Friday, November 4, 2011

Debt Collector Laws Can Finally Give You Some Peace of Mind

If you're in debt, you may have had the experience of being harassed or annoyed by a debt collector. At inconvenient hours of the night, early in the morning, or at work, phone calls from debt collectors can be frustrating and irritating. But what can you do? Are there any debt collector laws that prevent them from doing these things to you?

Fortunately, there are laws that debt collectors must follow that prevent them from doing these things to you. The most powerful of these debt collector laws is called the Fair Debt Collection Practices Act, also known as the FDCPA.

The FDCPA is a Federal law that was created to prevent collectors from using unfair debt collection practices. These practices included harassment, fraudulent collection practices, and intimidation techniques.

Under the FDCPA, you have the right not be harassed by collectors. This includes phone calls before 8:00 AM or after 9:00 PM. It also includes phone calls at the place you work, if they know that your employer is not okay with it.

Debt collection agencies are also not allowed to use misleading or fraudulent information to collect on a debt. For example, they are not permitted to tell you that the sheriff will come and arrest you for failure to pay on a debt.

In addition to the protections of the FDCPA, your state may offer legal protections. Typing "debt collector laws" and the name of your state into a search engine will give you a good idea of what additional protections your state's laws offer.

Depending on which state you live in, there's probably a statute of limitations beyond which a debt is uncollectible. A quick search for "statute of limitations debt collection" and the name of your state will tell you how long a bill collector has to collect on a debt that you owe. Note that the debt may be subject to the laws of the state in which the company operates, or to the laws of the state in which you incurred the debt.

I have personally been tricked by debt collectors into paying a debt on which the statute of limitations had expired. I was so worried about paying off the debt and getting it off my credit record that I didn't even bother to see how old the debt was. So, I wasted $150 on a debt that I no longer owed. Don't be dumb like me - do a little research first and potentially save yourself hundreds of dollars.

If you have additional questions about your rights under the law, there are two places that you should go. The first is your state's Attorney General's office. They can tell you whether the debt collectors behavior is illegal under your state's laws or not. They can also tell you what remedies the law offers if a debt collector is behaving illegally.

The second place that you can go for answers about your rights under the law is the Federal Trade Commission, also known as the FTC. The FTC is the governing body that enforces the FDCPA. If you have questions or complaints about the behavior of a debt collector, the FTC can give you definitive answers.

Under the FDCPA, the FTC can accept complaints from debtors who are having trouble with collection agencies. The FTC can investigate these complaints and take legal action on behalf of debtors. They can even make debt collection agencies pay penalties for their illegal behavior.

Taking the time to learn your rights under debt collector laws can save you from a lot of hassle and harassment at the hands of debt collection agencies. Learn your rights, enforce them, and enjoy some peace of mind until you've had the chance to pay off your debt.

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