About The Credit Debt Collection Process

Why do companies engage in credit debt collection?

When lenders take a chance on consumers and loan them money, there is always the potential that the consumer may not pay back the loan on time as agreed. Credit debt collection efforts are an attempt to recover the unpaid debt. Some companies may have their own debt collection department to handle debt collections while other companies may hire a credit debt collection company to contact consumers on their behalf to recover an outstanding debt.  

What is the fair credit debt collection law?

All credit debt collection practices must adhere to the guidelines outlined in The Fair Debt Collection Practices Act, or the FDCPA. The FDCPA is a federal law enacted in 1977 as Title VIII of the Consumer Credit Protection Act. The purpose of the FDCPA is to promote fair credit debt collection and eliminate abusive practices in the collection of consumer debt. The act provides consumers with a method of disputing and obtaining validation of debt.

Who is covered by the FDCPA?

Generally, the FDCPA applies to all third party debt collectors. A  third party debt collector is defined as any person attempting to collect consumer debt using interstate commerce methods, such as mail or phone,  on behalf another party.

What type of conduct is prohibited under FDCPA guidelines?

When the FDCPA was enacted, it prohibited certain abusive and deceptive behaviors perpetrated by some debt collectors prior to the passage of the act. Some of these behaviors included phoning consumers during unreasonable hours, publishing a consumer's name or address on a “bad debt list”, threatening arrest or legal action when such activities were never intended to be taken, if the consumer does not pay the debt, using profane and abusive language, communicating with third parties about a consumer's debt and reporting false information on a  consumer's credit report.

Reputable credit debt collection companies do not engage in these abusive and deceptive practices. Debt collectors, such as NCO Financial Systems, Inc. go to great lengths to ensure consumer rights are preserved.

Who is NCO Financial Systems, Inc.?

NCO Financial Systems, Inc. is an industry leader in providing business process outsourcing solutions, including credit debt collection, to their clients. NCO Financial Systems, Inc. was founded over 80 years ago. Today, the company has more than 100 operations worldwide. 

For more information about credit debt collection, contact an NCO Financial Systems, Inc. representative. Contact information can be found on every page or our  consumer help unit website.

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