Creditors’ Rights in California during Debt Collection

Struggling to obtain the repayment of debt is a common problem, sadly.  Regardless of the type of debt creditors seek to collect — be it business or consumer debt —  it is essential that creditors understand what is allowed, and prohibited, following debtors’ failures to pay.

During the debt collection process, California creditors must follow the restrictions contained in both the federal Fair Debt Collection Practices Act and California’s Rosenthal Fair Debt Collection Practices Act.  Listed below are some of the key rules contained therein that creditors should be aware of prior to initiating the collection process.

Creditors are afforded the following rights while attempting to collect an unpaid debt:

  • May add interest to the unpaid debt in accordance with specific laws.
  • May file a lawsuit against the debtor.
  • May solicit information from others to determine where the debtor resides.
  • Under certain circumstances, may call the debtor’s employer to confirm employment, determine medical coverage, or follow up on wage garnishment action if there is a corresponding court judgment.

Creditors are prohibited from the following actions while attempting to collect an unpaid debt:

  • Cannot claim to be attorney if in actuality they are not.
  • Cannot talk about the details of your debt with others.
  • Cannot make calls before 8 a.m. and after 9 p.m.
  • Cannot threaten or harass debtors or use obscene language.

Creditors often have questions regarding the debt collection process in California.  The Wallin Firm attorneys have successful aided creditors in Orange County, Los Angeles County, Riverside County and throughout California in resolving their collection and bankruptcy matters.  We are happy to assist you.

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