The document discusses the portrayal of debt collectors and clarifies misconceptions about their practices, emphasizing that they cannot seize property unless they win a lawsuit. It explains the process of debt collection, the legal framework provided by the Fair Debt Collection Practices Act (FDCPA), and outlines the rights of debtors. The article encourages individuals to seek help from collection agencies and to understand their rights when being contacted about debts.

1. Cedars business service: laws, process
and collection method of debt collectors
Most movies and TV series portrays debt collectors as individuals with cold-stoned
people who will throw kids into the street if you have missed your payments. Such
dramatic sequence makes debtors nervous when a debt-collecting agency makes
contact with them.
I am here to tell you that you have nothing to worry about if you were contacted by a
collector. The collection agency doesn’t abuse their powers or seize your property if you
missed the last few payments. They are not allowed to until you refuse to pay the debt
and they win a lawsuit against you.
See, the misconception people have about collectors stops them from taking help from
these agents. They can help you make a strategic plan to pay all your debt without
going bankrupt.
Let’s understand more about this industry.
What is a Debt Collecting Agency?
A debt collector wants to collect the money that the debtor legally borrowed from the
creditor. That money rightfully belongs to the creditor, and these third-party collectors
help recover the debt when the lender is unable to do so.
Most companies hire debt collector as they don’t have the resource or a collecting cell in
their firm. But there are companies who have their own debt collecting department.
Creditors hire debt collectors when:
● The creditors are unable to collect the unpaid loans.
● The debtor missed the last few payments
● Or the debt exceeded the 180 days (credit card) or 60 days limit (other loans).

2. ● The lender can hire a collector or sell their old debts to the agent.
Debt collecting agency- work process
When a lender hires a collector, they get a cut of about 25%-45% from the total amount
recovered by them.
Here is the process:
They can contact you through:
● E-mails
● Phone calls at home or office
● Letters
● Contacting friends or family
They can also perform their own investigation is they are unable to contact the borrower
through the above methods.
A collector is well within his rights to assess the properties and bank account of the
delinquent. But they cannot seize the property or take the debt amount from the bank.
If the borrower refuses to pay the debt, the collecting agency like Cedars business
services can file a lawsuit against them. Moreover, they update their credit score by
decreasing it, which can become a problem later when they want to take a loan.
Debt collecting laws
Cedars financial services and other reputable debt collectors follow the rules set by the
FDCPA. The Fair Debt Collection Practices Act ensures that all third-party agencies
handle debt collection legally.
According to this act, a collector is not allowed to:
● Discuss your debt in public or with your friends, neighbors, and family.
● Insult the borrower or abuse him/her.
● Call the debtor after or before a certain time unless the delinquent has given the
collector permission to do so.
● Contact the debtor, if he/she has an attorney that is handling their debt.
● Contact the debtor at his/her workplace.

3. When they contact you: (FDCPA rules)
● They have to tell you the name of the creditor, the amount of your debt and how
you can verify the debt.
● They have to show you an identification card and tell you the name of the
company that you work for.
This act covers only third-party collectors and lawyers who recover debts. The original
creditors don't follow these rules.
How can you take legal action against debt collectors?
● Under the FDCPA, you can take legal action against a collector who is not
following the above-mentioned rules or is threatening you.
● In such a case, you can file a lawsuit against the agent or agency. If you can
provide evidence and the judge rules in your favor, you can claim some amount
(varies from country to country).
● Also, collectors and debtors can solve such issues outside of the court in
arbitration.
Most debt collecting agencies like Cedars financial services aims to protect the
reputation of the creditor and help you pay off your loans. The above article’s main
agenda is to ensure that individuals know their rights and limitation of the collectors. In
all, it is a legal business, and if you work mutually, it can benefit you too.