5 important debt collection laws you must know

If you have huge debt and you are not able to pay it then your creditors will pass on your accounts details to the  debt collection agencies to harass you and to collect the money from you. The main purpose of these debt collection agencies is to collect the unpaid debt from the persons who are not paying it and for the the bank give them commision on the payments.

The debt collection agencies will try their best to collect money from you and for this they will use lot of loopholes  because they know the fact that most of the people don't know about these debt collection laws. So if you will get to know about these laws then they will not be able to go beyond the law .

Important debt collection laws : -

1. Harassment : Debt collection agencies are not authorize to harass persons when they are collecting  debts and if they do so you can take legal action on them. They are also not allowed for any kind of noise or violence activity and they can't threaten to file legal case against you or confiscate your home.

2. Calling at inappropriate time : They are not allowed to call you at inappropriate time . According to the law the debt collectors are bound to call you in between 8. a.m to 9.00 p.m . Must must need to keep this in mind because its most important collection law.

3. False claims : Debt collection are not authorize to do false claims on you regarding you unpaid debt. They are not authorized to say that " you have done an criminal offence and they can take legal action against you " . They can't  misguide you by represent themselfves as a government employee.

4. Divulge information : The debt collection agency is not authorize you share your personal information to any other third party apart from your lawyer , gurdian , spouse etc

5. Debt validation letter : After initial communication of 5 days the collector ought to send you debt validation letter . In the validation letter they have to mention the total debt amount of yours and the name of your creditor.

If you collectors violate these laws then you can file case against them and if you win the case , the debt collection agency will need to pay you the damages or the judge may also order them to pay you an amount more then your damages .


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