Laws Governing Debt Collectors
In any field of debt collection, a collector will be required to have in depth knowledge of the laws governing their activity. There are multiple sources of legal regulation in existence. Depending on the field, there are specific laws that will allow certain practices while prohibiting others. The laws in effect allow rights of lenders and agencies when collecting debt, and the rights of borrowers who owe the debt. Debt collectors will receive training on the specific laws pertaining to their field. However, it is good practice to have a general knowledge of most of them, as it will provide more opportunity for advancement in a collection career.
The most widely implemented law regarding debt collection is the Fair Debt Collection Practices Act. While this law specifically regulates third party debt collectors, it is common to find many of the rules of this law followed by first party debt collectors. There is also the Fair Credit Reporting Act. While this law will pertain to lenders and collection agencies in general, and not individual collectors, it is good to know what it is, as questions from a borrower may arise during the debt collection process regarding credit reporting. The Gramm-Leach Bliley Act, not created specifically to regulate debt collection, does have some impact on the field. Medical Collectors will require knowledge of the Health Insurance Portability and Accountability Act. There are rules inherent to both state and federal law. Bankruptcy law also has an impact on the debt collection field.