A Summary of Your Rights
Under the Fair Debt Collection Practices Act
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 article 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.
Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Software Kits. For credit repair services, Lexington Law Firm
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Your Rights Under the Fair Debt Collection Practices Act: FDCPA
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