Credit Collection Agency General Information And The FDCPA

Who needs a credit collection agency?

Hiring the help of credit collection agency is often one of the last steps a company can take to recover debt from consumers. In a credit driven society, some consumers may experience trouble repaying debts they agreed to pay back. After a company's own collections efforts have failed to recover the debt, they may hire a third party credit collection agency to contact the consumer on their behalf to collect the outstanding debt.

How is a credit collection agency regulated?

A credit collection agency is regulated by the Fair Debt Collection Practices Act, or the FDCPA. The FDCPA was enacted in 1977 to eliminate abusive and deceptive practices in the debt collection industry.  The act created guidelines debt collectors must adhere to and penalties and remedies if debt collectors violated those guidelines.

What is a debt collector as defined by the FDCPA?

A debt collector is “any person who uses any instrumentality of interstate commerce or the mail in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly , debts owed or due or asserted to be owed or due another.”

What types of behavior does the FDCPA prohibit?

Before the FDCPA was passed, debt collectors weren't heavily regulated and certain behaviors were acceptable practices. Some of the behaviors the FDCPA eliminated were calling a consumer during unreasonable hours, continuously calling consumers on the telephone, communicating with consumers at their place of employment after they asked not be called at work, the use of profane or abusive language, using the threat of legal action or arrest when legal action or arrest cannot legally be taken or is not intended to be taken, seeking unjustified amounts to satisfy the debt, publishing the consumer's name and address on a 'bad debt” list, and reporting false information on a consumer's credit report.

NCO Financial Systems, Inc. is committed to adhering to the guidelines in the FDCPA and working with consumers to help them resolve their outstanding debt.

If you would like to learn more about NCO Financial Systems, Inc,'s Credit Collection Agency, contact one of our  knowledgeable representatives. Contact information can be found on every page of our  consumer help unit website.

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