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Fair Debt Collections Practices Act:
What
debts are covered?
Who is a debt collector?
How may a debt collector contact you?
Can you stop a debt collector from contacting you?
May a debt collector contact anyone else about your debt?
What must the debt collector tell you about the debt?
May a debt collector continue to contact you if you do not
believe you owe the money?
What types of debt collection practices are prohibited?
What control do you have over payment of debts?
What can you do if you believe a debt collector violated
the law?
Where can you report a debt collector for an alleged violation?
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, other than the creditor, who regularly
collects debts owed to others. Under a 1986 amendment to the Fair Debt
Collection Practices Act, 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 unreasonable 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.
Can
you stop a debt collector from contacting you?
You can stop a debt collector from contacting you by writing a letter
to the collection agency telling them to stop. Once the agency receives
the letter, they may not contact you again except to say there will be
no further contact. The agency may notify you if the debt collector or
the creditor intends to take some specific action.
May
a debt collector contact anyone else about your debt?
If you have an attorney, the debt collector may not contact anyone other
than your attorney. If you do not have an attorney, a collector may contact
other people, but only to find out where you live and work. Collectors
usually are prohibited from contacting such permissible 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 do not believe you owe
the money?
A collector may not contact you if, within 30 days after you are first
contacted, 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 anyone. For example,
debt collectors may not:
- Use threats of
violence or harm against the person, property or reputation;
- Publish a list
of consumers who refuse to pay their debts (except to a credit bureau);
- Use obscene or
profane language;
- Repeatedly use
the telephone to annoy someone;
- Telephone someone
without identifying themselves;
- Advertise your
debt.
False Statements.
Debt collectors may not use any false statements when collecting a debt.
For example, debt collectors may not:
- Falsely imply that
they are attorneys or government representatives;
- Falsely imply that
you have committed a crime;
- Falsely represent
that they operate or work for a credit bureau;
- Misrepresent the
amount of your debt;
- Misrepresent the
involvement of an attorney in collecting a debt;
- Indicate that papers
being sent to you are legal forms when they are not;
- Indicate that papers
being sent to you are not legal forms when they are.
Debt collectors
also may not state that:
- You will be arrested
if you do not pay your debt;
- They will seize,
garnish, attach or sell your property or wages unless the collection
agency or creditor intends to do so, and it is legal to do so;
- Actions, such as
a lawsuit, will be taken against you, which legally may not be taken,
or which they do not intend to take. Debt collectors may not:
- Give false credit
information about you to anyone;
- Send you anything
that looks like an official document from a court or government agency
which it is not;
- Use a false name.
Unfair practices.
Debt collectors may not engage in unfair practices when they try to collect
a debt. For example, debt collectors may not:
- Collect any amount
greater than your debt, unless allowed by law;
- Deposit a post-dated
check prematurely;
- Make you accept
collect calls or pay for telegrams;
- Take or threaten
to take your property unless this can be done legally;
- Contact you by
postcard.
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 you believe the law was violated. If you win, you
may recover money for the damages you suffered. Court costs and attorneys
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.
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