If you have been harassed by someone regarding a debt, you may be wondering, "what's a third-party collection agency?"
A third-party collection agency is an agency that did not lend you money initially, but is now in charge of retrieving your debt on behalf of the original creditor. Third-party collection agencies typically do not include banks or other financial institutions.
Why Does a Third-Party Collection Agency Matter?
It's important to know if you've been contacted by a third-party collection agency and not an original creditor because the FDCPA does not protect you against original creditors. This means it's legal for your local bank to call you in the wee hours of the night, barring any statewide creditor harassment laws.
A debt collector should legally disclose who he or she is when contacting you, but not to any uninvolved third parties. If a third-party debt collector misleads you in any way, you may be entitled to damages under the FDCPA.
Getting Legal Help
If you have been contacted by a third-party collection agency and believe your rights have been violated, you might be entitled to $1,000, plus additional income for any actual damages you may have incurred. For more information on the FDCPA and how to file suit against a third-party collector, fill out a Free Evaluation to speak with an attorney in your area today.