Consumer Debt Recovery
Debt Recovery Is Debt Collection
Consumer debt recovery is a fancy name for a consumer debt collection agency. Although sometimes these companies offer more services to their creditor clients than do most collection agencies. For instance, these companies are equipped to do investigations, asset checks, and even file lawsuits. Most small claims courts and justice of the peace courts allow businesses to appear in court without having to retain the services of an attorney as is the case in county, district, and federal courts. So it is not unusual for you to get sued and go to court and find yourself facing an employee of a collection agency rather than an attorney.
Be Aware Of Your Rights
Like other collection agencies, these companies are also governed by the Fair Debt Collection Practices Act of 1977. Yes, they can threaten to sue you but they cannot threaten to file a criminal case against you or have you thrown in jail. And even if the company is attempting to repossess your automobile, the representative cannot break in to your garage to retrieve the car. The car can be repossessed only if it can be accomplished without a breach of the peace and destruction of property or personal injury.
Don’t Let Yourself Get Harassed
Another ploy often resorted to by these companies is threatening to contact your neighbors. While that is permissible, the company can only say that it is trying to get in touch with you. It cannot say that the matter is related to trying to collect a debt. And do not worry, the representative is prohibited from using obscene or abusive language with you, harassing you, or trying to intimidate you.
If you are being contacted by a consumer debt recovery agency, you should check with your local or state consumer protection agency and get a list of things such a company can and cannot do so you will know what your rights are. You can file a complaint with your local or state government office or the Federal Trade Commission. You can also sue the company in court for damages for engaging in prohibited conduct.
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