When a debt goes unpaid, it’s important for business owners to know what their legal options are for pursing money owed. A skilled New Jersey commercial collection attorney can help navigate the laws that revolve around this issue.
Who the Fair Debt Collection Laws Cover
The Fair Debt Collections Practices Act covers debt collectors. As your New Jersey commercial collection attorney can explain, this usually means collections agencies, lawyers, or others who regularly engage in debt collection. Usually the creditor himself is not covered by the act, only a third party they engage to collect the debt for them. When in doubt, seek qualified legal advice about your debt collection options.
Types of Debts Covered by Fair Debt Collections Laws
Generally speaking, personal and consumer debt is covered by the Act. When a creditor engages another to collect a debt for them, that collector must be careful to avoid any activity that violates provisions of the Act.
Debt collectors must not engage in harassment, making false statements, threats, or other unfair practices when seeking to collect a debt on behalf of a creditor. Harassment may take the form of excessive phone calls to the debtor’s home or place of business. Calls made must be at reasonable hours, not, for example, in the middle of the night. A debt collector must not threaten a debtor with jail time or property seizures not permitted by law. They must not make false statements or attempt to charge interest that was not part of the original contract. If a debt collector is found to have violated the Act, the debt collector may be subject to steep fines and penalties.
Get Help from a New Jersey Commercial Collection Attorney at Our Firm Today
Talk to an experienced New Jersey commercial collection lawyer about your collections questions. To make an appointment for a first consultation with the law offices of Snellings Law LLC, call 973-265-6100.