Knowing the Law, Debt

When you are contacted by a debt collector, it is important to understand the law. Debt is a serious matter and debt collection companies must abide by federal and state law. Debt collection practices are outlined in these laws. The Fair Debt Collection Practices Act or FDCPA is a federal law with guidelines debt collectors must follow when contacting consumers on behalf of a creditor.

Every consumer should understand the law, debt guidelines in the FDCPA and how it applies to creditors, debt collectors and consumers.

Here are a few definitions outlined in the FDCPA

TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act]
§ 803. Definitions [15 USC 1692a]
As used in this title --

(4)The term "creditor" means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.

The FDCPA does not cover debt collection attempts by a creditor when the creditor is attempting to collect its own debt and using its own name to do so.

 

TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act]
§ 803. Definitions [15 USC 1692a]
As used in this title --

(6)The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails 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.

A debt collector is not the creditor according to the federal law. Debt collectors are those attempting to recover debt on behalf of a creditor.

When a debt collector contacts a consumer on behalf of a creditor, consumers should understand the  law. Debt the consumer is assumed to owe a creditor can be disputed through the validation process.

FDCPA Section 809. Validation of debts [15 USC 1692g]
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

At NCO Financial Systems, Inc, we take debt collection seriously. All of our customer service representatives understand the Fair Debt Collection Practices Act.  We are a business process outsourcing company. We handle accounts receivable, call center operations and debt collections on behalf of creditors. We follow the law, debt guidelines and applicable state regulations when contacting consumers about debt.  We are committed to helping the consumer understand the law and the debt collection process. That's why we created a consumer website at www.consumerhelpunit.org.

We are required under state and federal law to notify consumers of the following rights. This list does not contain a complete list of the rights consumers have under state and federal law. Please click this link for important information about your rights. State and Federal Disclosure Link.