What is collection defense law?

Collection defense law is a set of state laws that governs the steps lenders must take before initiating collection activities on past-due debts they are owed. It dictates what kind of debt it applies to, when the debt becomes delinquent, how creditors can contact a borrower, and how they can enforce their right to collect. Collection defense law also protects debtors from certain collection practices, such as harassment and attempts to collect a debt beyond the statute of limitations. In West Virginia, collection defense law is governed by the West Virginia Consumer Credit and Protection Act. This Act requires creditors to provide written notice, including specific details about the debt, within 5 days of initiating collection efforts. Creditors must also provide debtors with a copy of all forms related to the debt, including the original promissory note. Once a debtor has been contacted, the Act requires that the creditor wait at least 20 days before filing a lawsuit. Furthermore, all collection efforts must be made in accordance with the West Virginia Fair Debt Collection Practices Act, which regulates the types of contacts a creditor can make with a debtor. The purpose of collection defense law is to protect consumers from unfair collection practices. When lenders violate the collection defense laws in their state, debtors may bring a lawsuit against the creditor to seek damages. Ultimately, understanding and following the collection defense law in your state is essential for lenders and borrowers alike.

Related FAQs

Are there any defenses to a debt collection lawsuit?
What are the consequences of not paying a debt?
How do I appeal a court decision in a collection defense case?
How do I dispute inaccurate information on my credit report?
What happens if I ignore a letter from a debt collector?
What is the responsibility of a debt collector with regards to debt collection and accuracy of information?
What can I do if a debt collector is misrepresenting themselves?
What type of damages can I recover for a collection defense lawsuit?
What is the statute of limitations in a collection defense law case?
What is the Fair Credit Reporting Act (FCRA)?

What is collection defense law?

Related FAQs

Related Blog Posts