Fair Debt Collection

If you have and use credit cards, owe money o­n a personal loan, or are paying o­n a home mortgage, you are a "debtor." If you have problems repaying your creditors and subsequently fall behind in your payments, or a mistake has occurred o­n your accounts, you will be contacted by a "debt collector."

You should know that regardless as to the reason that the debt collector is contacting you, the Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection.

The following are the most commonly asked questions about your rights under the Fair Debt Collection Practices Act .

What types of debts are covered under the Act?
Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of a vehicle, for medical care, or for charge accounts.

Who is a debt collector?
A debt collector is any person who routinely collects debts owed to others. This includes attorneys who regularly collect debts.

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 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 has knowledge that your employer disapproves of such contacts.  

Can you stop a debt collector from contacting you?
You can stop a debt collector from contacting you by writing a letter to the collector telling them to cease contacting you. o­nce the collector receives your letter, they may not contact you again except to say there will be no further contact or to inform you that the debt collector or the creditor intends to take some specific action (usually legal). Sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

May a debt collector contact anyone else about your debt?
If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but o­nly to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than o­nce. In most instances, the collector may not inform anyone other than you and your attorney that you owe money.

What must the debt collector tell you about the debt?
Within five days the first contact, 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 receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if proof of the debt is sent to you, such as a copy of a bill for the amount owed.

What types of debt collection practices are prohibited?
Harassment is not allowed.   Debt collectors may not harass, oppress, or abuse you or any third parties they contact.

For example, debt collectors may not:

• threaten violence or harm;
• publish the names of consumers who refuse to pay their debts (except to a credit bureau);
• use obscene or profane language; or
• repeatedly use the telephone to annoy someone.

Debt collectors may not use any false or misleading statements when collecting a debt. They 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;
• indicate that papers being sent to you are legal forms when they are not; or
• indicate that papers being sent to you are not legal forms when they are.

Debt collectors may not:

• 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; or
• threaten   that actions such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.

Debt collectors also may not:

• give false or misleading credit information about you to anyone, including a credit bureau;
• send you anything that looks like an official document from a court or government agency when it is not; or
• use a false name.

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 your state law permits such a charge;
• deposit a post-dated check prematurely;
• use deception to make you accept collect calls or pay for telegrams;
• take or threaten to take your property unless this can be done legally; or
• 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 the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney's 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 an alleged violation by a debt collector?
Any problems you have with a debt collector should be reported to your state Attorney General's office and the Federal Trade Commission. A lot of states have their own debt collection laws, and your Attorney General's office can help you determine your rights.