Policies & Procedures for Credit Collection
- Bill collectors cannot legally call consumers outside of the hours of 8 a.m. to 9 p.m. in the customer's time zone. The only exception is if the consumer requests calls at different hours due to unusual work schedules. When making calls, collections representatives cannot discuss the account with other parties unless the debtor gives permission. If the consumer demands that debt collectors not call them at work or he sends a letter requesting that credit collection calls stop, the bill collectors must comply.
- Debt collection representatives can send letters to consumers but must not indicate on the outside of the envelope that the correspondence regards an overdue bill. Also, they cannot legally communicate with debtors via postcard. All letters must include the name of the debt collection firm, the name of the original creditor and the amount of money owed. It also must disclose that the customer has the legal right to demand proof of the debt or dispute the account.
- Bill collectors cannot use abusive language when communicating with debtors, warns the Fair Debt Collection Practices Act. Nor can they make threats, such as lawsuits, that they do not intend to keep. Credit collection representatives also cannot cash postdated payments before the date agreed and must report the account as paid rather than unpaid to the credit bureaus.
- A consumer can demand debt validation if they believe the collection notice is inaccurate. At this time, the collection agency cannot legally report the debt to the credit bureaus unless it has already done so. If such negative reports were already issued, the debt collector must inform the credit bureaus that the account is disputed by the consumer. Debts that cannot be proved or resulted from identity theft must be permanently removed from credit records. If the original debt was incurred at least seven years ago, debt collectors can still pursue payment but cannot legally report it to the credit bureaus. If the debt was included in any type of personal bankruptcy, it is permanently uncollectible.
