However, for those that are unable to pay their debts on time, it is assured that you are still protected by the United States government.  The Fair Debt Collection Practices Act 101 is a legislation that will prevent lenders from making unduly and unfair collection practices.  These methods to collect the loans from the borrowers are deceptive, threatening and abusive practices that are meant to intimidate and frighten debtors to pay their loans.  It has, as well, been analyzed that regardless of the credit status, the borrower or debtor still has rights.

One of the key points of the Fair Debt Collection Act is that it will regulate the action of the debt collectors on a fair and decent level.  These collectors are defined in the act as the persons who are intermediaries for lending institutions for the sole purpose of collecting the funds for another party.  It is also understood that the collector in itself has no right to get the money from the debtor but will only act as the person to whom negotiations to the transaction be made to.

The Fair Debt Collection clearly states that any collection activity and negotiation to the must be done directly to the concerned debtor and not with another party.  There have been also situations wherein the false and misleading representation of the collectors will frighten the borrower to pay.  This is an act that is prohibited by the Fair Debt Collections Act.  As part of the regulations to debt collection, there has also been a stipulation that any phones calls with regards to the loan should only be done between 8 a.m. until 9 p.m.

Furthermore, the law explicitly states that the calls should not be done on the workplace of the debtor knowing that such an act is prohibited by the employer.  It is also stated within that the laws prohibit the addition of collection fees and interest charges to the loan unless it has been previously indicated in the contract.  As a whole, the intention of the loan will be to prevent any harassment and oppression practices on the part of the collector or the creditor when conducting any collections.  Debtors may be at fault when they are in bad credit histories, but you also have rights as a human being.