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Fair Debt Collection
If you use credit cards, owe money
on a personal loan, or are paying on
a home mortgage, you are a "debtor."
If you fall behind in repaying your
creditors, or an error is made on
your accounts, you may be contacted
by a "debt collector."
You should know that in either
situation, the Fair Debt Collection
Practices Act requires that debt
collectors treat you fairly and
prohibits certain methods of debt
collection. Of course, the law does
not erase any legitimate debt you
owe.
This brochure answers commonly asked
questions about your rights under
the Fair Debt Collection Practices
Act.
Who
is a Debt Collector?
A debt collector is anyone, other
than the original creditor, who
regularly collects debts for others.
Typically a Collection agency but it
also includes attorneys who
regularly collect debts for others.
How May a Debt Collector Contact
You?
A debt collector may contact you in
person, by mail, email, telephone or
telegram. However, it can’t be at
inconvenient times or places, such
as before 8 a.m. or after 9 p.m. A
debt collector may not contact you
at work if your employer
disapproves. A debt collector may
not contact you or a third party if
the collector knows that you have
retained an attorney.
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What debts are covered?
Personal, family, and household
debts are covered under the Act.
This includes money owed for the
purchase of an automobile, for
medical care, or for charge
accounts.
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
inconvenient 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 of such
contacts.
Can you stop a debt collector from
contacting you?
You can stop a debt collector from
contacting you by writing a letter
to the collector telling them to
stop. Once the collector receives
your letter, they may not contact
you again except to say there will
be no further contact or to notify
you that the debt collector or the
creditor intends to take some
specific action. Please note,
however, that sending such a letter
to a collector does not make the
debt go away if you actually owe it.
You could still be sued by the debt
collector or your original creditor.
May a debt collector contact anyone
else about your debt?
If you have an attorney, the debt
collector must contact the attorney,
rather than you. If you do not have
an attorney, a collector may contact
other people, but only to find out
where you live, what your phone
number is, and where you work.
Collectors usually are prohibited
from contacting such 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.
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 receive the
written notice, 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
you or any third parties they
contact.
For example, debt collectors may
not:
use threats of violence or harm;
publish a list of consumers who
refuse to pay their debts (except to
a credit bureau);
use obscene or profane language; or
repeatedly use the telephone to
annoy someone.
False statements.
Debt collectors may not use any false or misleading statements when
collecting a debt. For example, debt
collectors may not:
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 also may not state
that:
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, when such action
legally may not be taken, or when
they do not intend to take such
action.
Debt collectors may not:
give false credit information about
you to anyone, 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 false name.
Unfair practices. Debt collectors may not engage in unfair practices when they try
to collect a debt. For example,
collectors may not:
collect any amount greater than your
debt, unless your state law permits
such
a charge;
deposit a post-dated check
prematurely;
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.
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
the law was violated. If you win,
you may recover money for the
damages you suffered plus an
additional amount up to $1,000.
Court costs and attorney' s 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
collector' s 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 General' s office and the
Federal Trade Commission. Many
states have their own debt
collection laws, and your Attorney
General' s office can help you
determine your rights.
The FTC works for the consumer to
prevent fraudulent, deceptive and
unfair business practices in the
marketplace and to provide
information to help consumers spot,
stop, and avoid them. To file a
complaint or to get
free information on consumer issues,
visit
www.ftc.gov or call
toll-free, 1-877-FTC-HELP
(1-877-382-4357); TTY:
1-866-653-4261. The FTC enters
Internet, telemarketing, identity
theft, and other fraud-related
complaints into
Consumer Sentinel, a
secure, online database available to
hundreds of civil and criminal law
enforcement
agencies in the U.S. and abroad
Can You Stop a Debt Collector from
Calling You?
Yes, you may stop a debt collector
from calling you by informing them
in writing within 30 days after his
first contact. Once you tell a debt
collector not to call you, the debt
collector can no longer do so
except, to tell you that there will
be no further calls.
What Types of Debt Collection
Practices are Prohibited?
A Debt Collector may NOT:
Tell anyone including friends,
relatives or neighbors that you owe
money;
Send or put anything on an envelope
that identifies the writer as a debt
collector;
Use threats of violence to harm
anyone or anyone’s property or
reputation (i.e. cannot tell you
that you will go to jail or be
arrested;
Falsely imply that the debt
collector represents the United
States government or any state
government;
Use any false name;
Falsely imply that the debt
collector is an attorney or
represent that papers are legal
forms, when they are not;
Falsely imply that you committed any
crime;
Falsely represent that the debt
collector operates or works for a
credit bureau; or
Falsely give CREDIT INFORMATION
about you to anyone.
A debt collector must be FAIR in
attempting to collect any debt.
For example, a debt collector cannot:
Collect any amount
greater than the amount of your
debt, unless allowed by law;
Deposit a postdated check before the
date written;
Make you accept collect calls or pay
for telegrams.
What Can You do if the Debt
Collector Breaks the Law?
You have the right to sue a debt
collector in a state or federal
court within one year from the date
the law was violated. You may
recover money for the damage you
suffered. Also, under the law, they
have to pay and attorney fees or
costs, you don't. |
