Constant phone calls from debt collectors can put real stress on individuals and business owners. Certain regulations have been put in place to protect companies and consumers against harassment and abuse by debt collection agencies. Understanding these protections can help you retain your financial assets and maintain a positive attitude throughout the process. Working with a qualified Katy estate planning law firm can be a good first step toward putting a stop to the continual phone calls and letters from debt collectors.
State and Federal Rules Protect Debtors
The provisions of the Fair Debt Collection Practices Act apply to all residents of the United States and set forth restrictions on the ways in which debt collectors can contact you, what they can say and whom they can tell about your outstanding debt. The Texas Debt Collection Act also provides additional protections for consumers and businesses in their dealings with debt collectors. These debt collection agencies must comply with a number of important rules, including the following:
- Debt collectors may not call you repeatedly throughout the day.
- They may not call before 8:00 in the morning or after 9:00 at night.
- They may not call you at work if you have requested them not to do so.
- Abusive or obscene language is not allowed.
- Written notice of your debt is required.
- Debt collection agencies cannot give information about your debt to anyone other than your spouse or your attorney.
These debt collection rights are intended to prevent abuses on the part of debt collectors in the consumer marketplace.
Different Rules for Small Businesses
Small business owners in the state of Texas do not enjoy the same protections under the law as consumers. There are a few key strategies, however, that can often provide added relief for business owners when dealing with debt collectors:
- Asking for verification of the debt can prevent collection calls until the agency can provide proof that you owe money.
- If the debt is outside the statute of limitations, your Sugar Land small business attorney can inform the collection agency that you do not intend to pay and that you wish no further contact with them.
- Continual calls, verbal abuse and threats can all constitute harassment and can be grounds for a lawsuit or other legal action against the debt collector. Be sure to document these activities if you feel that your business is being harassed or unfairly treated.
By working with an experienced Katy real estate law and business attorney, you can protect your company from serious legal and financial repercussions.
The business law experts at Lambert & Jakob can provide the professional guidance and support you need to deal with debt collection issues quickly and effectively. We are the leading civil litigation firm in our area. To set up your initial consultation, call us today at 713-640-5700.