselves, they are prohibited from disclosing the matter in front of them and talking about the same. Only you and your spouse can be contacted by the Collectors. As long as you keep quiet along with your surrounding people, your name will stay hidden and no one In the society would talk about it.