Collection agencies are limited in the scope of what they can do when collecting debt.
The Fair Debt Collection Practices Act (FDCPA) makes it clear that collection agencies cannot send demand letters without an attorney reviewing them. The agency cannot inform a debtor about turning over the matter to the legal department, and most agencies do not have a legal department. When a collection agency states in a letter that it recommended the creditor sue the debtor, this action also violates the FDCPA, because agencies do not have the authority to give legal advice.
By comparison, a New Jersey collections lawyer handling the collection matter can send demand letters directly and does not have to turn matters over to a legal department, because the lawyer is the legal department. Also, it is the lawyer’s job to give creditors legal advice, and a lawsuit may very well be the appropriate legal action to take.
In many instances, when debtors receive demand letters from attorneys, they start making payments on the debt. When payment does not occur, matters can proceed quickly with a New Jersey collections lawyer, who can obtain a judgment and begin enforcement actions, such as wage garnishment, writs of execution and other appropriate actions depending on the nature of the debt.
When relying on a New Jersey collections lawyer, you gain assurance that the actions being taken to collect your debt are within the scope of the law. You also gain the peace of mind of knowing that the matter is in good hands. A law firm can save you time, and in many instances, time is money.