What is debt collection law?

Debt collection law is a set of laws that govern how debt collectors and creditors can collect unpaid debts from individuals or businesses. In Iowa, debt collection law is established in Chapter 616 of the Iowa Code and the Iowa Consumer Credit Collection Practices Act. Under Iowa law, debt collectors must obtain a valid license from the Iowa Division of Banking. This license allows them to legally collect unpaid debts. Debt collectors must also abide by the limits set by the Iowa Code. For example, they are not allowed to threaten, harass, or use profane language when communicating with debtors. Debt collection law also dictates how debt collectors pursue unpaid debts. Generally, they must send written notice to the debtor informing them of the debt and the amount. If the debtor does not respond, the debt collector may contact them by phone or mail. If the debtor still does not pay, the debt collector may take legal action. Lastly, debt collection law prohibits unfair practices by debt collectors. For example, debt collectors are not allowed to use false representations or unfair means to collect a debt. Furthermore, debt collectors are not allowed to reveal personal information about a debtor to third-parties without permission. In conclusion, debt collection law is a set of laws that govern the activities of debt collectors in Iowa. These laws establish the rights of both debtors and debt collectors. They also ensure that debt collectors are using fair and reasonable practices when seeking payment.

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What is debt collection law?

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