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GIZMO !
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Bulletin Board |
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FAIR DEBT COLLECTION
If
you use credit cards, owe money on a personal loan, or are paying on a home
mortgage, you are a 'debtor.' If you fall behind in repaying your creditors, or
an error is made on your accounts, you may be contacted by a 'debt collector.'
You
should know that in either situation, the Fair Debt Collection Practices Act
requires that debt collectors treat you fairly by prohibiting certain methods of
debt collection. Of course, the law does not forgive any legitimate debt you
owe.
This
brochure answers commonly asked questions about your rights under the Fair Debt
Collection Practices Act.
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 collector from contacting you by writing a letter to the collection
agency telling them to stop. Once the agency receives your 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 believe you do not owe 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 people 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 when 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, 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 collectors 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 Generals
office and the Federal Trade Commission. Many states have their own debt
collection laws and your Attorney Generals office can help you determine your
rights.
If
you have questions about the Fair Debt Collection Practices Act, or your rights
under the Act, write: Correspondence Branch, Federal Trade Commission,
Washington, D.C. 20580. Although the FTC generally cannot intervene in
individual disputes, the information you provide may indicate a pattern of
possible law violations requiring action by the Commission.