 |
|
 |
|
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.
We answer commonly asked questions about your rights under the Fair Debt Collection Practices Act.
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.
Who is a debt collector?
A debt collector is any person who regularly collects debts owed to others.
This includes attorneys who collect debts on a regular basis.
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:
False statements. Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:
Debt collectors also may not state that:
Debt collectors may not:
Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:
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.
|
|
|
|
