News & Resources

False debt collectors not following rules

Mar 23, 2012 Mike Garretson

In the world of debt collection, there are certain rules and regulations that true debt collectors must follow to ensure fair dealings when trying to collect money owed to businesses or groups. Florida's WZVN ABC-7 outlined some of the regulations that debt collectors have to abide by. The source explained that collectors can only call owners of a delinquent account between 8 am and 9 pm, but cannot contact a person once they've revealed they have an attorney. The news source also reported it's required that debt collectors identify that they work in the collection field, inform the consumer of their right to contest the debt and send a validation letter within 5 days. Done the right way, debt collection can be extremely beneficial for businesses. A 2010 Ernst & Young report showed collectors returned $44.6 billion in debt to American companies in 2010. The study noted Texas, New York and California saw the biggest returns. President of the New England Collectors Association David A. Sands explained to that the benefit to firms can be invaluable, saying that "we are key to small businesses that are owed money; otherwise there would be no accountability."