The Rules and Regulations of Recovering Unpaid Car Debt

The auto industry is booming, and financial institutions are ready to fund car purchases. Since the auto loan is a broad industry and auto loan debt is growing like anything. Here comes the role of a vehicle loan collection agency. With the growth of lending money, the ratio of auto loan defaulters is also growing up.

For the household loan amount, the auto loan amount is merely small, but 90% of car sales are financed from car loans. The financing companies now confront activities of larger volume collection which means the third-party debt collection agencies must be updated and stay up to speed for the ever-changing regulatory landscape and successful debt collection.

The Telephone Consumer Protection Act (TCPA) is for commercial communication (pre-recorded/auto-dialed), and it prevents the use of auto-dialers to wireless numbers, the emergency lines, health care sectors, and similar kinds of places. While doing the telemarketing communications, the FCC regulations seek written consent for communication.

• No unsolicited advertisement transmission to the fax numbers 

• Using auto-dialer for engaging more than one business simultaneously 

• Without the consent of a called party making non-emergency pre-recorded calls to residential numbers

The laws for automotive debt collection would differ from state to state. Every business owner and industry must be careful while expanding their business to multiple states but staying updated on the state laws is crucial since the debt collection agencies may find them under tough scrutiny. Ignorance cannot be a good excuse if you are found doing law violations or breaking the rules and regulations of a state. The laws pertaining to debt collection are mentioned as complex, and you must be aware of that. Depending on your or the debtor’s location, you might be barred from calling debtors at odd hours; you might have guidelines on the steps or actions you want to take or the words or phrases you can use in the process of debt collection.

Harassment - The debt collectors cannot ever threaten, harass, abuse or oppress the debtors, use foul language, do anything obscene or make calls repeatedly with the intention of causing irritation.

False Statements - The debt collectors cannot lie to collect money from the debtors, and this is regarded as making false statements. Some of such statements include mentioning them as representatives of credit report agencies, government representatives, or an attorney, saying that you have made a crime, or misquoting the amount you owe.

Unfair Practices - The debt collectors should not be engaged in any kind of unfair debt collection practices for recovering the owed money, such as collecting interest or money beyond the total amount. If the debtor submits a post-dated check, the collector cannot submit that before the date. The collectors can never take your property or threaten to do unless they have the legal authority and can never contact you with a postcard.

Misleading Threats - The debt collection agency cannot ever threaten the debtors with legal actions that they are not permitted or do not pursue.

Wage Garnishment - The debt collectors do not have legal authorization to do anything with the wages or the bank account without a court order. In such orders, the court orders the employer or the bank to pay the lender the owed debt. 

Misleading Correspondence - The debt collectors are prohibited from making any false information about anyone inclusive of a credit reporting agency or cannot send any forged or false or government document.

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