The Debt Collection Industry
The federal government has tough regulations that are intended to protect people against abusive debt collectors. The Fair Debt Collection Practices Act ("FDCPA") is a federal law that outlines what collectors can and cannot do to obtain money from people, and violators of this law can be held accountable in a court of law. Despite these protections, however, many collectors still ignore this law — and Pennsylvania state laws — to abuse and harass people on a regular basis.
Not every collection agency breaks the law, of course, but scrupulous debt collectors are put at a disadvantage by those who do. Unfortunately, illegal tactics are still used consistently by some agencies, and at the law firm of Boyle, Neblett & Wenger, our lawyers work hard to hold those violators accountable.
How Debt Collection Works in Pennsylvania
For some consumers, the process of debt collection can be difficult to understand. Phone calls and letters from companies that these people have never heard of before can be confusing and can cause people to feel uneasy about dealing with them.
Original creditors — for instance, a department store with a credit card — may attempt to collect on their own debts for awhile or use in-house collection agencies, but many refer out their collection efforts. Once referred out, collection efforts are made by professional creditors who are trained in how to persuade clients to pay. These agencies are used for a contracted period of time until the debts are paid or until the contracted period ends. Then the debt may be returned to the original creditor and referred out to another agency, where the cycle begins again.
Debts may also be sold to companies that are known as "Debt Buyers." These companies purchase debts from the original companies for pennies on the dollar. The original companies are no longer involved with the debts and consumers must now deal entirely with the companies who purchased the debts. This is why a company who you have never heard of before can contact you about a debt that was incurred — or is alleged to have been incurred — with a separate company.
Learn More About the Debt Collection Industry
To find out more about how the debt collection process works and the tactics that companies are not allowed to use in collection efforts, contact an attorney at Boyle, Neblett & Wenger. We hold debt collection agencies accountable for their actions through lawsuits in the state of Pennsylvania. Call toll free at 866-661-7930 to schedule an appointment for a free initial consultation and case evaluation.
