How Do You Collect Debt?


Quick Answer

To collect debt, the Fair Debt Collection Practices Act stipulates that people may contact others via phone and mail or sue in civil court for debts, according to the Federal Trade Commission. Debts incurred to run a business are not covered by the Fair Debt Collection Practices Act.

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Full Answer

The type of debts that can be collected include household debts; money placed on personal credit cards; debt from a mortgage payment, medical bill or auto loan; and personal or family money borrowed, explains the FTC. When contacting a person to collect a debt, individuals may not contact via phone or text message at inconvenient times or places, such as after 9 p.m. in the evening or before 8 a.m. in the morning, or at work if the person indicates personal calls are not allowed.

To collect a debt, it is important that all correspondence includes a validation notice that indicates the amount owed, how to proceed if the debt is disputed and how to pay the debt. The debt collector cannot disclose information to other individuals unless these individuals were indicated as references, co-signers or an attorney representing the person incurring the debt at the time the debt was incurred, notes the FTC.

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