Protections offered by the FDCP

Minnesota residents who wish to reestablish their credit may find it interesting to learn more about the methods of collection implemented by many creditors. As the uncollectible consumer debt rises, it creates a market for companies who purchase many defaulted accounts and practice different techniques when pursuing payments.

These aggressive methods often include calling the debtor's employer in efforts to scare and embarrass the debtor into paying their balances. If the collection agency calls the boss at work, he or she may say that all contact has to occur via regular mail or may say not to call again. The employers are also mandated by law not to disclose any personal information about the employee because this action may infringe on the employees privacy laws.

Under the federal Fair Debt Collection Practices Act, the consumers are given a specific set of rights that protect them from certain practices during the collection process. They may request that the creditor cannot attempt to contact the debtors at their place of work, and the bill collectors must honor this decision. In addition, under the same law, the debtor can request not to be contacted via telephone at home.

Many individuals have fallen into financial hardships during the downturn, opening the doors for harassment from the creditors. Obtaining the help of an attorney may be an effective way to settle any existing debt and reestablish good credit. In some cases, after reviewing the relevant financial information regarding a client's situation, an attorney might suggest that he or she file for federal bankruptcy protections.

Source: Fortune, "Bill collectors calling your boss? Here’s what to do", Anne Fisher, August 28, 2014

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Prescott Pearson & Tande, PA
443 Old Highway 8 Northwest, Suite 208
New Brighton, MN 55112

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