Act Regarding Fair Debt Collection Procedures and You

If you get behind in repaying your creditors or if there is an error made on your accounts, you may be contacted by someone who refers to themselves as a "debt collector."

You should be aware that the Fair Debt Collection Practices Act restricts certain methods of debt collection and mandates that debt collectors must treat you fairly in any scenario. This act also demands that debt collectors treat you fairly. Obviously, the law will not wipe off any legal obligations that you now have to pay.

This article addresses some of the most frequently asked questions regarding the Fair Debt Collection Practices Act and provides answers to those questions.

Which obligations are taken care of?

The Act applies to debts that are incurred by individuals, families, and households. This includes money that is owed for the purchase of a vehicle, money that is owed for medical services, and money that is owed for charge accounts.

Who is this person who is collecting debts?

Any person who routinely engages in the process of collecting debts owing to other parties is considered a debt collector. This pertains to attorneys, who often engage in the process of debt collection.

In what ways might a debt collector get in touch with you?

You may be contacted by a collector in the following ways: in person; by letter; by telephone; by telegram; or by fax. However, unless you give the debt collector permission to do so, they are not allowed to call you at inconvenient hours or locations, such as before 8 a.m. or after 9 p.m. A debt collector is not permitted to contact you at your place of employment if the collector is aware that your employer frowns upon such contacts being made.

Is it possible to prevent a debt collector from getting in touch with you?

You are able to prevent a debt collector from getting in touch with you by drafting a letter to the collector and requesting that they cease any communication with you. It is possible that once the debt collector receives your letter, they will not contact you again other than to inform you that there will be no further contact or to inform you that the debt collector or the creditor intends to take some particular action. It is important to keep in mind, however, that writing such a letter to a collector will not result in the cancellation of the debt if you are genuinely responsible for paying it. It is still possible for the original creditor or the debt collector to sue you for the debt.

Is it permissible for a debt collector to discuss your debt with anyone else?

If you have retained legal representation, the debt collector is required to communicate with that attorney rather than with you directly. If you do not have an attorney, a debt collector is permitted to communicate with other individuals, but solely for the purpose of gathering information regarding your place of residence, your telephone number, and your place of employment. It is typically against the law for collectors to make repeated contact with third parties in this capacity. In the majority of instances, the collector may not disclose the fact that you owe money to anyone other than yourself and your attorney.

What information about the debt is required for the debt collector to give you?

The debt collector is required to provide you with a written notice within five business days of the first time they make contact with you. This notice must include the amount of money you owe, the name of the creditor to whom you owe the money, and the steps you should take if you believe you are not responsible for the debt.

If you don't think you owe any money, may a debt collector still get in touch with you and try to collect?

If you write a letter to the collection agency declaring that you do not owe any money within the first thirty days after receiving the written notification, a collector is not allowed to approach you about the debt. Nevertheless, a collector may resume collection efforts if you are provided with evidence of the debt, such as a copy of a bill for the amount that is still outstanding on the account.

What kinds of tactics related to debt collection are not allowed to be used?

It amounted to harassment. You or any third parties that the debt collectors contact are not allowed to be harassed, oppressed, or abused in any way.

As an illustration, debt collectors are not permitted to: make threats of physical damage or violence; publish a list of consumers who refuse to pay their debts (except to a credit agency); use obscene or profane language; or repeatedly use the telephone to irritate someone.

Statements that are not accurate When trying to collect a debt, debt collectors are not allowed to make any representations that are incorrect or deceptive. For instance, debt collectors are not allowed to make any of the following false representations: falsely imply that they are attorneys or government representatives; falsely imply that you have committed a crime; falsely represent that they operate or work for a credit bureau; misrepresent the amount of your debt; indicate that papers being sent to you are legal forms when they are not; or indicate that papers being sent to you are not legal forms when they are.

Debt collectors are also not required to state the following:

You will be arrested if you do not pay your debt; - they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so and it is legal to do so; or - actions, such as a lawsuit, will be taken against you, even though such an action legally may not be taken, or even when they do not intend to take such an action.

Debt collectors are not permitted to:

give fake credit information about you to anybody, including a credit bureau; send you anything that looks like an official document from a court or government agency when it is not; or use a fictitious name. send you anything that appears like an official document from a court or government agency when it is not.

Unfair business techniques are being used. When attempting to collect a debt, debt collectors are not permitted to participate in any actions that would be considered unethical. For instance, collectors are not required to:

Collect any amount that is greater than your debt, unless the law of your state permits such a charge; - use deception to make you accept collect calls or pay for telegrams; - take or threaten to take your property, unless this can be done legally; or - contact you by postcard. collect any amount that is greater than your debt, unless the law of your state permits such a charge.

What kind of influence do you have over the way debts are paid?

In the event that you have many debts to pay off, any payment that you make must be applied to the debt that you choose. It is against the law for a debt collector to attach a payment to a debt that the consumer believes they do not owe.

What options do you have if you suspect a debt collector has broken the law in collecting debts?

Within one year of the date on which the law was broken, you have the legal right to file a lawsuit against a collector in a court of either state or federal jurisdiction. If you are successful in your lawsuit, you may be able to recover not just the money necessary to cover the losses you incurred but also an additional amount of up to $1,000. Additionally, it is possible to collect attorney fees and court costs. A group of individuals may also file a lawsuit against a debt collector in order to receive monetary compensation for damages of up to half a million dollars or one percent of the collector's total net worth, whichever is lower.

Where can you file a complaint against a debt collector for allegedly violating the law?

Please let the office of the Attorney General in your state as well as the Federal Trade Commission know about any issues you have had with a debt collector. Your state likely has its own laws governing the collection of debts, and the office of the Attorney General in your state can assist you in determining your legal standing.