No one is free from becoming indebted, but people with impulsive behaviors and compulsive buyers are the most prone to fall into great amounts of debt. After this happens, specialized agencies start the collection process.

The most common collectors are attorneys who, on a regular basis, collect debts. According to the 1986 amendment of the Fair Debt collection Practices Act, said lawyers are considered debt collectors.

Now we know who the collector is. So who is the debtor? A person who:

• owes a personal loan
• uses a credit card (let us presume that is a excessive use)
• is actually paying a home loan (home mortgage)

By law, how does the debt collection procedure work?
The collection responsibility rests on the hands of the designated attorney. How he collects money from the debtor is also his responsibility. No forceful means will be allowed. The Fair Debt Collection Practices Act demands a fair treatment to any debtor. Lawyers cannot use any threatening method to collect the money involved.

Can a lawyer or collection agency harass me?
By law, no lawyer or collection agency can harass a debtor. According to the law, any debt collector is restricted from exercising any threat of violence or causing any damage to a debtor. Debt Collection agencies are not forbidden to publish any debtor's name in public nor can they harass debtors by phone. People should know that the law is on their side.

Debt collectors are not supposed to:

• collect an amount greater than the original debt
• previously deposit a post-dated check
• introduce themselves as government workers
• take away your house or property or threaten to do so.
• make false statements on government policies
• force you to accept calls

Whenever a debt collector brakes the law by practicing any of the aforementioned activities, punishment can be severe. You could also use these lawyers, and you have one year to start the process. After winning the lawsuit, you recover the money because of all the damage suffered. You also receive the court costs and attorney fees. The law may protect you from harassment from lawyers, but it will not prevent you from paying your debts.

Charges for debt collection services of an expert attorney would range from hourly fee system or at least a third of the amount he or she has recovered from the party owing you money. Meanwhile, some attorneys may charge both these kind of payment systems.

Usually debt collection attorneys have an imposed minimum fee while others require a minimum amount of the debt that need to be collected. Additional payments to the attorney may compose of court-related charges and fees in connection of a lawsuit. If you intend to pursue a court ruling, then you would have to prepare for these.

However, if you are not interested in taking your customer or client to court because of the unsettled account or overdue debt, you may still have to consult with an attorney for his / her professional legal advice although without the intention of hiring his or her legal representation. You have to weigh down your options seriously before finally hiring a lawyer to handle your collection problem.

Most of the companies troubled with customers or clients with unsettled accounts usually refer the debt to an agency before turning to the expertise of an attorney once the agency prove to be ineffectual for the job.