Third-party debt collectors often try everything in their power to get debtors to pay their bills. The original creditors weren’t successful, but the experience of third parties is sometimes met with success.
All third-party debt collectors must ensure they abide by the terms of the Fair Debt Collection Practices Act (FDCPA), which restricts debt collectors from being able to use certain tactics. Risk management can be beneficial for parties who are attempting to collect a debt.
Specific requirements of the FDCPA
There are a few very specific requirements that are set in this act. Some of the key points include:
- Collectors can only contact debtors from 8 a.m. to 9 p.m.
- Excessive or repeated calls may constitute harassment
- Contact at work can’t occur if the creditor knows the employer doesn’t allow it
- Consumers can ask for verification of the debt
- Creditors can’t lie, make misleading statements or threaten legal action that’s not permitted or intended
- A written notice with amount owed, creditor and written dispute method must be sent within five days of initial contact
It’s critical that these are followed without fail in every collection attempt that’s made.
Protocol must be clearly established
It’s up to collection agencies to ensure they set proper protocol. This can be done through the use of role-playing scenarios and pointed scripts. Collection agents shouldn’t be free to speak to debtors until they show that they can successfully comply with the requirements that are set by the FDCPA and company policies.
As creditors are contacting debtors, they should maintain clear records of the communications. This includes the method of contact, dates, times and content of the contact. If a dispute arises, this documentation can be valuable.
Ensuring FDCPA compliance is critical, not only to avoid fines but also to provide ethical debt collection services. This can help to maintain trust and preserve the company’s reputation. Working with someone familiar with these matters may be beneficial for anyone in this position.