First Capitol Collections – The FTC’s Debt Collection Agency
Debt collection is taking unpaid payments from people or companies. An agency that specializes in collecting unpaid debts is called a debt collector or debt collection agency. The most familiar type of debt collection practices is the collection of outstanding debts by banks and other financial institutions. Most credit card users have contracts with their credit card companies, whereby they agree to pay a specified amount of interest and fees each month in exchange for a stated number of credit card points. When the user fails to pay the minimum amount of payment, the credit card company usually files a complaint against the user in order to recover the interest due from the delinquent account holder. Visit our website to get free information about First Capitol Collections
Collection agencies are generally permitted by the Fair Debt Collection Practices Act, to engage in some of the following practices: using an automated system to collect payment; utilizing a non-standard means of collection such as intimidation, harassment or threats; keeping records of delinquent accounts for a year or more; and retaining the privacy of the account holder except in very limited circumstances. Most debt collectors will also be required to inform clients of their rights under the FDCPA, and to provide documented evidence of their performance of these rights. This evidence typically includes bank statements, charge offs and other financial information demonstrating a pattern of bill payment. Debtors are generally advised that if they fail to pay the debt within the specified time period, or fail to respond to communications from the debt collection agency, legal action may be taken.
However, the FDCPA does not prevent debt collectors from engaging in illegal practices, such as harassment or threatening behavior. It only prevents debt collectors from engaging in conduct that is deemed abusive, deceptive or dishonest. As a result of this provision of the FDCPA, many states have passed legislation that criminalizes some of these activities. In addition, the federal trade commission has recently drafted legislation that would reform the FDCPA, making it more effective and eliminating some of its weaknesses.