Many ordinary consumers have misconceptions about California collection services. This is entirely understandable considering the complex maze of state and federal laws governing different types of debts and debt recovery by creditors and collection agencies. For example, credit card debt, car loans and unpaid mortgage loans all involve completely different recovery procedures.
Apart from debt-specific laws, recovery agencies also face regulations that govern the actions of their staff. For instance, a debtor can only be called during waking hours (8 a. M. To 9 p. M.). Also, it's not legal to place multiple calls in quick succession in this period. Debtors can even stipulate that they do not want to be called during a specific period of the day.
As a general rule, it's not a good idea to avoid recovery agencies. They have the authority to follow up through many other legal means. However, debtors do have the right to request that they be contacted only through the mail, or even ask that the agency completely cease all its attempts. Of course, this would lead straight to a court case so it's not a recommended course of action.
As specified under the California Civil Code, recovery staff is prohibited from using profanities and obscenities during verbal encounters and in written letters. The staff must also not engage in any form of conduct that will oppress, abuse or harass the debtor. Ordinary written communications must not be likened to legal notices, and every letter sent must include the agency name and contact information.
At the first contact or within five days after it, the agency must provide the debtor with the name of the creditor and the amount being sought. They are also required to provide an explanation of the process to dispute the debt. If it is not disputed within 30 days, the debt will be assumed to be valid.
Employers can also be contacted for certain specific reasons. For example, they may want to verify that the debtor is still working at the company. If the creditor has already obtained a court judgment, the recovery agency may contact the employer to garnish wages. If an employer does not respond to the written request within 15 days, recovery personnel can use other means to contact them.
As mentioned above, the process that follows subsequent to the initial contact will differ based on the type of debt. The procedure to recover secured debts such as car loans is simple enough, with a request for payment followed by a threat to repossess the asset in question. Unsecured debts need a lot more follow-up in order to get the debtor to pay off the full amount, or sign an agreement involving a partial payment and checks for the balance amount to be paid at a later date.
Maintaining a list of happy creditors as clients requires the debt recovery agency to have a crack team of recovery personnel with a lot of experience about what works and what cannot be done. Most California collection services will be headed by an attorney or a team of lawyers licensed by the state to practice law in California. Put together, they can force non-paying debtors into an untenable situation where the only choice is to pay up quickly or face legal action leading to recovery of the debt.
Apart from debt-specific laws, recovery agencies also face regulations that govern the actions of their staff. For instance, a debtor can only be called during waking hours (8 a. M. To 9 p. M.). Also, it's not legal to place multiple calls in quick succession in this period. Debtors can even stipulate that they do not want to be called during a specific period of the day.
As a general rule, it's not a good idea to avoid recovery agencies. They have the authority to follow up through many other legal means. However, debtors do have the right to request that they be contacted only through the mail, or even ask that the agency completely cease all its attempts. Of course, this would lead straight to a court case so it's not a recommended course of action.
As specified under the California Civil Code, recovery staff is prohibited from using profanities and obscenities during verbal encounters and in written letters. The staff must also not engage in any form of conduct that will oppress, abuse or harass the debtor. Ordinary written communications must not be likened to legal notices, and every letter sent must include the agency name and contact information.
At the first contact or within five days after it, the agency must provide the debtor with the name of the creditor and the amount being sought. They are also required to provide an explanation of the process to dispute the debt. If it is not disputed within 30 days, the debt will be assumed to be valid.
Employers can also be contacted for certain specific reasons. For example, they may want to verify that the debtor is still working at the company. If the creditor has already obtained a court judgment, the recovery agency may contact the employer to garnish wages. If an employer does not respond to the written request within 15 days, recovery personnel can use other means to contact them.
As mentioned above, the process that follows subsequent to the initial contact will differ based on the type of debt. The procedure to recover secured debts such as car loans is simple enough, with a request for payment followed by a threat to repossess the asset in question. Unsecured debts need a lot more follow-up in order to get the debtor to pay off the full amount, or sign an agreement involving a partial payment and checks for the balance amount to be paid at a later date.
Maintaining a list of happy creditors as clients requires the debt recovery agency to have a crack team of recovery personnel with a lot of experience about what works and what cannot be done. Most California collection services will be headed by an attorney or a team of lawyers licensed by the state to practice law in California. Put together, they can force non-paying debtors into an untenable situation where the only choice is to pay up quickly or face legal action leading to recovery of the debt.
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