Debt collectors got you down? Your wife lost her job, you’re behind on your mortgage, and just when you thought things couldn’t get worse, the debt collectors started calling. You’ve heard stories about unscrupulous debt collectors. What can you do if one of them goes too far? Is there any protection for you as a consumer? 

 

Absolutely! The Fair Debt Collection Practices Act (FDCPA) is intended to eliminate abusive collection practices, promote fair debt collection, and provide a legal remedy when debtors and collectors have problems they can’t resolve on their own. The FDCPA provides guidelines that debt collectors must follow when contacting a consumer. Collectors who work at the bank where you got your mortgage are not covered by the act, but 3^rd party debt collectors, like collection agencies, attorneys, or companies that buy debt after default, must all follow the FDCPA guidelines.  

 

The Act is very clear on what collectors can and cannot do to collect a debt, your rights as a consumer, and the remedies and penalties available if collectors break the law. Some states have developed even more specific guidelines for collectors. To see if your state is one of them, contact your State Attorney General’s office 

 

· Debt collectors can’t call you at odd hours; for example,

    before 8:00 a.m. or after 9:00 p.m.  They cannot

    call repeatedly, let the phone continue to ring or

    otherwise harass or annoy you as a means of getting you

    to make a payment.

· Debt collectors can’t contact you without first

    identifying themselves as collectors.

· Debt collectors can’t contact you at work if you’ve  

    told them your employer would disapprove.

· Debt collectors can’t use abusive or profane language.

· Debt collectors can’t use violence or threaten to use

    violence.

· Debt collectors can’t claim to be an attorney or law

    enforcement officer if they’re not, and they can’t send

    documents that look like legal documents if they aren’t.

· Debt collectors can’t tell you you’ll go to prison if you

    don’t pay off your debt, and they can’t claim that your

    property will be seized.

· Debt collectors can’t add additional interest or fees to

    your debt unless they’ve been authorized by the original

    creditor or by the court.

· Debt collectors can’t directly contact you if you have told

    them you are represented by an attorney. 

· Debt collectors can’t reveal or discuss the nature of your

    debts with anyone other than your spouse or attorney. 

· Debt collectors can’t communicate with you in a manner

    that would cause you to be embarrassed.  For example,

    collectors can’t send you a letter with their name and 

    address on the envelope if the name and address

    indicates they are in the debt collection business. They

    can’t contact you by postcard and they can’t leave a

    message at your workplace that would indicate to others

    the nature of your business with them.   

 

· The debt collector must tell you who they are, why

     they’re calling, and that any information you give them

     may be used to help them collect the debt. They must tell

     you a version of this every time they talk with you.

· Within five days of first contacting you, the debt

    collector must notify you of your right to dispute the debt

    and the action you should take if you don’t believe you

    owe the money.

· If, within 30 days of receiving notice, you file a written

    dispute or request written verification of the debt, the

    collector is required to provide you with, at a minimum,

    the name and address of the creditor and the amount

    owed. 

· If, within 30 days of being contacted, you send the

    collection agency a letter stating you don’t owe the

    money, the collector must stop contacting you, unless you

    are sent proof of the debt, or unless they are contacting

    you to let you know they or the creditor intend to take

    some specific further action.

· AND – this is important – you can stop a debt collector

    from contacting you by simply sending a letter telling

    them to stop. Once the agency receives your letter, they

    are prohibited from contacting you except to tell you that

    all collection efforts have ended or that the collection

    agency or original creditor will now take the matter to

    court.   

 

· You have the right to sue the collector in state or federal

    court within one year from the date the violation

    occurred. If you win, you may recover damages of up to

    $1,000 plus court costs and attorney fees. But if you

    lose, and the court determines you filed the lawsuit in

    bad faith (for example, to get back at or to harass the

    collector) the court may fine you and award attorney’s

    fees to the collector. 

 

· You can report violations to your State Attorney

    General’s office  and the Federal Trade Commission. 

    Many states have consumer protection laws that are

    different from the federal Fair Debt Collection Practices

    Act.  Your Attorney General’s office can tell you if there

    are state laws that apply to your situation.  If you have

    questions about the Fair Debt Collection Practices Act or

    your rights under the Act, write the Correspondence

    Branch, Federal Trade Commission, Washington, DC

    20580 or visit www.ftc.gov/credit.

 

Don’t hide from the collector.  While you can tell the collector to stop contacting you, you might want to talk with them at least once to find out what’s going on, even if you owe the money but can’t repay the debt right now, don’t think you owe the money, or believe the collector got your name by mistake.  The best decisions are informed decisions.  If you owe the money, the collector may be able to help you craft a workout plan to repay the debt over time.  If you don’t owe the money, the collector may be able to close the file based on information you provide.  Either way, it’s usually better to face up to your demons and deal with them than to let the situation worsen over time.