Editing Debt collection (section)

==Regulation==

===Canada===
In [[Canada]], regulation is provided by the province or territory in which they operate.

The law is typically called the Collection Agencies Act and usually affords a government ministry power to make regulations as needed.<ref>{{cite web|title=Collection and Debt Settlement Services Act, R.S.O. 1990, c. C.14|url=https://www.ontario.ca/laws/statute/90c14|website=Ontario|date=24 July 2014|publisher=Government of Ontario|access-date=19 January 2018}}</ref> Regulations include calling times, frequency of calls and requirements for mailing correspondence prior to making telephone contact.<ref>{{cite web|title=Collection Agencies|url=http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/h_ca02149.html|website=Office of Consumer Affairs (OCA)|date=16 April 2003 |publisher=Government of Canada|access-date=19 January 2018}}</ref> Most debts in Ontario and Alberta are subject to a [[limitation period]] of two years. In most other provinces the limitation period is six years. After the corresponding (two or six, depending on province) anniversary of the last formal intention to pay the debt, neither the collection agency nor anyone else has legal authority to collect it.<ref>{{cite web|title=Limitations Act, 2002, S.O. 2002, c. 24, Sched. B|url=https://www.ontario.ca/laws/statute/02l24|website=Ontario|date=24 July 2014|publisher=Government of Ontario|access-date=19 January 2018}}</ref> <!--Note: A carswell book on debt and collection also makes this conclusion--> [[Credit bureau]]s will retain both the debt and collection history on the debtor's credit file for 6–7 years, depending on province. Although the collection agency can continue to collect or attempt to collect the debt, they cannot garnish or place a lien on the debtor past the limitation period unless the court upholds a new date of last activity on the account based on other factors. Further information may be found in the regulations for the Province of Ontario relating to on prohibited debt collection practices.<ref>{{cite web|title=R.R.O. 1990, Reg. 74: GENERAL|url=https://www.ontario.ca/laws/regulation/900074#BK6|website=Ontario|date=24 July 2014|publisher=Government of Ontario|access-date=19 January 2018}}</ref>

In [[Manitoba]], the governing document is the Manitoba Consumer Protection Act. Complaints regarding violations of the Act should be directed to the Manitoba Consumer Protection Board who will either mediate or enforce the act when it is broken.

Province-specific statutes:<ref>{{cite web|last=Johnson|first=Margaret H.|title=Stop Creditor Harassment|url=http://www.debtcanada.ca/news/archive/debtors-rights/97-stop-creditor-harassment|publisher=Debt Canada|access-date=20 September 2012}}</ref>
* [[Alberta]] – Collection Practices Act
* [[British Columbia]] – Business Practices and Consumer Protection Act
* [[Manitoba]] – Consumer Protection Act
* [[New Brunswick]] – Collection Agencies Act
* [[Newfoundland and Labrador]] – Collections Act
* [[Nova Scotia]] – Collection Agencies Act
* [[Ontario]] – Collection Agencies Act and Debt Collectors Act
* [[Prince Edward Island]] – Collection Agencies Act
* [[Quebec]] – Act Respecting the Collection of Certain Debts
* [[Saskatchewan]] – Collection Agents Act

===Spain===
If talking to the debtor is unfruitful, a creditor can write a letter to the debtor outlining the following details:
* the holder of the debt
* the amount of the debt
* the purpose of the debt
* previous steps taken to recover the debt
* steps that will be taken to recover the debt
* a date by which payment of the debt is expected (a minimum of seven days)
* a request for any disputed issues to be put in writing

The assignment of the claim against the debt shall not be effective if the assigned debt is not real, legitimate, receivable arises from a crime or the debtor is a public institution, political party or homeless individual.

A collection agency is usually better and faster. Some dress in costumes just to underline the message.<ref>{{cite news|last1=Nash|first1=Elizabeth|title=Boom time for Spain's costumed debt collectors|url=https://www.independent.co.uk/news/world/europe/boom-time-for-spains-costumed-debt-collectors-922500.html|access-date=19 January 2018|work=The Independent|date=7 September 2008}}</ref>

===United Arab Emirates===

Pursuant to the [[United Arab Emirates|UAE]] laws for financial debt collection, an extrinsic value asset needs to be shown to the creditor or the bank. That makes sure that if the debtor does not pay the unpaid invoices, his extrinsic asset can be taken by the creditor. If the debtor does not provide an extrinsic asset or pay back the financial amount, he is accountable to the civil and criminal liabilities.{{citation needed|date=November 2018}}

According to the UAE financial laws, it is stated under the Article 401 of the Penal Code that if the person provides a [[Legal system of the United Arab Emirates|bounced cheque]], he shall be fined for this criminal activity or given the punishment of imprisonment.{{citation needed|date=November 2018}}

As a creditor, you should communicate with the bank to know if the defaulter lacked funds before the provision of the cheque. If that is true, then a case is filed in the police station against the defaulter, after which they will investigate the matter and referred to the Public Prosecutor office. Also, you should know that the report cannot be filed after six months of the cheque issuance.

The public prosecutor takes the case in its hand and investigates from both sides (creditor and debtor) for clarity of the case of bounced cheque. Upon the investigation, it is then decided if the defaulter has to pay the bail "Kafala" as to pay the amount of the asset of that worth the amount or deposit his passport. If the bail does not happen, then the defaulter is put behind the bars.{{citation needed|date=November 2018}}

===United Kingdom===
In the [[UK]], debt collection agencies are licensed and regulated by the [[Financial Conduct Authority]] (FCA).<ref>{{cite web|title=Online Technical Resource: Debt Collecting|url=https://www.financial-ombudsman.org.uk/publications/technical_notes/debtcollecting-note.html#1|website=Financial Ombudsman Service, Ltd|access-date=19 January 2018}}</ref> The FCA sets guidelines on how debt collection agencies can operate and lists examples of unfair practices.<ref>{{cite web|title=Consumer credit countdown – Review into debt collection practices of payday lenders starts on day one of FCA regulation|url=https://www.fca.org.uk/news/press-releases/consumer-credit-countdown-%E2%80%93-review-debt-collection-practices-payday-lenders|website=Financial Conduct Authority|access-date=19 January 2018|date=12 March 2014}}</ref> These guidelines are not law but they represent a summary and interpretation of various legal areas. Compliance with these guidelines are also used as a test of whether the agency is considered fit to hold a credit licence.

Examples of unfair practices include misrepresenting enforcement powers (e.g., claiming that property may be seized), falsely claiming to be acting in an official capacity, harassment, claiming unenforceable or excessive charges, misrepresenting the legal position to a debtor, and falsely claiming that a court judgement has been obtained when it has not. The legal basis for these practices comes from section 40 of the [[Administration of Justice Act 1970]].<ref>{{cite web|title=Administration of Justice Act 1970: Punishment for unlawful harassment of debtors|url=https://www.legislation.gov.uk/ukpga/1970/31/section/40|website=legislation.gov.uk|publisher=U.K. National Archives|access-date=19 January 2018}}</ref>

Collection agencies and their debt collectors in the UK are not the same as court-appointed [[bailiff]]s.

====Scotland====
Collection agencies and debt collectors based in the UK are permitted to invite debtors to attempt to repay debts but have no statutory authority in law to enforce debts unless they obtain a Decree (Scottish term for Judgement) against the debtor, although enforcement of the Decree is carried out, usually under instruction of a creditor or their appointed agent, by a [[sheriff officer]] or a [[messenger-at-arms]]. Likewise the creditor may move to inhibit, Attach or arrest in the hands of a third party with the assistance of an Officer of the Court. Scotland does not have a pre-action protocol and creditor agents need only be licensed if pursuing a consumer debt that is protected under the [[Consumer Credit Act 1974|Consumer Credit Act]].

===United States===
Within the United States, debt collection and debt collectors are subject to both state and federal regulation. Within the federal government, the [[Federal Trade Commission]] is the primary federal regulator of collection agencies. The Bureau of Consumer Financial Protection, housed within the [[U.S. Federal Reserve]], also has regulatory power over collection agencies.<ref>{{cite web|title=The Consumer Financial Protection Bureau : Measuring the Progress of a New Agency|url=http://bipartisanpolicy.org/wp-content/uploads/sites/default/files/BPC%20Consumer%20Financial%20Protection%20Bureau%20Report.pdf|website=Bipartisan Policy Center|access-date=14 June 2017|date=September 2013}}</ref> The CFPB announced on 24 October 2012, that it had finalized the rule for supervising debt collection agencies and debt buyers under a definition that would include about 175 U.S. companies.<ref>{{cite web|title=CFPB to Oversee Debt Collectors|url=https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-to-oversee-debt-collectors-2/|website=CFPB|publisher=Consumer Financial Protection Bureau|access-date=14 June 2017|date=24 October 2012}}</ref>

Many [[U.S. states]] and a few cities require collection agencies be [[Licensure|licensed]] and/or [[surety bond|bonded]]. In addition, many states have laws regulating debt collection, to which agencies must adhere (see [[fair debt collection]]).

====Fair Debt Collection Practices Act====
{{main|Fair Debt Collection Practices Act}}
The [[Fair Debt Collection Practices Act]] (FDCPA) is the primary federal law governing debt collection practices. The FDCPA allows aggrieved consumers to file private lawsuits against a collection agency that violates the Act. Alternatively, the [[Federal Trade Commission]] or a [[state attorney general]] may take action against a noncompliant collection agency and, in the event a violation is found, may impose penalties including fines, damages, restriction of the debt collector's operations or closing down its operations, as occurred with [[Capital Acquisitions and Management Corporation|CAMCO]] in 2006.<ref>{{cite web|title=Federal Trade Commission Enforcement of the Fair Debt Collection Practices Act: Report To the Consumer Financial Protection Bureau|url=https://www.ftc.gov/reports/federal-trade-commission-enforcement-fair-debt-collection-practices-act-report-consumer-1|publisher=Federal Trade Commission|access-date=19 January 2018|date=February 2016}}</ref> Between 2010 and 2016 the Federal Trade Commission banned more than 60 companies that did not follow the [[Fair Debt Collection Practices Act]].<ref>{{cite web|url=https://finance.yahoo.com/news/how-to-get-the-debt-collector-to-pay-you-know-your-rights-141908625.html|title=How to get the debt collector to pay you|access-date=14 June 2017|date=2016-11-21}}</ref>

The FDCPA specifies that if a state law is more restrictive than the federal law, the state law will supersede the federal portion of the act. Thus, the more restrictive state laws will apply to any agency that is located in that state or makes calls to debtors inside such a state.

Among the protections provided by the FDCPA are the following:

* A debtor has the right to request written validation of the debt;<ref>{{cite web |title=15 U.S.C. Sec. 1692g. Validation of Debts |url=https://www.law.cornell.edu/uscode/text/15/1692g |website=Legal Information Institute |publisher=Cornell Law School |access-date=4 November 2019}}</ref>
* A debtor may demand that the collector cease communication.<ref name="FDCPAtext">{{cite web|url=http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf|title=Fair Debt Collection Practices Act|date=7 July 2010|access-date=29 July 2015}}</ref> Section 809 of the Act directs that for disputed debts "the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt". When consumers resort to lawsuits against collectors who fail to verify debts, the collector is liable for the complainant's legal costs if the debt is found to be bogus.<ref>{{cite news|last1=Lazarus|first1=David|title=When debt collector seeks payment, who has burden of proof?|url=https://www.latimes.com/business/la-xpm-2013-jul-08-la-fi-lazarus-20130709-story.html|access-date=19 January 2018|work=Los Angeles Times|date=8 July 2013}}</ref>
* A debt collection may not place a call to the debtor if the call will cost the debtor toll charges (in most other countries recipients of telephone calls are not charged, so this issue does not arise).
* Limits are placed on the time of day that debt collection calls can be made, to whom, and where. If a person answers, the call center may track statistics (e.g., the times and days when someone answers) in order to place calls at times when the debtor is more likely to be home; typically this is done by an automated dialing system between the times of 8&nbsp;a.m. and 9&nbsp;p.m. local standard time. The collector may not use illegal and deceptive practices (e.g., threatening the debtor with arrest or [[Police impersonation|impersonating law enforcement]]).
* The collector cannot use obscene language and must inform the debtor of the nature of the call, their name, and the name of the collection company when requested.
* Collectors must state their name and must give the name of their employer if the person specifically asks. They may only contact each person once, unless it is believed that the person gave the collector incorrect or incomplete information at the time, but now has complete or updated information.<ref name="FDCPAtext"/>

Collectors may contact a debtor at the workplace unless the collector has been informed the employer prohibits such calls.<ref name="FDCPAtext"/> The FDCPA allows a collector to call a neighbor or relative for help in locating the debtor, but they may only ask for "address, home phone number, and place of work" and are "not permitted to discuss [the] debt with anyone other than [the debtor], [their] spouse, or [their] attorney".<ref>[http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm "Debt Collection FAQs: A Guide for Consumers"], U.S. Federal Trade Commission</ref> The debtor may grant a debt collector permission to the collection agency to speak to other people, but otherwise contact with an unauthorized person violates the FDCPA.

====Fair Credit Reporting Act====
{{main|Fair Credit Reporting Act}}

In the United States, the [[Fair Credit Reporting Act]] (FCRA) is a federal law that regulates the manner in which consumer credit reporting agencies may maintain credit information. Among the protections the FCRA offers to consumers:

* If an error occurs in the reporting of debt, the credit reporting agencies and information suppliers have a 21-day safe harbor period to correct the error and the safe harbor period can be used as an affirmative defense in a lawsuit.<ref>{{cite web|title=15 U.S. Code §&nbsp;1681n - Civil liability for willful noncompliance|url=https://www.law.cornell.edu/uscode/text/15/1681n|website=Legal Information Institute|publisher=Cornell Law School|access-date=23 March 2015}}</ref><ref>{{cite web|title=15 U.S.C. § 1681o: US Code - Section 1681O: Civil liability for negligent noncompliance|url=https://www.law.cornell.edu/uscode/text/15/1681o|website=FindLaw|access-date=14 June 2017}}</ref>
* If a debtor pays off a collection account, the item may remain on the debtor's credit report but must be marked "paid".
* If information about debt that appears on a credit report is disputed by the debtor, the credit reporting agency must investigate the dispute.<ref name="FTCdispute">{{cite web|title=Disputing Errors on Credit Reports|url=https://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports|website=Federal Trade Commission|access-date=14 June 2017|date=February 2017}}</ref> Unless the dispute is deemed frivolous, the credit reporting agency must normally complete its investigation within thirty days.<ref name="FTCdispute"/>

====Voluntary standards====
In addition to state and federal laws, many U.S. collection agencies belong to [[trade association]] called [[ACA International]] and agree to abide by its code of ethics as a condition of membership. ACA's standards of conduct require its members to treat consumers with dignity and respect, and to appoint an officer with sufficient authority to handle consumer complaints. Consumers may attempt to resolve disputes with a collection agency who is a member of ACA through that organization's consumer complaint resolution program.