debt collections

#money #finance #debt #debtcollection - Debt Collection Agency

The Federal Trade Commission is the primary federal regulator of collection agencies, although the Bureau of Consumer Financial Protection—created in 2010 and housed within the Federal Reserve—will also have regulatory power over collection agencies. Many States and a few cities require debt collection agencies be licensed and/or bonded. In addition, many States have laws regulating debt collection, to which debt collection agencies must adhere (see Fair debt collection).

 

The Fair Debt Collection Practices Act is the primary federal law governing debt collection practices. The FDCPA allows aggrieved consumers to file private lawsuits against a collection agency that violates the Act. Alternatively, the Federal Trade Commission or the state attorney general may take action against a noncompliant debt collection agency, including issuing fines, ordering damages, restricting its operations or even closing it down (see, e.g. CAMCO).

 

The FDCPA specifies that if a state law is more restrictive than the federal law, the state law will supersede the federal portion of the act. Thus, the more restrictive state laws will apply to any agency that is located in that state or makes calls to debtors inside such a state.

 

In addition to state and federal laws, a majority of U.S. debt collection agencies belong to trade group ACA International and agree to abide by the association’s code of ethics as a condition of membership. ACA’s standards of conduct require its members to treat consumers with dignity and respect, and to appoint an officer with sufficient authority to handle consumer complaints. Consumers may also resolve disputes brought against a debt collection agency who is a member of ACA through ACA’s consumer complaint resolution program.

 

Article Source:  en.wikipedia.org

 

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