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Federal Trade Commission Act
Fair Credit Reporting Act

The Act (Title VI of the Consumer Credit Protection Act) protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act. Companies that provide information to consumer reporting agencies also have specific legal obligations, including the duty to investigate disputed information. In addition, users of the information for credit, insurance, or employment purposes must notify the consumer when an adverse action is taken on the basis of such reports. The Fair and Accurate Credit Transactions Act added many provisions to this Act primarily relating to record accuracy and identity theft. The Dodd-Frank Act transferred to the Consumer Financial Protection Bureau most of the rulemaking responsibilities added to this Act by the Fair and Accurate Credit Transactions Act and the Credit CARD Act, but the Commission retains all its enforcement authority.

The debt collector may be part of the creditor’s company or a third party like an attorney or collection agency that purchased your debt. Their job is to get you to pay the amounts you owe. They get paid when you pay your debt. Debt collectors have a legal right to try to collect on the unpaid debt because you breached the original contract saying you’d repay the debt. They often try to do this by sending letters and, within reason, making phone calls. They can also send text messages and emails.

If you’ve been contacted by a debt collector, they’ve provided you with a verification of the debt, and you continue to ignore the collection activities, they can take legal action and sue you to reclaim that money. If you are sued, you will receive a summons and complaint from the court. It’s important to open and respond to this summons or you may lose your case by default. If the debt collector wins the lawsuit, they can take further collection action, like withholding or garnishing a portion of your paycheck. With a court order, they could also take money from your bank account. This is known as a bank levy.

Book a consultation today with CSF debt collection advisor who can assist you in rectifying your debt collections issues. 

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