Debt collection and legal debt collection are very different from each other. A debtor has to go through legal channels before the collection agencies can attempt to collect a debt.
On the other hand, the agencies that do legal debt recovery do not have to go through any legal channels before they attempt to collect money from a debtor.
- If a law firm gets involved in the process of debt collection, the first thing that will happen is that they will obtain an attorney. This is because an attorney has knowledge about the many intricacies of the various laws that are applicable in this region.
- One of the biggest reasons why attorneys specialize in the legal debt collection is because they are well aware of the various tricks and scams that are being used by all sorts of collectors.
- This is why it is so important for you to hire an attorney who is specialized in this field. If you try to deal with a telemarketing scam artist, then your chances of getting any kind of compensation are almost zero. Most telemarketers follow a specific script, which consists of a series of text messages that are sent to their customers in order to get them to purchase something. Once a person subscribes to this particular series of text messages, then he or she will be forced to buy anything that is being offered.
- In some instances, the legal debt collection agency may also use a series of illegal practices. For instance, they may include threats and intimidating tactics to compel the debtor to pay up.
- They may even go as far as stating that they will report the debtor to the local authorities if they do not pay up. Such aggressive practices may include false imprisonment and false arrest as well.
- According to the Fair Debt Collection Practices Act, all debt collectors are required to abide by certain rules and regulations. Among these rules and regulations, one of the most important ones is the duty of honesty.
All debt collectors who are following the federal law must not contact a debtor at any time except to inform them that they have contacted the local creditors or they will be reporting them to the local creditors. Also, they must not threaten the debtor in any way.