Is a debt collector a collection?

Debt collection may involve the sale of a debt to a third party company, sometimes referred to as a “factor” or “debt buyer”. For example, Massachusetts requires companies that buy debt to be licensed whereas California does not.

What a debt collector Cannot do?

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

Is it better to pay the original creditor or collection agency?

Working with the original creditor, rather than dealing with debt collectors, can be beneficial. Often, the original creditor will offer a more reasonable payment option, reduce the balance on your original loan or even stop interest from accruing on the loan balance altogether.

What is the difference between a debt buyer and a debt collector?

Debt buyers, on the other hand, are companies that purchase debts from other companies and then step in to collect those debts. Debt buyers may also be collection agencies who collect the debts they have purchased or they may assign these debts to another debt collector company.

What’s the difference between a debt collector and a nonprofit?

If a person or entity is attempting to collect a debt on behalf of another company under the same ownership or corporate control, it won’t be considered a debt collector if that person’s principal business isn’t debt collection. Nonprofit organizations performing credit counseling and debt liquidation services at the consumer’s request.

How does a debt collection agency contact a debtor?

A debt collection agency will first try to contact the debtor by phone or letter, and will then start the process of bringing a court case against them.

What is the FDCPA definition of a debt collector?

The FDCPA’s definition of “debt collector” includes any person who: uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts or