Fair Debt Collection Practices Act Protects Consumers
If you're dealing with harassment from creditors or debt collectors, it's important to know your rights.
Federal law protects consumers from common debt collection tactics that cause harassment or embarrassment, and give consumers the chance to fight back.
The Fair Debt Collection Practices Act (FDCPA) outlines rules for third party debt collectors, such as collection agencies or debt buyers. Original creditors, such as a hospital's billing department, are not bound by the FDCPA.
While the FDCPA does provide some relief for individuals dealing with debt collectors who are abusive or misleading, it doesn't provide the tools to legally end a debt that is too expensive to repay.
For debts that are burdensome and unbearable, bankruptcy is a federal program of debt relief that may allow an individual to permanently end the debt. Could bankruptcy be right for you? Connect with a local attorney today for a free case evaluation.
Unfair Debt Collect Practices
The FDCPA prohibits third-party debt collectors from:
- Calling at inconvenient hours. Typically this means not earlier than 8:00 am and not later than 9:00 pm.
- Continuing communications after a request to stop. A consumer can give written notice that he or she refuses to pay the debt or simply request that all communications with him or her cease, the collector must abide. Communication after written notice is only permitted to advise that collection efforts are being terminated or that other permitted remedies, such as a lawsuit, will begin.
- Calling continuously and repeatedly. Frequent calls with the intent to annoy and harass are prohibited, although the law isn't clear where that line is reached.
- Communication when the consumer is represented by an attorney. Once the debt collector is notified that the consumer is represented by an attorney, all contact must be directed to the lawyer's office.
- Communication after the person has filed bankruptcy. Once the debt collector has been notified of the bankruptcy, all attempts to contact the person directly must stop.
- Communication with consumers at work. If a debt collector has been advised that personal calls are prohibited by the employer, communications at the place of employment must halt.
- Communication regarding debts for which validation has been requested. If a consumer sends a written request for verification of the amount and origin of the debt, communication must cease until debt collector provides the requested verification.
- Misrepresentation or deceit. Misrepresenting or deceiving the debtor is strictly prohibited. Debt collectors may not lie about who they are when calling or about their authority to punish the debtor for non-payment.
- Publishing the person's name or address on a "debtor" list.
- Seeking unreasonable amounts. Demands for money not agreed to in the initial contract the consumer agreed to are not permitted.
- Using abusive or profane language.
- Communicating with third parties, other than the consumer's spouse or attorney, except to
verify the debtor's current contact information.
- Contacting consumers using media that could be embarrassing, such as a post card, or using
any language or symbol on an envelope that communicates the nature of the letter.
- Providing false information to credit reporting agency or threatening to do so in the process of collection.
Fair Debt Collection Practices
The FDCPA requires third-party debt collectors to:
- Identify themselves, their organization and the reason for contacting the consumer during
every communication.
- Notify the consumer any information gleaned from the communication will be used in efforts to collect a debt.
- Provide the name and address of the original creditor.
- Notify the consumer of their right to dispute the debt, either in part or in full. This notice must be provided within 5 days of the first contact with the consumer, which starts 30 day period in which the consumer may demand verification of the debt from the debt collector.
- Verify a debt as requested. If the consumer demands verification of the debt within the 30 day window, the debt collector must either mail the consumer the requested verification information (the amount owed and the name and address of the original creditor) or cease collection efforts altogether. Disputed debts must be reported as such to the credit reporting agencies.
- Bring a lawsuit in a proper venue. If a debt collector initiates a lawsuit, it must be filed either in the state where the consumer lives, or where the consumer signed the contract with the original creditor.
Protect Your Rights with an Attorney
Dealing with debt collectors can be intimidating, even when they're following the FDCPA guidelines. By working with an attorney, you may be able to put an end to calls to your home, office and cell phone. A bankruptcy attorney can help you determine if bankruptcy is the right solution for you to permanently get out from the debt.
Speak with an attorney in your area for more information. You can arrange a free, no-obligation consultation today by filling out the quick case review form below. Take action now to get the help you seek.