How to Avoid Collection Agencies

A Collection Agency is an entity that works on behalf of a creditor to recover unpaid debts. They are paid a percentage of the total amount of the debt that the original creditor owes. They must follow the laws regarding statute of limitations, so they can continue to contact you even after the statute of limitation has passed. It is advisable to send all correspondence with a Collection Agency in writing, preferably via certified mail return receipt or regular postal service. Make copies of all correspondence and keep them for your own records.

You should know that there are two types of collection agencies. First-party agencies are the subsidiaries and departments of the original creditor. They may specialize in certain types of debts, such as debts that are less than $200 or are more than two years old. Reputable collection agencies generally limit their work to debts that are within the statute of limitations, which is a specific period in which a creditor has the right to legally pursue a debt. The creditor pays a collection agency twenty-five to fifty percent of the total amount they collect from the debtor.

A Collection Agency may contact you if you fail to pay your debt on time. You should avoid answering the phone or responding to texts about your debt. You should only answer the telephone when a Collection Agency calls. Otherwise, it’s time to stop responding to their calls. The only way to prevent this from happening is to refuse to answer any calls or send letters. The best way to avoid these telemarketers is to stay away from them altogether. Click here for more information about collection agency information.

When hiring a Collection Agency, you should know the law and the rights of the debtor. The law requires that a Collection Agency disclose its identity and the purpose of the collection. You can also ask a Collection Agency to keep your debt confidential. They are not allowed to threaten you, use profanity or publicize your situation. A good choice is to hire a Collection Agency that is a member of ACA International. This ensures your protection as a consumer.

If you are unsure about your rights when dealing with a Collection Agency, you should check the FTC’s website. It is important to remember that the FTC’s website is not the only organization that regulates debt collection agencies. Its job is to help you understand these laws. The best way to protect yourself from scams is to avoid paying bills and not making payments. You should also be aware of your legal obligations as a debtor.

Some Collection Agencies do not communicate with you about your debt. They only contact you to find out where you work and where you live, and they do not mention your debt. It is illegal for a Collection Agency to contact you more than once unless you request it. It is important to note that a debt collector cannot speak about your debt to friends or family members without your permission. It may also be illegal to tell them your debtor’s name, so it is important to be aware of any possible consequences.

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