Debt Collection Laws - United States

Every state has its own set of rules about collection agencies. Some are required to be bonded and licensed, while others may not. When dealing with a collection agency, you'll need to know the laws for the collection agency in their state. This collection agency list can benefit you in many ways. 

1.) See if they have to be licensed and bonded

If they are required to be bonded and or licensed and are not, you can use that information as leverage in disputing a collection account. If the collection agency has not met licensing and bonding requirements for their state, then you can use that to dispute their right to collect the debt. 

2.) Registered Agents

Suppose you are negotiating a collection account or disputing their right to report it to your credit reports. In that case, knowing how to contact the registered agent of the collection agency is critical. You don't want to send a cease and desist letter or a notice of the dispute to just an employee who may not even acknowledge it.

A registered agent is the person responsible for representing the agency (Board and Officers) and is the one you'll want to send any communications to. By looking up the registered agent of a collection agency, you can quickly get the contact information of the person in charge of the entire agency.  You can visit http://www.residentagentinfo.com/ to find your state's registered agent information.

3.) Collection laws

Besides finding out if a collection agency requires licensing, you can determine the collection laws for that state. By looking up a collection agency, you can determine the legal interest rates, the statute of limitations for collecting the debt, and bad check laws for the state. 

Collection laws operate in two ways; State and Federal. Our federal government offers broad rules like the FCRA and FDCPA, but a state law may offer more specific protection. Any time a state law offers more protection for you, then it will trump federal law.  This is extremely important because your state's FDCPA and FCRA may protect you more than the federal. It's a good idea to review both state and federal and compare protection. You can read the federal FDCPA and FCRA through the FTC's website.

What is the Statute of Limitations for debt collection in the United States?

The statute of limitation is the amount of time that a creditor has to sue a debtor for payment of a debt. Debtors do not have to worry about an old debt as long as they pay it off before the statute of limitations expires. The statute of limitations for debt collection in the United States varies from state to state, but it is usually between 3 and 10 years.

What is the Fair Debt Collection Practices Act?

The FDCPA is a federal law that protects consumers from unfair and deceptive debt collection practices.

The FDCPA was created to protect consumers from unfair and deceptive debt collection practices. The Act applies to third-party debt collectors, not the original creditor. Third-party debt collectors are defined as any individual or company that collects debts for other creditors or companies.

The FDCPA protects consumer privacy by restricting what information a third-party collector can request about the consumer. It also prohibits third-party collectors from using false, misleading, or harassing language when communicating with consumers about their debts to collect payment on behalf of another party.

What are some tips to protect yourself from debt collectors trying to collect expired debts?

Debt collectors are not allowed to call you before 8 a.m. or after 9 p.m. unless they have your permission. Debt collectors can't threaten to take your property or contact you at work if they don't have written permission from you to do so.

Debt collectors can't call you repeatedly with the intent of annoying, harassing, or abusing you, your family, or anyone else living in your home.

Fair Debt Collection Laws

The United States has a number of laws that regulate the practice of debt collection. The Fair Debt Collection Practices Act is one such law that prohibits debt collectors from using abusive, deceptive, or unfair practices to collect debts.

Debt collectors are prohibited from using any false, deceptive, or misleading representation or means in connection with the collection of any debt. They are also prohibited from calling at any time outside 8am-9pm local time. Debt collectors are also required to notify the consumer in writing within five days after the initial communication with them if they intend to use a collection agency and/or attorney for collecting on the debt.