Hiring a debt collector? Know what laws they should follow to hire an honest collector

A business can require a debt collector when they have a lot of bad debts. Writing off so many bad debts is not a great option financially as it can lead to serious cash crunch, which can lead to challenges in keeping the business alive.

If you are looking to hire a debt recovery agency like Cedar Financial, it is important to know their limitations, and what laws they must certainly follow. It will give you a heads up as to what to expect from them, and make sure the collector who is working with your customer doesn’t harass them and ruin your reputation.

Here are the laws that a collector must follow:

Law 1: Calling at work

A debt collector has a legal right to call a debtor at work. They are not breaking any laws in doing so. But if a delinquent doesn’t want them to call at their workplace, they can ask them not to. They can send them a written letter asking them to stop contacting them at work. Or they can ask their boss to tell them not to bother you at work.

A collector will agree to this request and will only call at work next to tell the debtor about the creditor suing him/her for not paying the debt.

Law 2: Calling time

If a debt collector calls you at a reasonable time, it is perfectly fine. Most collectors call you between 8:00 am - 9:00 pm (according to your local time zone). This is the standard time for a collector to call a debtor is most regions.

If the debtor is at work during this time, a collector can call him/her there, but as we mentioned above a debtor can ask a collector to stop. Other than this time, a collector cannot contact a debtor with his/her permission.

Law 3: Verbal abuse

A collector is banned by the law to verbally abuse the debtor or threaten them. A collector cannot threaten a debtor about suing them until the creditor allows that. Also, they cannot threaten to take your assets. They also cannot disclose the information about the debt to anyone except the credit bureau.

Law 4: Who can they call?

A debt collector can make contact with the debtor’s boss, family, friends, and neighbor. But the law only allows them to make a single call and interact with them. Also, they can only ask about the delinquent’s whereabouts, his/her workplace and contact details. They cannot disclose the debt.

Moreover, the only people who a collector can disclose about the debt are the delinquent’s spouse and his/her attorney.

Law 5: How much money can a collector ask for?

A collector can only ask a debtor to pay the amount, which they owe to the creditor. A collector doesn’t have any right to ask for more money. Also, a debtor can get the debt validated which will also tell the debtor what is the actual amount he/she owes to the creditor.

I hope you will make sure that the collector who you hire follows these rules. If they don’t, it can ruin your reputation. That is why research and hire a reputable firm like Cedar financial.

Jackson Gilbert is a Blogger. With his skills, he has been helping fellow marketers and brands worldwide. When not glued to his laptop, he can be found making travel plans that rarely happen.