If you cannot make your credit card or mortgage payments or you have a due bill, a debt collection agency may contact you. Whether you have suffered a clinical emergency, lost your job, or just made some bad financial decisions resulting in growing obligations, owing a significant amount of capital is troublesome enough without being harassed by the collectors.
Even though a debt collector’s job is to regain the money that is past due or in default, there are specific kinds of debt collection practices that are prohibited. If you think that a debt collector has disobeyed your lawful rights, an experienced debt collection attorney Chicago will help you with the procedure.
4 Things Debt Collectors Are Not Allowed to Do
- Speaking with Third Parties
Debt Collection agents may not call third parties about your obligation. Nonetheless, there are some oddities. Debt collectors may contact your attorney if they know about your legal representation. If a consumer law represents you, the debt collection agent cannot call you promptly unless they get your approval or your attorney does not answer the debt collection agent’s communications.
This is not legal for debt collection agents to oppress, abuse, or harass you or any third parties in debt collectors who try to obtain the debt. Notably, they may not involve in some behaviors like threatening violence or physically hurting your property, reputation, a family member, or you. As per the Consumer Financial Protection Bureau’s Final Rule, they may not call you over 7 times in 7 days of initial communication with you or 7 days of consecutive days.
- Misleading or False Statements
The collection agent may not intentionally mislead customers or try to tell lies. For instance, they may not be involved in the actions like claiming to be connected to the local, state, or federal government or a unit of law enforcement. If the debt collection agent makes a claim like this, they are most likely not telling the truth unless the person is trying to obtain unpaid child support. The debt collector can not give inaccurate data about the amount of capital you owe or the payment that the agent will receive.
- Debt Parking
It is also called passive debt collection, in which the collectors will position doubtful or false debts onto a customer’s credit statement without informing the customer. Unluckily, these often go overlooked until the customer applies for a job or loan. Oftentimes, the customer will compensate for the obligation to avoid any troubles with the acceptance process rather than fixing a dispute.