Debt Collection Agencies Must Follow the Law

The financial calamity of 2008 and the recession it produced took its toll on business and consumers across America. Personal and business bankruptcies have been a common thread to the weak recovery since the near-fatal economic collapse, and many people still struggle with high debt loads and unrealistic repayment schedules.

Conditions such as have existed for most of the past four years have led to a boom in collections, but also a great deal of abuse by banks, phony credit counseling agencies and the collections firms themselves. Mostly innocent consumers have been berated by phone calls, threatening letters and outlandish demands from unscrupulous operators seeking to capitalize on the misfortune of others.

Fortunately, there are strict laws in almost every state and federal statutes that prohibit many of these bad practices, such as threats of job loss, excessive phone calls at unusual hours and other abhorrent behavior. while the majority of collection firms abide by the laws, there are shady operators who skirt the boundaries and make life miserable for many.

In the Golden State, where the calamity of mortgage debt, job scarcity and personal indebtedness have created a perfect storm for collection agencies, there are many law firms and counseling centers which help stop collection harassment California through advocacy, letter writing and legal tactics that often bring the violators to justice.

Proper procedures must be followed by the collection companies, and they are enumerated by a strong set of laws throughout the country which can help stop collection harassment for good. Collectors, for instance, are prohibited from threatening or harassing consumers. The proper and prohibited procedures are spelled out in simple language in the Fair Debt Collections Practices Act (FDCPA), which gives power back to the people instead of in the hands of the banks and collections agencies.

Having excessive debt isn't always one's own fault, nor is the inability to make timely payments. Fortunately, there are laws which protect consumers and good-hearted companies and lawyers that can help make dealing with debt collectors a little less daunting and in line with the law.