The Fair Debt Collection Practices Act (FDCPA) was established to regulate debt collection practices. The Act came into existence after the Federal Trade Commission (FTC) received numerous complaints about unfair and illegal debt collection methods employed by the third party debt collectors. One such formidable third party collection agency that outsmarts all other debt collection agencies is the NCO Financial Systems.
The NCO has over 100 offices in more than ten countries and has a work force of 24,000 employees that actively participate in all debt collection processes. The NCO is a third party debt collection agency that collects on behalf of creditors. The FTC fined the NCO a record $1.5 million in 2004 in a debt collection case for violating the FDCPA. This collection agency tops all types of debt related complaints.
According to the FDCPA, an NCO debt collector cannot harass you by calling you at any time of day or night. He cannot call you at your workplace. He cannot shout or abuse you to pay the debt. If you have asked him verbally or in writing not to call you, he has to stop. If you are represented by an attorney he must contact only the attorney. By calling you even after your engaging an attorney, debt collector violates the FDCPA. You can sue the NCO debt collector for this violation. An NCO debt collector cannot intimidate you with dire consequences like threatening to garnish your wages, or get you arrested. These violations are strictly punishable by law.
The FDCPA has strict laws to punish agencies like the NCO. Once the NCO gets hold of your account there is no stopping them to make calls or engage in any other form of harassment. You should first know your rights in the FDCPA.
If you default on payments, it is advisable to stay ahead of debt collectors by calling creditors and explaining your predicament. Creditors often understand your commitment if you call and explain. However, do not commit to what you cannot pay. Just make an agreement to pay regularly what fits your budget. If you can pay more at a later point, it would be welcome.
Debt collection agencies like the NCO do not play the game by rules. It is best to recognize their violations at the first instance and go legal. If debt collectors have violated, each violation may be sued for $1000. Per the Section 813 of the FDCPA you can sue debt collectors for violating the fair debt act.
