Debt is a situation that arises with many consumer-retailer transactions. However, in some cases unpaid debt becomes a serious problem forcing some retailers to use collection agencies to gather monies owed to them by consumers. As a result, the Consumer Protection Act includes specific provisions to govern these agencies. Although it requires them to be licensed, it imposes very few restrictions on the manner in which the agencies collect the money.

Question

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The Consumer Protection Act imposes several restrictions on collection agencies to protect consumers, including how and when they can contact consumers, prohibiting abusive practices, and requiring them to validate the debt.

Debt Is a Situation That Arises with Many Consumer-Retailer Transactions