KENNETH
C. COURVILLE
ATTORNEY
|
DEBT COLLECTION
PRACTICES
Creditors collecting their own debts are often unaware that
they are subject to some of the same laws that regulate professional third-party
debt collection agencies. If you have an employee calling delinquent accounts,
you could face exposure if he or she violates one of these laws by threatening
actions that are not allowed by law, by calling outside of the proper times,
or by threatening actions that you have no intent on pursuing.
Professional debt collectors attempting to collect the
debts of others are subject to even more stringent requirements. Professional
debt collectors should have strict compliance procedures in place to prevent
improper collection activities.
Depending on whether you are a creditor or a debt collector,
you may face liability for innocent mistakes due to not knowning the law
regulating debt collection efforts, such as
-
calling a debtor directly who is represented by an attorney,
-
failing to give the required warnings on any written communications
with the debtor,
-
failing to validate a debt if properly demanded,
-
failing to stay collections efforts if required by law,
-
failing to investigate a debt if disputed,
-
calling after 9:00 pm on a weeknight,
-
demanding a post-dated check,
-
attempting to collect a charge or fee not allowed by contract
or by law,
-
contacting a debtor by post-card,
-
threatening an action, such as wage garnishment, that is
not allowed in the debtor's jurisdiction, or
-
calling the debtor at work if informed he is not allowed
to have calls at work.
This list is by no means exhaustive. If you are concerned
about your liability, call an attorney and discuss your collections process.
If you have been sued or threatened with suit, contact an attorney immediately
to preserve your rights. The law limits the amount of time you have to
respond to a suit. Delay could result in a loss of some or all of your
rights. My office defends creditors and debt collection agencies against
claims of debt collection laws.
Not certified by the Texas Board of Legal Specialization.
---
Last updated Wednesday, August 11, 2001, at 11:41 am CDT (-0500).
webmaster@courvillelaw.com