Collection agencies’ active participation in collecting debts from vulnerable U.S. debtors has increased in recent years. These agencies employ illegal means to collect debt from borrowers. With the rising numbers of complaints from the victims of these agencies, the federal government was moved to enact the Fair Debt Collection Practices Act to prevent creditor harassment. According to the FDCPA, debt collectors are forbidden from oppressive and unfair collection practices, using abusive language, threaten

Under the Rosenthal Fair Debt Collection Practices Act (RFDCPA), consumers have legal rights which protect them from debt collectors. The RFDCPA was established to protect consumers against unlawful debt collections by debt collectors in California. While the RFDCPA is similar to the federal FDCPA, it differs in some aspects.

All debt collection agencies, and debt collectors employed by these agencies, are governed and regulated by the Fair Debt Collection Practices Act (FDCPA). The FDCPA is a federal statute enforced by the Federal Trade Commission (FTC) and private attorneys and litigants to ensure fair debt collection.

In the commercial collection industry, every debtor is a potential source of profit. Anybody might need to borrow money for the purpose of business. Any amount of loan is as important as the other. In fact, small borrowers form 30% of annual turnover in the financing industry. Such borrowers include: