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Debt
Collectors Bound by Fair Debt Collection Act
This Act
covers what debt collectors may and may not do and your rights as a
debtor.
When you take
out a loan or borrow from a credit card company by charging purchases on
those cards, you create debt, which makes you a debtor. If you fail to pay
that debt in a timely manner, you will become the target of a debt
collector.
Though it is
unpleasant to be contacted by debt collectors, they do have a right to try
and collect from you what you owe. On the other hand, they must treat you
fairly when trying to collect the debt. The Fair Debt Collection Act
covers how a debt collector must treat you when attempting to collect the
money you owe. The act does not erase the debt, it only dictates what the
collectors may and may not do in trying to collect on your debt.
Are all
debts covered by this act?
Household, personal, and family debts are addressed by this act. An
example of this kind of debt is medical bills, auto loans, or charge
accounts.
Who is
considered a debt collector?
A person or firm, other than the original creditor, who regularly collects
money owed to creditors.
In what
ways may a collector make contact with me?
Collectors may contact you in person, through the mail, with a telegram,
or a fax. This contact may only take place at reasonable times or places,
usually defined as between the hours of 8 a.m. and after 9 p.m., unless
you agree to be contacted at other times. A collector may not contact you
at work if the collector knows that your employer disapproves.
Is there
any way to keep a debt collector from contacting me?
If you write a letter to the collection agency telling them to stop, they
may not contact you again except to say that there will be no more contact
or to notify you that the collector intends to take some particular action
against you.
Can the debt
collector contact other people about the money I owe?
If you have an attorney, collectors may contact only your legal
representative. If you do not have an attorney, they may contact other
people, but only to find out where you live and work, but must not
disclose that you owe money.
What
information must the collector tell you about the debt?
The collector must give you written notice, within five days of first
contacting you, how much money you owe, who you owe it to, and what to do
if you don’t think you owe the money.
Can the
collector continue to contact me regarding the debt if I do not believe I
owe the money?
If you do not believe you owe the money, you should send a letter to the
collection agency within 30 days of being contacted by the collector. In
the letter you should explain your position, that you do not believe you
owe the money. However, if the collector sends you proof of the debt they
may instigate further contact.
Are debt
collectors allowed to harass, or otherwise abuse me?
No, debt collectors may not harass, oppress, or abuse anyone. They may
not:
* use threats
of violence or harm against the person, property, or 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;
* advertise your debt.
False
statements. Debt collectors may not use any false 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;
* misrepresent the involvement of an attorney in collecting a debt;
* indicate that papers being sent to you are legal forms when they are
not;
* indicate that papers being sent to you are not legal forms when they
are.
Debt
collectors are also forbidden to 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;
* 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:
* give false
credit information about you to anyone;
* send you anything that looks like an official document from a court or
government agency when it is not;
* 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 allowed by law;
* deposit a post-dated check prematurely;
* make you accept collect calls or pay for telegrams;
* take or threaten to take your property unless this can be done legally;
* contact you by postcard.
If I make
payment to the debt collector for more than one debt how is the payment
allocated?
Any payment you make must be applied to whichever debts you indicate. The
collector may not apply a payment to a debt you do not believe you owe.
What
recourse do I have if I feel the debt collector violated the law?
You can sue the debt collector in federal court within one year from the
date you believe they violated the law. If you win, you may recover
attorney’s fees and damages. If a group of individuals sue you may
recover damages up to $500,000 or one percent of the collectors net worth,
whichever is less.
For more
credit related acts, click on the links below:
[
Credit Main | Debt
Collection Act |
Equal
Credit Opportunity |
Credit
Billing Act |
Credit
Repair ]
[ Credit
Bureau | Credit
Reporting ]
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