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Fair
Debt Collection Act
People
fail to meet their credit obligations for a number of reasons. Examples
can be unemployment, illness, etc.
The
Federal Fair Debt Collection Practices Act protects every person. Congress
passed this act to protect consumers from harassment by debt collectors.
What Debts are covered?
Personal, family, and household debts are covered under the Fair Debt Collection
Act.
How may a debtor contact you?
A debt collector may contact you in person, by mail, telephone, telegram,
or fax. However, A debt collector may NOT contact a debtor:
- before
8 a.m. or after 9 p.m.
- at inconvenient
or unreasonable places
- at your
place of employment if it is known the employer prohibits such contact
- if an
attorney is known to represent the debtor, the attorney should be contacted
instead
Debt collection practices that are prohibited:
Harassment: Debt collectors may not harass, oppress, or abuse any person.
They may not:
- use threats
of violence or harm against the person, his property or his reputation.
- publish
a list of consumers who refuse to pay their debts, except to a credit
bureau.
- use obscene
or profane language.
- repeatedly
use the telephone to annoy someone.
- telephone
people without identifying themselves
Unfair Practices: Debt collectors may not engage in unfair
practices such as:
- collecting
any amount greater than your debt, unless allowed by law
- making
you accept collect calls or pay for telegrams
- depositing
a post-dated check prematurely
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 attorney’s
fees may also be recovered.
False statements: Debt collectors may not use any false
statements when collecting a debt; such as:
- using
false, deceptive or misleading representations as to their identity,
such as falsely implying they are attorneys or government representatives
- falsely
imply that you have committed a crime or state that you will be arrested
if you do not pay your debt
- misrepresent
the amount of your debt
- misrepresent
the involvement of an attorney in collecting a debt
- indicate
that the papers being sent to you are legal forms when they are not;
or indicate papers that are being sent to you are not legal forms when
they are
- state
that they will seize, garnish, attach, or sell your property or wages
unless they or the creditor intends to do so and it is legal to do so
- give
false credit information about you to anyone
What is the debt collector required to 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.
May 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.
Where can you report a debt collector for an alleged violation of
the law?
Report any problems you have with a debt collector to your state Attorney
General’s office and the Federal Trade Commission.
Federal Trade Commission
Correspondence Branch
600 Pennsylvania, NW
Washington, D.C. 20580
Can you stop a collector from contacting you?
You can stop a collector from contacting you. You have the option of writing
a letter to the collection agency telling them to cease all communications
with you and that you will deal with the creditor directly. This letter
should be sent certified mail with a return receipt requested. The collector
may send the account to an outside agency.
Once the agency receives the letter, they may not contact you again except
to say there will be no further contact. Another exception is that the agency
may notify you if the debt collector or the creditor intends to take some
specific action.
Can a debt collector contact any other person concerning 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 or work. When doing this,
the collector must:
- identify
himself. He must identify his employer only if expressly requested to
do so.
- not reveal
the consumer’s indebtedness to anyone other than the debtor or
his/her attorney.
- not use
a post card or in any way reveal debt collection activity.
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