What are the Restrictions on Debt Collectors?

Debt collectors are restricted in doing some particular things, such as threatening to arrest individuals, collecting debt individuals don't owe, and public shaming.

FREMONT, CA: It is not uncommon for debt collectors to have a reputation for being obnoxious, rude, and even scary while trying to collect money from borrowers. A federal law, also called the Fair Debt Collection Practices Act (FDCPA), was passed to curb these annoying and abusive practices. Nevertheless, some debt collectors violate the law. The following tactics are specifically prohibited by law for debt collectors.

Working for a government agency by pretending to be one: It is illegal for debt collectors to pretend to work for any government agency, including law enforcement. Additionally, they cannot claim to work for a consumer reporting agency.

Shaming people in public: A debt collector cannot publicly shame people into paying money they may or may not owe.

It's even illegal for them to send people a postcard. The names of people who owe money cannot be published. The matter can only be discussed with individuals, their spouses, or their attorney. In order to find individuals, debt collectors are permitted to contact third parties, but they can only ask them for people's addresses, home phone numbers, and places of employment. Most of the time, they won't contact those people more than once.

Arresting individuals or threatening to do so: It is illegal for collection agencies to claim that humans have committed a crime or that people will be arrested if they don't repay the debt.

In the first place, the agencies cannot issue arrest warrants or jail the citizens. In addition, individuals cannot go to prison for not repaying a credit card debt, mortgage, car loan, or medical bill on time.

In the event that an individual doesn't summon to court on a matter related to a debt, the judge may issue a warrant for their arrest. In addition, they could go to jail if they fail to pay a court fine related to their debt or refuse to pay taxes or child support.