Your Rights under the
Fair Debt Collection
Practices Act
Most people find that once they start falling behind on their payments,
calls and harassment start coming in from various collection companies
that the debt is owed to. Many of these bill collectors are under a
lot of pressure from the company that they work for to recover the money
and are normally paid fairly well for doing so.
Although most collectors are respectful and take care to follow guidelines;
we regularly hear horror stories of collection tactics by unscrupulous
collectors that will say and do almost anything to recover the money.
One such situations was a collector telling a woman struggling to put
food on the table that they were going to put her mother in prison and
sell her house because she was not making the payments. Obviously this
person was very upset until we explained that there is no such thing
us debtor's prison in America and they could not just come and sell
the house without taking legal action.
Whatever your situation, you should know that the Fair Debt Collection
Practices Act requires that debt collectors treat you fairly and
use only legal methods of debt collection. Of course, the law does not
forgive any legitimate debt you owe.
This article answers commonly asked questions about your rights under
the Fair Debt Collection Practices Act.
What debts are covered?
Personal, family, and household debts are covered under the Act. This
includes money owed for an automobile purchase, medical care and charge
accounts.
Who is a debt collector?
A debt collector is any person, other than the creditor, who regularly
collects debts owed to others. Under a 1986 amendment to the Fair
Debt Collection Practices Act, this also includes attorneys who
collect debts on a regular basis.
How may a debt collector contact you?
A collector may contact you in person, by mail, telephone, telegram,
or Fax. However, a debt collector may not contact you at unreasonable
times or places, such as before 8 a.m. or after 9 p.m, unless you agree.
A debt collector also may not contact you at work if the collector knows
that your employer disapproves.
Can you stop a debt collector from contacting you?
You can stop a collector from contacting you by writing a letter to
the collection agency telling them to stop. Once the agency receives
your letter, they may not contact you again except to say there will
be no further contact. The agency may notify you if the debt collector
or the creditor intends to take some specific action.
Can a debt collector contact anyone else about your
debt?
If you have an attorney, the debt collector may not contact anyone
other than your attorney. If you do not have an attorney, a collector
may contact other people, but only to find out where you live and work.
Collectors usually are prohibited from contacting such permissible third
parties more than once. In most cases, the collector may not tell anyone
other than you and your attorney that you owe money.
What must the debt collector tell you about the debt?
Within five days after you are first contacted, the collector must
send you a written notice telling you the amount of money you owe; the
name of the creditor to whom you owe the money; and what action to take
if you believe you do not owe the money.
Can a debt collector continue to contact you if you
believe you do not owe money?
A collector may not contact you if, within 30 days after you are first
contacted, you send the
collection agency a letter stating you do not owe money. However, a
collector can renew collection activities if you are sent proof of the
debt, such as a copy of a bill for the amount owed.
What types of debt collection practices are prohibited?
Harassment: Debt collectors may not harass, oppress, or abuse
anyone. For example, debt
collectors may not:
1) Use threats of violence or harm against the person, property,
or reputation;
2) Publish a list of consumers who refuse to pay their debts (except
to a credit bureau);
3) Use obscene or profane language;
4) Repeatedly use the telephone to annoy someone;
5) Telephone people without identifying themselves;
6) Advertise your debt.
False Statements: Debt collectors may not use any false statements
when collecting a debt. For example, debt collectors may not:
1) Falsely imply that they are attorneys or government representatives;
2) Falsely imply that you have committed a crime;
3) Falsely represent that they operate or work for a credit bureau;
4) Misrepresent the amount of your debt;
5) Misrepresent the involvement of an attorney in collecting a debt;
6) Indicate that papers being sent to you are legal forms when they
are not;
7) Indicate that papers being sent to you are not legal forms when
they are.
Debt collectors also may not state that:
1) You will be arrested if you do not pay your debt;
2) 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;
3) Actions, such as a lawsuit, will be taken against you, which legally
may not be taken, or which they do not intend to take.
Debt collectors may not:
1) Give false credit information about you to anyone;
2) Send you anything that looks like an official document from a court
or government agency
when it is not;
3) Use a false name.
Unfair Practices: Debt collectors may not engage in unfair practices
when they try to collect a debt. For example, collectors may not:
1) Collect any amount greater than your debt, unless allowed by law;
2) Deposit a post-dated check prematurely;
3) Make you accept collect calls or pay for telegrams;
4) Take or threaten to take your property unless this can be done
legally;
5) Contact you by postcard.
What control do you have over payment of debts?
If you owe more than one debt, any payment you make must be applied
to the debt you indicate. A debt collector may not apply a payment to
any debt you believe you do not owe.
What can you do if you believe a debt collector violated
the law?
You have the right to sue a collector in a state or federal court within
one year from the date you believe the law was violated. If you win,
you may recover money for the damages you suffered. Court costs and
attorneys fees also can be recovered. A group of people also may sue
a debt collector and recover money for damages up to $500,000, or one
percent of the collectors net worth, whichever is less.
Where can you report a debt collector for an alleged
violation?
Report any problems you have with a debt collector to your state Attorney
Generals office and the Federal Trade Commission. Many states have their
own debt collection laws and your Attorney Generals office can help
you determine your rights.
Summary
The following actions are illegal:
• A debt collector calls you at work and knows that it is inconvenient
or that your employer forbids it.
• A debt collector calls you before 8:00 am or after 9:00 pm
in your time zone.
• A debt collector makes an excessive number of phone calls
to annoy or harass you.
• A debt collector knows that an attorney, whose contact information
is known or is easy to locate, represents you and the debt collector
continues to dun you.
• A debt collector tells a person other than you, your spouse,
or your attorney that you owe money. (If you are a minor, the debt
collector can tell your parents or guardians about the debt) Debt
collectors can only communicate with other people to obtain contact
information about you.
• A debt collector misrepresents the amount, character, or legal
status of a debt.
• A debt collector gives others credit information about you
that is false, or should be known to be false.
• A debt collector fails to honor your dispute or cease communication
rights.
• A debt collector threatens to take your property or garnish
your wages if this action would not be legal or if the debt collector
does not intend to do it. Your property can not be taken and your
wages can not be garnished without a court order (judgment).
• A debt collector uses, or threatens to use, violence or any
other illegal means to harm you, your family, your reputation, or
your property.
• A debt collector uses profane or obscene language in communicating
with you.
• A debt collector threatens you with criminal prosecution or
implies that you have committed a crime. Debt and credit issues are
matters of civil law, not criminal law.
• A debt collector tricks you into accepting charges for collect
calls, telegrams, C.O.D.'s, etc.
• A debt collector cashes, or threatens to cash, a post-dated
check before the date written on the check, if the check is post-dated
by 5 days or more.
• A debt collector does not give 3 to 10 days advance notice
before cashing a check that is post-dated by 5 days or more.
• A debt collector claims to be an attorney or sends a letter
made to look like it is from an attorney (unless the debt collector
really is an attorney).
• A debt collector sends a letter that is made to look like
a government or court document when it isn't.
• A debt collector sends a government or court document that
is not recognizable as such.
• A debt collector threatens any action against you that is
not legally feasible or that the debt collector does not intend to
take.
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