Debt Collection A to Z: C is for Collection Agency
Under North Carolina law the term “collection agency” has a very specific meaning. It is quite complicated to give a precise definition of the term but groups such as Portfolio Recovery Associates, CACV of Colorado, National Credit Solutions, and NCO Financial Systems would qualify as collection agencies. A collection agency is typically an entity (1) is hired by a company to seek recovery of a debt owed to the company or (2) a company that engages in the purchase of old or charged-off debts and then seeks to recover the debt or a portion thereof. Collection agencies are required to register with the North Carolina Commissioner of Insurance.
There is a North Carolina statute that regulates the conduct of collection agencies in North Carolina and it provides considerable protection for debtors. Among the prohibited actions the deadbeat lists, harassing phone calls, misrepresentation of the nature or amount of the debt, and threats of arrest and jail for failing to pay a debt. Additionally the Fair Debt Collection Practices Act governs the conduct of the collection agency. And the nascent Consumer Financial Protection Bureau regulates collection agencies.
Click here for a few tips on dealing with collection agencies BUT….if you have problems with a collection agency do not try to handle them yourself. Contact an experienced debt collection defense attorney to assess your situations and what options may be available to you.