What can a bank do to collect a past due debt?
A creditor can try to collect the debt directly. The collection process usually starts by telephone calls, followed up with letters. Ultimately, most creditors will end up turning the obligation over to a collection agency. The collection agency will usually be paid a percentage of up to 50% of whatever they collect on a debt. The Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law doesn’t erase any legitimate debt you owe. Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care or for charge accounts. However, a business or commercial loan may not be covered by the Act. The Act specifically applies to any debt collector, who is defined as a person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis. A collector can contact you in person, by mail, tel
