The Federal Fair Debt Collection Practices Act (FDCPA) is a set of legal guidelines that protects a debtor's privacy, as well as protects them from abusive behavior such as being harassed by debt collectors. The FDCPA is enforced by the Federal Trade Commission (FTC), and sets the national standard for collection agencies.
If you are unfamiliar with the Fair Debt Collection Practices Act, the following are common questions and answers about the Act that will cover its main points to help improve your understanding of the rights of a debtor and collection agency.
· Can a debt collector contact you by phone? Yes. However there are certain restrictions. For instance, a debt collector may
Call you before 8 a.m. or after 9 p.m. unless you have permitted the collector to do so.
Call you constantly
Trick you into paying for telegrams or accepting collect calls, or pretend to be someone they are not
Use the phone to harass you, make threats, use obscene language or make negative comments regarding your personal lifestyle, morals or choices.
Contact you if have an attorney. They should contact only the attorney
· Can a debt collector threaten to sue me? Not if it is an empty threat only for the purpose of bullying you into paying the debt. For instance, a debt collector is not allowed to threaten you with violence, or tell you they will garnish your wages or sell your property if this is illegal, etc. However, keep in mind that a collection agency has the right to file a lawsuit against you to collect a debt.
· If a creditor decides to send my account to a collection agency or credit bureau, are they required to inform me of this decision first? Under the FDCPA there is not rule that says you must be notified first. However, the law may be different depending on the state you live in, as some states require that the creditor notifies the debtor first before taking action. Therefore, investigate your state law pertaining to debt collection.
· Can a debt collector contact me by phone before contacting me in writing? Yes. A collection agency has the option to contact you by telephone first if it is there wish to do so. However, within 5 days of the call, the debt collector must send you a written notice of a debt. This notice is required to tell you the amount of money you owe, and the name of the creditor seeking the payment. The written notice is also required to inform you of how to file a dispute if you do not agree that you owe a debt.
· Do I have to put up with phone calls from a debt collector? No. You have the right to request that the debt collector stops making any further contact with you. This can be done over the phone and/or in a written letter known as a "cessation of communication". It is strongly recommended that you write the letter because, should you need it, this provides you with proof that you requested a cease in communication.
Keep in mind that after you make your request, the collector is entitled to contact you one more time for the purpose of informing you (not threatening you) of what action, if any, they intend to take to collect the money you owe. Just remember that this action only stops the collector from calling, it doesn't stop the debt collection process.
Finally, under no circumstances is a debt collector permitted to lie about who they are; the amount of money you owe; send you any false documents; or accuse you of a crime. They must also tell you their name and the name of the agency they are calling on behalf of.
Due to the fact that the FDCPA is your best protection against debt collectors, make sure you thoroughly read the Act, as well as know the laws regarding debt collection in your specific state to provide yourself with the best protection.
Don't forget, you never have to put up with threats or harassment from a debt collector. Therefore, if they refuse to stop calling you, report them to the Federal Trade Commission. You can also lookup the owner of a phone number here to see if you can find out more information about the individual that you can provide in your complaint to the FTC.
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