Things Debt Collectors Can Do and What They Can’t

A debt is recovered when a loan like credit card balance remains unpaid for some time; then creditor hires a third party known as a debt collector who focuses on collecting the money.

Nobody likes being contacted by debt collectors. It’s a situation that no one wants to be in- where you get multiple phone calls throughout the day asking you to pay your bills that you can’t afford. The constant messages left on your mailbox, the calls at your workplace or to friends or family, all of this is quite embarrassing and stressful.

Do you know that debt collector’s tactics are governed and limited by the Fair Debt Collections Practice Act? When you’re dealing with debt recovery in Dubai, it is crucial that you should know what debt collectors can do and what they cannot.

Things Debt Collectors Can DoSeek Payment On An Expired Debt

Every unsecured debt such as credit card and medical bills has certain limitations. After the due date, the debt gets "expired," and you can be sued for making the payment. But you will still owe it, and debt collectors can seek payment on the old financial obligations.

Pressurize You

While debt collectors can’t threaten or mislead you, they can pressurize you for payment. This pressure building may include daily calls, frequent emails or letters, or talk about pursuing a lawsuit for debt payment— as long as they lie within the bounds of the law.

Sell Your Debt

The debt collectors sometimes resell debt that they haven’t been able to recover, or they can sell the remaining amount when only partial payment was made. So if your debt collector has stopped contacting you regarding debt, don’t be surprised if another one starts. So when you’ve made the full payment, then make sure you get this agreement in writing so that you can prove it.

Things debt collectors can’t doCome To Your Workplace

It is illegal if a debt collector comes to your workplace for collecting payment. The FDCP Act prohibits publicizing of debt and showing up at the workplace to collect debt counts.

However, they may call you when you’re at work, but they are not allowed to reveal to your co-workers that they're debt collectors. You may ask them not to call you when you’re at work, and as per law, they must stop on your request.

Harass You

Harassment from debt recovery comes in various forms, such as:

• Repeated calls
• Violence threats
• Publicizing information about you
• Using abusive or obscene language

All of these acts are illegal under the debt collection practices act.

Arrest You for Debt

You cannot be arrested for the debt you owe to the debt collector.

However, if a debt collector sues you over the debt and you fail to show up in the court; then you might lose and be ordered to pay. And if you defy that court order, then the collector may seek an arrest warrant against you.

Hence, knowing your rights and keeping all these things in mind will help you in dealing with debt recovery in Dubai.