Third party agencies must adhere to the Fair Debt Collections Practices Act (FDCPA) which protects the consumer from harassment. Among many restrictions, the FDCPA limits hours for phone contact, and limits communication from the agency if the debtor has sent written notification of their wishes not to be contacted. The Act also prohibits agents’ incessant calling with the intent to annoy or harass, and also forbids misrepresentation or deceit. There are other guidelines mandated by the FDCPA, but they only apply to third party agencies. First party agencies can adhere to these rules, but they are not obligatory.

Both types of collection agencies use debt collection software to achieve their goals. Computer technology and debt collection systems are a necessity in the field for successful operations.The debt collection Software used by first or third party agencies often works in a Windows environment allowing for an efficient collections process, as well as the ability to view information to keep track of collections.

Debt collection software systems benefit agencies by merging account information electronically and then coordinating calls, call history and follow ups, and tracking communications such as letters to debtors. Predictive dialer options are also a software feature which increases agent’s ability to speak to the correct person. First and third party agencies are aided in their goal of collecting delinquent funds with the use of debt collection systems.

Grace Enderlein is a freelance writer and editor. “The Use of Debt Collection Systems for First and Third Party Agencies” notes their difference and their use of debt collection software. DAKCS is an accounts receivable management and debt collection software providing agency.