Expectations for consumer debt collectors

Expectations for consumer debt collectors

| Feb 8, 2021 | Consumer Debt Collection

When a California consumer neglects to pay his or her debt, it can leave businesses with financial losses and other complications. Parties who are owed money have the right to pursue payment of these balances through various means, including turning to debt collectors to assist with this process. While there are strict laws that protect the rights of consumers in debt, there are also things collection agencies can do that will improve their chance of success.

What can they do?

One of the most basic steps debt collectors can take is to reach out to the consumer. This is often the first step in the collections process, typically trying to reach the individual by phone to discuss payments. Other rules, expectations and considerations for reputable debt collectors include:

  • A debt collector has to provide verification of the debt if requested to do so by the debtor.
  • Debt collectors can only attempt to collect on unpaid balances that are less than seven years old.
  • Debt collectors cannot threaten arrest or other consequences that are outside the scope of their authority.

Because of the sensitive and potentially complex nature of consumer debt collection, it is beneficial for creditors and debt collection companies to seek legal guidance regarding the most effective way to secure payment.

An important task

California businesses have the right to seek payment from unpaid debts owed to their company. The best way to accomplish this goal depends on the details of the individual situation. Working with debt collectors may be a practical solution, but it is worthwhile to first seek legal guidance.