Before September 20, 1977, debt collection agencies treated consumers like outlaws treated the wild west. Nothing was out of the question when it came to hunting down consumers to pay off outstanding credit card and personal loan balances. Companies responsible for getting back some of the money lost by original creditors frequently threaten consumers with legal action or worse, threaten consumers with bodily harm. They also used the telephone as a weapon to coerce consumers into paying off outstanding debts.
The harassing and intimidating debt collection tactics used by many third party debt collectors became illegal on September 20, 1977, when the United States Congress wrote the Fair Debt collection Practices Act (FDCPA) into federal law. According to the FDCPA, a bill collector cannot threaten you in any way, as well as make repeated phone calls to you at work and at home. The FDCPA also barred the long standing practice of bill collectors contacting third parties regarding consumer debts.
Exceptions to the Third Party Rule
Congress added a few exceptions to the third party provision written into the FDCPA. Debt collection agencies are fully within their legal rights to contact a third party to collect the contact information of consumers. A third party debt collector such as Action Financial Services has the right to call one of your parents to confirm your current address. However, if the company even remotely references your delinquent consumer debt, it can be held legally liable for violating the third party provision of the FDCPA.
In addition, a bill collector is not permitted to contact anyone that is not involved in the original credit card or personal loan agreement. If you were the only person to sign a credit card or a personal loan application, then the company responsible for collecting the consumer debt can only discuss the debt with you.
Blatant Third Party Violations
Despite the passage of the FDCPA, many debt collection agencies continue to contact third parties regarding consumer debts because of one compelling reason: Money. The incredible profit margins generated by debt collection agencies means crossing the legal line established by the FDCPA is a real concern for consumers. A company like Action Financial Services, LLC might call one of your siblings to put enough pressure on you to settle an outstanding debt. If a relative received a phone call from Action Financial Services, LLC, you need to take immediate legal action to protect your financial interests.
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Working with a State Licensed FDCPA Attorney
The most effective way to get a third party debt collector to stop contacting a third party regarding your debt is by meeting with an accomplished consumer protection lawyer. Your lawyer will conduct a thorough review of your case to determine whether there is enough evidence of third party contacts to warrant the filing of a civil lawsuit. Tape recorded phone conversations and original letters detailing FDCPA violations represent the type of physical evidence you need to win an FDCPA case. By hiring a consumer protection attorney, Action Financial Services, LLC will know you are serious about protecting your rights.
Additional Resources
*Disclaimer: The content of this article serves only to provide information and should not be construed as legal advice. If you file a claim against Action Financial Services, LLC, or any other third-party collection agency, you may not be entitled to compensation.