Combating A Credit Management Collection Agency's False Claims

In most cases a credit management collection agency will follow the law regarding debt collection; furthermore, the collection agency is simply trying to recover a debt that is owed to a client customer. However, there are times when some unscrupulous collection agencies will use tactics that are unethical and perhaps even illegal when attempting to collect a debt. In fact, collection companies have been known to make many false claims regarding possible consequences if a customer is not is not able to pay are unwilling to pay a debt.

Common False Claims

Some unethical collectors will attempt to collect the debt at any cost. Collection agencies are normally paid based on their results and their ability to collect debts; in fact, many are paid a percentage of the debt that is collected. Furthermore, individual debt collectors are usually paid based on performance, and often need to meet strict quotas for collection amounts and the number of bad debts collected. So, it is easy to see how some unethical collectors would be motivated to stretch the truth and make false claims to people that are in debt.

Most of the time, people that are behind on their bills are genuinely sorry and simply don't know what to do; therefore, the unscrupulous collector takes advantage of the situation. Collectors have been known to tell consumers that they can be put in jail, easily sued or have their home or car confiscated if the debt is not quickly paid. Some collectors even go as far as to say that they can report their bad payment history to the consumer's employer and it may cause them to be fired or discharged from their job. These types of claims are simply not true and are simply not unethical but highly illegal.

Consumer Protection Against Collection Agencies

The Fair Credit Reporting Act, or the FCRA, was enacted by Congress to provide protection for consumers against unfair collection methods and practices. The act provides for numerous requirements and procedures for collecting a debt as well as remedies for consumers whose rights have been violated. Therefore, you should always be aware that you have a process with which to fight back.

If you're ever contacted by a collection agency and they make wild claims about the remedies that they can seek to harm you or frighten you, simply tell them that you're aware of your rights under the FCRA and will report them if they continue. In fact, write the collection agency a letter and tell them not to call you at all or not to call your employer or relatives. Demand that they contact you in writing and let them know that you will report any violations immediately or that you may even file a civil law suit against them.

Most of the time, simply making the collection agency aware that you know your rights will cause them to cease many of their underhanded practices and you will generally notice a quick change in the demeanor of the collector. Therefore, you should research all of your rights under the federal Fair Credit Reporting Act and use them to protect yourself.




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