Illinois Debt Collection Agency

Posted on December 29, 2011 by Admin
Illinois Debt Collection Agency

Illinois Debt Collection Agency

The Fair Debt Collection Practices Act 1977 was introduced to protect struggling U.S. consumers from unlawful creditor harassment. Those who are struggling with personal debt will inevitably deal with a collection agency should they default on an agreement. Find out what rights collection agencies do and don't have when contacting a debtor for repayment.

How can Debt Collection Agencies Make Contact with a Debtor?

A collection agency is legally able to contact a debtor between the hours of 8am and 9pm. The only exception to this rule is when a debtor agrees to a meeting taking place. Contact can be by mail, telephone, telegram, fax or in person. Debt collection agencies cannot contact a debtor whilst they are at work if the employer does not approve of this practice.

Outstanding Personal Debts and Third Party Contact

Debt collection agencies are only allowed to talk to a third party to find out where the debtor lives, a phone number or their place of work. They should not normally inform a third party that the reason for making contact is due to unpaid personal debts. Should the debtor have employed the services of an attorney, they should be contacted rather than the person who owes money.

Debt Collection Agencies Must Provide Written Notice

A collection agency is legally obliged to provide the debtor with written notification within 5 days of the initial contact. This correspondence must document the outstanding personal debt, the name of the creditor and how they should proceed if the money is not owed by them. Should the debtor advise within 30 days that they don't owe the money, collection activity must cease. This can be revoked should a debt collection agency be able to prove that this money is owed.