Reliable Attorneys For Any Consumer Debt Situation
Just as commercial debt collection constitutes a unique challenge, so too does the collection of consumer debts. Our team at Joshua P. Friedman & Associates, Inc., is uniquely situated to handle these types of collection processes. We have immense knowledge of all applicable laws and regulations in the world of consumer debt collection, including the Fair Debt Practices Act, California’s Rosenthal Act and the Fair Credit Reporting Act.
Although a pre-litigation settlement is always preferable in any collection scenario, you can have valuable peace of mind knowing that your partner in the collection process is ready to go the extra mile for you when needed. We stay up to date on every change in the laws and regulations governing fair and responsible collection processes.
What Does Consumer Debt Collections Involve?
Consumer debt collection involves recovering money individuals owe for personal, family, or household purposes. It can include debts like:
- Credit card balances
- Medical bills
- Personal loans
- Household bills (gas, water, electric, internet, etc.)
Learn more about commercial and consumer debt collection differences – click here to explore our detailed guide.
Common Challenges And Solutions In Consumer Debt Collection
Consumer debt collection can present several challenges, such as:
- Unresponsive debtors
- Disputes over the debt’s validity
- Strict legal regulations
We can address these issues through a strategic approach. That approach includes thorough debtor research, effective communication strategies, and adherence to legal requirements. We prioritize understanding each debtor’s situation to negotiate feasible repayment plans while ensuring compliance with all applicable laws.
Laws And Regulations That Govern Consumer Debt Collections
Several key laws govern consumer debt collection to protect consumers from unfair practices:
- Fair Debt Collection Practices Act (FDCPA): Forbids anyone collecting debt from utilizing abusive, unfair, or deceptive practices. It restricts how and when collectors can contact debtors.
- California’s Rosenthal Act: Similar to the FDCPA, this state law further regulates debt collection practices within California, providing additional consumer protections against harassment and abuse.
- Fair Credit Reporting Act (FCRA): This law ensures the accuracy, fairness, and privacy of consumer information in credit reporting and regulates how debt collection activities can impact a consumer’s credit report.
We ensure compliance with these laws by training our team on legal requirements. We also regularly review and update our practices to ensure they comply with all these laws.
Providing Invaluable Tools To Debt Collectors
In addition to that legal knowledge, our team is on the cutting edge of employing organized, accurate and aggressive technological tools that make collecting your debts easier. This greatly increases your chance of a successful outcome when you choose our team to help you collect. To date, we have collected millions of dollars for our consumer debt collections clients. While every case is different and no single remedy for debt collection will work for each individual client, we are confident that together, we can find a solution for collecting any and all outstanding debts.
Answering Your Questions About Consumer Debt Collections
When collecting on consumer debt, you may feel overwhelmed. That’s why we’ve compiled a list of common questions our clients ask us about the topic. That way, you can have a more confident understanding of the process:
What are the legal methods available for collecting consumer debt in California?
Legal methods for collecting consumer debt in California include:
- Sending demand letters
- Negotiating repayment plans
- Filing a lawsuit
- Obtaining a court judgment to garnish wages
- Levying bank accounts
These methods must comply with federal and state laws like the FDCPA and the Rosenthal Act.
Can a creditor legally collect on a debt charged off in California?
Yes, a creditor can legally attempt to collect on a debt that has been charged off in California. A charge-off is an accounting action by the creditor that marks debt collection as unlikely. However, it does not eliminate the debtor’s obligation to pay. Creditors and collection attorneys can still pursue the money owed.
What are the statutes of limitations for different types of consumer debt in California?
The statute of limitations for most consumer debts is four years. This period applies to written contracts, including credit card agreements and personal loans. The statute of limitations for oral contracts and open accounts is typically two years. Once this period expires, creditors cannot legally sue to collect the debt.
What is the difference between a collection agency and a collection attorney?
A collection agency is a company hired to collect debts on behalf of creditors. A collection attorney provides legal representation and can take legal action to recover debts. For more information, visit our Debt Collection Attorney vs. Debt Collection Agency page.
Start The Collection Process Today
We encourage you to contact our offices to discuss your case and learn about your options. You can reach us online or call 310-278-8600.