Debt Collecting Q & A - Any Laws to Follow in Collections?

by Jim Finucan

Published on this site: April 7th, 2006 - See more articles from this month

Question : Are there any laws I must follow in pursuing debtors?

Answer : Yes. And no. If you are employed by a collection agency you are bound by the Fair Debt Collection Practices Act of 1974. This law should be available at your collections agency or you might find a copy at your library (I cover the main points of this law in my book). The law governs such things as the times during which calls can made, things you can and cannot say and so on. A collection agency is largely responsible for the training and education of its own collection agents.

If you are a private business you are really governed only be the unwritten laws of decent human conduct. Harassment is contacting someone with the intent to annoy. You are contacting with the intent to collect a legally incurred debt, so you are covered. Now, you obviously can't beat someone up or threaten him or her with harm but you can speak plainly and directly as someone who is owed money - and so you should. Say what you wish to say and think about what would strike a nerve with the debtor. Confront him with his actions in a straightforward manner and don't worry about being thought "mean." Debtors need to hear the truth whether they like it or not.

The thing you need to be aware of is harassment. You won't cross the line into being guilty of this if you keep your focus clear - and that's collection of the debt. Don't heckle the debtor or engage him in a personal battle. Keep it on a professional level. Be aggressive and use your good sense. Stay with techniques that are strong and just and you'll be in good shape.

Jim Finucan is a fifteen-year collections expert whose techniques have proven to double collection returns again and again. Jim tells all in "Past Due - A Debt Collection Manual." More info at: http://www.tiare.com/pastdue.htm