If a creditor has access to your bank account, you can be pretty confident that the creditor is going to collect what it’s owed. This means that you should never give a creditor your bank account information. Most debt collectors will ask you to pay this way, and you should not do it.

Can creditors find out where you bank?

A creditor can merely review your past checks or bank drafts to obtain the name of your bank and serve the garnishment order. If a creditor knows where you live, it may also call the banks in your area seeking information about you.

How are debt collectors allowed to contact you?

Debt collectors are permitted to contact you by every communication system available – phone, letters, email or text message – but there are rules they must follow or they are in violation of the Fair Debt Collection Practices Act (FDCPA). Those rules include:

What should be included in a debt collection letter?

The following statement should be written within the letter: “This is an attempt to collect a debt. Any information obtained will be used for that purpose. Additional letters must include the following: “This letter is from a debt collection agency.” It is also unlawful for a collector to refer to themselves as a government agency.

When does a debt collector have to give you validation information?

A collector has to give you “validation information” about the debt, either during the collector’s first phone call with you or in writing within five days after first contacting you. The collector has to tell you four pieces of information

When to choose an ethical debt collection agency?

When choosing a debt collection agency for your business, it is important that you choose a company that adheres to ethical collection tactics, especially when sending out collection letters. Under the Fair Debt Collection Practices Act (FDCPA), debtors are protected from illegal collection methods by debt collectors.