The current economic conditions have resulted in a surge of past due and unpaid debt. This includes commercial and individual debt. As a result there are lot of people trying to take advantage of the situation. The con artists only add to the misery that unpaid debt causes for both parties. Make no doubt about it if you or your business has incurred debt then you legally have an obligation to pay it. Debt collection strategies employed by collections are regulated by both state and federal laws.
The Fair Debt Collection Act provides a substantial amount of protection from abuse from debt collectors if the collectors obey the law. It is really quite common for debt collectors to stretch the interpretation and many cases break the law. It is wise for anyone who has been contacted by a collector to spend the time to read the Fair Debt Collections Act. It will provide you with a lot of basic information what debt collection strategies and practices are permitted and which are not. The Internet also has a lot of information on debt and debt collections.
The Internet also has a lot of very bad information that can result in serious problems for many debtors. Bad advice abounds on how to defend yourself against debt collection strategies. Some of these bad defenses include:
1. Statute of limitations on debt. Just because a creditor has not made a collection effort for several years does not mean they cannot collect on the debt. The creditor can sue you for the full amount of the debt.
2. The debtor has never had any contact with that is trying to collect the debt or taking court action. I have no agreement with said company so the debtor does not have to pay the debt.
3. A creditor cannot sue because of the lack of a signed contract.