Two Types of Collection Agencies
There are two types of collectors: Third party and first party.
Third party collectors are collecting on behalf of the original creditor, like the bank or a dentist. The legislation and all of the rules about collections, e.g. when they are allowed to call, apply to them.
First party collectors actually purchase accounts from creditors (or other collectors) so that they own the debt. In other words, the bank or the dentist is no longer owed anything. Now the money is owed to the first-party collector. The rules do not apply to them. They can call whenever they like, as often as they like. They can call relatives and employers, at midnight if they want.
First party collectors are usually more aggressive and more difficult to deal with. If you are being harassed by a collector, try to find out if they have purchased the debt, or if they are acting on behalf of a bank (or a dentist). This will tell you if they are breaking the rules or if they are within their rights. If they have, in fact, purchased the debt, you may wish to talk to a Trustee in Bankruptcy to talk about your options.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.
