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Loading ...In 1978, Congress passed the Fair Debt Collection Practices Act to protect consumers from some of the most offensive collection tactics. The FDCPA protects debtors from harassment, public embarrassment, and unfair collection practices. It doesn’t stop debt collectors from collecting debts, but it does set reasonable limits on how and when they can attempt to collect debts.
The FDCPA applies to outside collection agencies, not internal debt collectors. If your credit card issuer or another lender is trying to collect the money you owe them directly, then this law does not apply. (There may be state laws, however, that apply to the creditor’s activities.) If your card issuer, instead of using its own name, uses a name that would make someone think it is an outside collection agency, it would be covered by this law.
Here are the basic provisions of the FDCPA:
Debt Collectors Can’t Go Public with Your Debt
Debt collectors can’t tell anyone else about your debt—not even your family members—unless they are cosigners or joint applicants on the account. If a debt collector does contact anyone else about a debt you owe, it can only be to get information about where to find you. If a collector does contact someone else to find out where you might be, they can’t indicate that they’re calling from a collection agency or to collect a debt you owe.
Debt Collectors Can’t Call You at All Hours
They are not allowed to call you before 8 a.m. or after 9 p.m., your time. If your employer does not allow you to take personal calls at work, you can demand that the debt collector stop calling you at work. All you have to do is tell the collector you can’t take personal calls at work; then they’re not supposed to call you at work again.
Unfair Practices Are Prohibited
Unless the law or your contract with the creditor permits it, a debt collector cannot collect more than the amount you owe on the original debt. He can’t make you pay for collect telephone calls, telegrams, or other hidden charges related to his communication with you.
Postdated checks: A debt collector can’t force you to send a postdated check in order to threaten you or to initiate criminal prosecution. If you do send a postdated check, he can’t deposit it or cash it (or threaten to do so) before the date on the check. In addition, if you send a check that is postdated by more than five days, the debt collector must give you written notice that he will be depositing the check three to ten days before doing so. One executive at a large collection agency suggests consumers who do send postdated checks write in red ink above the date line “VOID UNTIL DATED” as additional protection.
Don’t send a postdated check to a creditor. In many cases, creditors can cash postdated checks without regard to the date. Many issuers receive thousands of payments each week. They are unlikely to catch the fact that a check is postdated, but even if they do, it might be cashed anyway.
Harassment Is Illegal
The following actions are considered harassment or abuse, and collection companies are not allowed to engage in them:
• threatening to use violence or criminal means against you, your family, or property;
• using abusive or obscene language to intimidate or abuse;
• calling you repeatedly on the phone to annoy you;
• calling you and failing to identify themselves;
• publishing a list of “deadbeats.”
Collectors Can’t Use False or Deceptive Collection Methods to Collect a Debt
If a debt collector dressed up as a sheriff and arrived at your door demanding payment (unethical ones might go to those lengths), he would be breaking the law by falsely representing himself. Other false or misleading representations include posing as an attorney; mailing letters that appear to be from an attorney but are not; or using a false name or bogus business name when calling to collect a debt.
It is important to understand that a debt collector can’t threaten legal action that by law he cannot take to collect from you, and he cannot threaten any legal action he doesn’t intend to take. Collectors also can’t threaten you with arrest or falsely accuse you of committing a crime if you don’t pay the debt. They can’t threaten to seize, attach, or sell property, or garnishee your wages, unless they actually intend to do so and have a legal right to do so.
You’re Entitled to Written Notification of Your Debt
Within five days of initially contacting you, a debt collector must send you written notice of the debt and tell you: how much you owe, to whom you owe it, and what to do if you don’t think you owe the debt. You then have thirty days to write to the collection agency to dispute it in writing. If the collection company claims there is a judgment against you, you can request in writing that the creditor send you a copy of the judgment. If there is any dispute over the amount you owe, request verification of the debt.
You Can Stop Debt Collectors
If you’re sick of taking calls about a debt you can’t pay, or won’t pay, you can tell the collection agency to leave you alone. Under the FDCPA, you can write a debt collection agency and tell them not to contact you anymore. After they receive your letter, they cannot communicate with you except to tell you that they will not be contacting you further or to tell you they may take legal action against you (such as taking you to court).
If you decide to go this route, write to the collection agency and explain why you can’t or won’t pay the bill: “I can’t pay anything because I’m ill and the doctor doesn’t think I’ll be able to go back to work for six months. I’ve moved in with my sister and I have no money.” Or, “I’ve told you I won’t pay this debt because my health insurance was supposed to cover it. I’ve sent you and the insurance company proof that it’s not my responsibility and I really don’t want to explain it to you again.” Send your letter certified mail, return receipt requested, and keep a copy for your own records.