When trying to collect a debt from a consumer, it’s important to play by the rules. This means following the regulations outlined by the Fair Debt Collection Practices Act.
The main goal for debt collectors is to get the money owed. However, if you use some of these banned or illegal efforts, it can hurt your ability ever to recover the debt. Some mistakes to avoid when working to collect a debt can be found here.
Threaten the debtor
You must never threaten a debtor. You can’t make any type of threat, such as jail or be arrested, to try and collect a debt. Not only is this not allowed, but it also isn’t true. While you may be frustrated and feel like you need to “push” the debtor into compliance, make sure not to threaten them in any way.
To collect a debt that is owed, you may falsely represent who you are or who you represent. This is another mistake that may backfire. Be honest and upfront with the debtor rather than making false claims about who you are or who you work for.
Harass a debtor
There are specific regulations about when you can contact debtors. If you call beyond those hours or stipulations, it is often considered harassment. You should avoid other types of harassment, including profane language, calling repeatedly or threatening harm or violence.
Following the rules for debt collection
As a creditor, you have the right to try to collect the debt you are owed. However, debtors have rights too. Because of this, you want to make sure you are following the rules and using the legal options you have when possible. This is going to help you achieve the desired outcome.