Persons who take out secured loans need to be aware of the laws governing debt collection in the United States. Debt collection efforts in the US fall under a wide variety of state and federal laws.
Debt collection efforts that violate the law are not valid. Individuals with secured loans should be aware of what legal powers debt collectors have.
The legal powers that debt collectors have to collect debt from secured loans in the US are actually quite limited. Generally, a debt collector can take four courses of action to collect a debt.
The actions that legally can be taken to collect debts in the United States include:
There is currently no federal agency charged with enforcing the laws of debt or regulating secured loans. Instead, most consumers will have to hire attorneys to protect their own rights.
The federal government has set up a Consumer Finance Protection Bureau, which might yet be charged with enforcing laws related to consumer secured loans. The scope and powers of this agency have not been established yet, so it has not been determined if the CFPB will enforce laws on debt collection.