Stopping Bullies:
The Fair Debt Collections Practices Act
After Congress passed the Fair Credit Reporting Act, and several additional bills, it became obvious that more work had to be done to protect you, the consumer. People who owed money to creditors were becoming increasingly harassed, often bullied to the point of tears, nervous breakdowns, even suicide. The government responded with The Fair Debt Collections Practices Act. This legislation prohibits debt collectors and collection attorneys from using undue harassment, and other unethical practices, when collecting a debt.
The bill covers all personal, family and household debts, including money owed for medical care, credit cards, even car loans. Debt collectors are given strict guidelines on when and how they may contact you:
- In person, by mail, telephone, or fax;
- Only between the hours of 8am and 9pm, unless you agree to a different time-frame;
- Never at work, if they are told your employer does not allow personal phone calls;
The debt collector may only contact other people about your debt under the following conditions:
- If you have an attorney, the collector may contact them;
- If you do not have an attorney. the collector may contact other people (just once), but only to learn where you live and work;
When the debt collector contacts anyone about you (other than you or your attorney), they are barred from telling them you owe money.
Within five days of initiating collections activity, the collector is required to send you a written notice explaining the following:
- The amount you owe;
- The name of the creditor to whom you owe the debt;
- What action you should take if you wish to dispute the debt.
If you dispute the debt in writing within 30 days of notification of the debt, the collector must stop all collections activities. They cannot renew their collection activities until the debt is verified, and they send you proof.
Additionally, you can permanently stop a debt collector from contacting you by writing them a letter requesting they cease all contact. It's always best to send such correspondence certified mail. Once they receive your notice, they may no longer contact you, except to say there will be no further contact. They may also notify you if they, or the original creditor, intend to take further action against you.
The Fair Debt Collections Practices Act also prohibits harassing collection practices, such as:
- Threats of violence or harm against person, property or reputation;
- Publishing a list of consumers who refuse to pay their debts, advertise your debt (except to credit bureaus), or provide false information about you to anyone;
- Repeatedly using the telephone to harass, or not identifying themselves when they call;
- Falsely implying that they are attorneys, government representatives, or misrepresenting the involvement of an attorney in the collections process;
- Falsely implying that you have committed a crime, and will be arrested if you do not pay;
- Giving a fake name when contacting you, or falsely representing that they work for a credit bureau;
- Misrepresenting the amount you owe;
- Claiming they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so (and is legally authorized to do so);
- Telling you papers they send you are legal forms, when they are not (or vice versa), or sending you anything that looks like a court or government document, that is not;
- Claiming that actions, such as lawsuits, will be taken against you, when they are legally prohibited from taking such actions; or which they have no intention of taking;
- Collecting any amount greater than your debt, unless allowed by law;
- Using obscene or profane language;
- Depositing a post-dated check prematurely;
- Taking, or threatening to take, your property, unless they can legally do so;
- Making you accept collect calls, or contacting you by postcard;
- Calling your employer, neighbors, friends, and relatives and revealing your delinquency to them. (One exception: a delinquency may be revealed to a co-signor.).
Be aware, the Fair Debt Collection Act regulates debt collection agencies and attorneys; it does not apply to your original creditors. However, most creditors have initiated debt-collection policies that do not violate this act. State laws typically govern the conduct of original creditors, so if you believe a creditor is breaking the law, contact your state's Attorney General's office. If you are being harassed by a collection agency, contact the FTC (www.ftc.gov).