Debt Collection Laws:
Careful Considerations
For Every Business
 Understanding the debt collection laws regarding collection and recovery of debt will enable you to make legal contact with the debtor and will allow you the best opportunity to collect on the debt owed to you. As a small business, finding the way to get funds paid to you is the goal. Yet, the law may seem to get in the way sometimes. Do you know what you can and can't do when trying to collect on a debt? Our debt recovery information, resources, and education can help guide you in the right direction.
Contacting Your DebtorsDebtors are protected by the Fair Debt Collection Practices Act, or FDCPA, which prohibits any form of abuse on the behalf of the creditor looking to collect on the debt. This doesn't mean you can't collect the debt, only that you must follow specific rules when doing so. For example, you may not contact a person owing you money before 8 am or after 9 pm. You should not contact them at work, but if you do, and they ask you not to do so again, you must abide by this rule. Read more recent FTC proposals to the Fair Debt Collection Act,
and how they affect both consumers and debt collection agencies. Collection agencies are also taking more proactive measures to address abusive industry practices and operate within the federal debt collection law. Also, learn about recent amendments to The Fair Debt Collection Act, enacted in The Fair and Accurate Credit Transactions Act, or FACTA, and how it relates to consumer access to their credit information and protections from identity theft. Learn about The Fair Credit Reporting Act and its requirement that business owners report accurate debtor information to the credit bureaus. Read about The Gramm-Leach-Bliley Act and how it affects your business regarding the handling of customers' private and confidential information. Read the latest industry news, updated daily about debt collection laws. Other debt collection laws you should know about include: - You may contact a third person but only to inquire about the best way to reach the debtor, and usually only one time
- If the debtor believes they don't owe you money, you must provide them with a letter documenting what they owe, how they should pay it and how to correct the situation, within 30 days of the request
- You may not falsely imply that you have attorneys working for you, or that any government agent is working on your behalf
- You cannot tell the consumer they will be arrested if they don't pay the debt
- Only authentic information can be given about the debt, and the creditor must give their real name during conversations when asked for it
What You Can DoUnderstanding the full extent of the small business collections is important. As a creditor you should take the time to thoroughly understand them. When you find you do need extra help, hiring a third party debt collector is often the best route to take. They will work with you and the debtor to get the debt settled and to get the best results possible. You have rights, too and these professionals understand them well. To learn about your options for debt collections, ask questions about debt collection laws, and to obtain guidance on the best approach to take with your specific debtor(s), please contact us for a free initial evaluation of your circumstances. Our extensive debt collection experience and expertise can help you discover the fastest and most effective debt recovery method for your specific situation. 
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