Advice Tax and Business Services Outsource HR Affiliate Program Community Resources Know the Collection Laws When you are looking to collect delinquent accounts, you must comply with laws governing collection practices including the Federal Trade Commission Act and the Fair Debt Collection Practices Act. These laws make it illegal to use unfair or deceptive practices to collect a debt.
Many states also have their own laws governing collections.
Speak with your attorney to find out the local regulations you need to comply with. Failing to comply with collections laws puts you and your business at risk. For example, a debtor can sue you for libel or harassment, and perhaps collect more than he or she owes you in the first place. Pretending to be someone you are not. For example, you cannot claim to be a law enforcement official or imply that you are an attorney.