Ten Things You Should Know About the Fair Debt Collection Practices Act (FDCPA)

12-Apr-2010 Everyone gets a little behind on their monthly payments at one time or another. But if you are weeks or even months behind on a personal debt, it won’t be long before the collection agency starts calling – if they haven’t already. While you do have an obligation to pay your debts, you do have rights when it comes to those annoying collection calls under the Fair Debt Collection Practices Act. Simply put, according to the Federal Trade Commission, the Fair Debt Collection Practices Act “prohibits debt collectors from using abusive, unfair or deceptive practices to collect from you.” Here are the top ten things you need to know about the law on debt collection –

1. The Fair Debt Collection Practices Act (FDCPA) covers personal debt. The most common types of personal debt that fall under debt collection practices are credit cards, auto loans, mortgages and medical bills. The Fair Debt Collection Practices Act does not cover business loans.

2. There are limits on where and when a debt collector can contact you. The FDCPA prohibits debt collection practices such as contacting you at unreasonable hours of the early morning and late evening. Additionally, according to the law on debt collection, a debt collector may not call you at your place of employment if you have previously indicated that you are unable to receive phone calls at work.

3. You can stop collection calls. You may request in writing that a debt collector stop contacting you. To help enforce your request, keep a copy of the letter and send it certified mail with return receipt. That way, if the debt collector continues to contact you, it becomes harassment and you have recourse against them. There are two exceptions: the debt collector is contacting you to notify you that no further action will be taken against you or the debt collector is notifying you that they intend to take a specific action against you such as a lawsuit. Contact Chang and Carlin for a FREE Legal Evaluation.

4. Debt collectors may contact third parties. If you have hired an attorney to represent you, a debt collector will communicate through them rather than with you directly. They may also contact other friends and associates in an effort to obtain information about your contact information and place of employment. Beyond that information, a debt collector may not discuss your debt with a third party other than your attorney.

5. A “validation notice” is required. Within five days of initial contact, a debt collector must send you a written notice outlining the name of the creditor to whom you owe money, how much you owe, and what action to take if you believe the debt is erroneous.

6. A debt collector can contact you even if you don’t believe the debt is yours unless you send a letter stating that you do not owe the money within 30 days of receiving the validation notice. Upon receipt of this letter, the debt collector may not contact you again unless they send you verification that you do owe the debt.

7. Certain behaviors are “off-limits”, even for debt collectors. These behaviors include harassment, false statements and unfair practices. A debt collector cannot threaten that you will be arrested, have your wages garnished, or any other legal action will be taken against you unless they intend to legally take those actions. They may not use a false company name or send correspondence that looks like an official document from a court or government agency if it is not.

8. Your wages cannot be garnished without legal action. A debt collector does not have the authority to garnish your bank account or wages without going through the proper legal channels and obtaining a court order.

9. You have recourse if you believe a debt collector has violated your rights under the Fair Debt Collection Practices Act. You may sue a debt collector within one year of the date you believe your rights were violated. You may also file a complaint with the state Attorney General’s Office.

10. Professional legal help is available. If collection agencies have started calling, you are most likely in a precarious financial position. And while you have recourse in dealing with debt collectors, stopping the calls will not absolve you of your responsibility to pay the debt. A qualified legal professional will discuss your rights under the Fair Debt Collection Practices Act and help you come up with a long term strategy for dealing with your debt and creditors.

Chang and Carlin
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.

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