Important Ways To Identify Legitimate Debt Collection Activity In Wisconsin

MADISON, Wis., Aug. 22, 2013 /PRNewswire-USNewswire/ -- In response to a recent consumer alert about bad debt collection practices by the Wisconsin Department of Financial Institutions (WDFI), the Wisconsin Collectors Association offers the following: 

"Unscrupulous scams hurt Wisconsin consumers and unnecessarily impedes legitimate debt collection efforts," said Wisconsin Collectors Association President Tina Hanson. "The recovery of consumer debt is vitally important to our local, state and national economies.  Those who purposely violate the law to exploit Wisconsin consumers should be held fully accountable for their actions."

In addition to exceptional regulatory oversight of the debt collection industry provided by WDFI and Wisconsin state law, the federal Fair Debt Collection Practices Act (FDCPA) outlines several important items that consumers can use to discern a legitimate attempt to recover a debt.

• A debt collector may only contact a consumer at convenient times, which is defined as after 8 a.m. and before 9 p.m. in your time zone unless a different time is arranged with the consumer. Further, a debt collector may not contact consumers at their place of employment after having been advised that it is unacceptable or prohibited by the employer.
• A debt collector may not reveal or discuss the nature of debts to anyone other than the consumer in question (other than the spouse or attorney).
• For debt collection communications, a debt collector must disclose its identity to the consumer and notify the consumer, that the communication is from a debt collector, and (in the initial communication) that any information obtained will be used to effect collection of the debt.
• A debt collector may not make false representation and may not threaten to take action (e.g., lawsuit, jail, garnishment, etc.) against a consumer if they don't actually intend to seek such action.
• A debt collector must notify consumers of their right to dispute the debt, in part or in full, with the debt collector. The notice is required to be sent by debt collectors within five days of the initial communication with the consumer and the consumer has 30-days to request verification of the debt from the debt collector.
• A debt collector must provide verification of the debt if the consumer sends a written dispute or request for verification within the 30-day time period.

In addition, Wisconsin consumers should take great care when giving out information including a credit card, bank account or Social Security number over the phone and online until certain of the authenticity of the other party.  Consumers should monitor accounts and immediately report any suspicious or unauthorized purchases to the bank or credit card provider, as well as monitor their credit report.  If a consumer believes their identity has been stolen, contact the local police department and visit www.ftc.gov/idtheft for information on what to do.

"Debt collectors are not an enemy of consumers," Hanson said.  "We are advocates for protecting consumer rights while balancing the ability to recover rightfully owed obligations that maintain America's credit-based economy." For more information about working with a debt collector visit www.askdoctordebt.org.

The Wisconsin Collectors Associationis a State Unit of ACA International (www.acainternational.org),the comprehensive, knowledge-based resource for the credit and collection industry. Founded in 1939, ACA brings together nearly 5,000 members in the United States and abroad, and their more than 300,000 employees, including third-party collection agencies, asset buyers, attorneys, creditors and vendor affiliates. 

Contact:Mark Schiffman (952) 259-2124 schiffman@acainternational.org

SOURCE Wisconsin Collectors Association