This can be because of greed, or because collection agencies know that there is a statute of limitations on debt in California.
Today, let’s discuss how debt collection companies such as Professional Credit Services work, what they aren’t allowed to do, and your rights as a consumer. Lastly, we’ll discuss how a credit repair attorney in San Diego can help you remove inaccuracies from your credit report and provide education on how to boost your credit score.
How Collection Agencies Work
Professional Credit Services, like all debt collectors, work on one of two different models, or possibly both.
The first model is debt collection as a service–this is where a creditor is unable to collect a debt themselves. They hire a debt collector, and if the debt collector is successful, they get a portion of any money collected.
The second model is one in which a debt collection agency purchases your debt from a company for pennies on the dollar. Because they paid such little money to purchase your debt, if they collect even a fraction of it, they’ve turned a profit.
Whether a collection agency uses the first or second model, they are profit-driven companies who will use any tactics possible to collect the money.
What Can Debt Collectors Not Legally Do?
In 1978, the federal government passed the Fair Debt Collection Practices Act (FDCPA). It sets out laws regarding creditor harassment, and established guidelines on how debt collectors are allowed to collect debts from consumers.
- Debt collectors may only call you between 8:00 AM and 9:00 PM
- They may not use obscene language or threaten you with arrest or physical harm
- Collectors may not threaten to sue you unless they intend to actually file suit
- Collectors may not defame you by telling others, including your employer, that you owe a debt—this includes language on envelopes
- Collection companies and their employees may not act dishonestly and misrepresent themselves as law enforcement, attorneys, or government entities
What Are My Rights as a Consumer?
The FDCPA not only sets guidelines for collectors, but also enshrines several rights of the consumer when dealing with debt collectors. These rights include:
The Right to Opt Out of Phone Calls to Your Home
While this must be done in writing and is best sent through certified mail that requires a signature, you can force the collection agency to stop contacting you at home via phone. They may still write to you, but must follow the provision of not defaming you.
The Right to Opt Out of Workplace Communication
This may be done verbally or in writing—once you inform a collector that they are not to contact you at work, they must comply. They may only contact your employer to verify your employment, or to garnish your wages after they have successfully won a lawsuit against you.
The Right to Force the Company to Prove You Owe a Debt
If asked, the company must provide, in writing copies, of any documentation related to the debt so that you can examine it for legitimacy
How Credit Repair Can Help
If you believe for any reason that you do not legitimately owe a debt, you can hire a credit repair company to advocate on your behalf and get the debt removed from your credit report. Credit repair companies such as the Phenix Group know the tactics that collectors use and have the legal tools and resources to contact not only collectors, but banks and credit reporting bureaus, to get inaccurate items removed as fast as possible and improve your credit score.