Knowing
the FDCPA will help you play the collection game
You
are protected by The Fair Debt Collection Practices
Act, which is federal law that protects consumers
from harassment and abusive collection styles. The FDCPA
applies to collection efforts that are employed by persons
other than the original creditor "that regularly
collect debts owed to others."
The
FDCPA applies to third party collectors who have purchased
accounts or been hired by an "original creditor"
to collect on a debt. Original credit institutions are
not required to abide by the provisions set forth by the
act.
Understanding
the Fair Debt Collection Practices Act and letting the
creditors know that you understand your rights is often
one of the most effective ways of dealing with collectors
and their unsubstantiated threats.
FDCPA;
when a debt collector calls:
When
a debt collector contacts you, at some point in the conversation
they must advise you that they are calling from a collection
agency. They are required to identify the name of the
original creditor and the amount of the balance on the
account that is being collected upon. This is important
because it allows you to determine whether it is a bill
on which you feel your are responsible for paying or on
which you have a dispute.
If
the debt collector was not required to advise you of the
balance and original creditor, you might pay on a bill
that you are not legally responsible for or you might
pay more than you are legally required to. The
debt collector must also advise you that the purpose of
the call is for collecting a debt and that the information
provided by you will be used for the purpose of collecting
a debt.
At
this point, you should not engage in conversation. For
they may trick you into a verbal contract for which you
are not obligated to pay on that debt. You should always
request that the debt collector mail you any information
they have obligating you to pay that debt. The debt collector
is also required to advise that you reserve the right
to dispute the debt within 30 days.
FDCPA
Restrictions governing debt collectors. Tactics that are
not permitted by law:
- The
debt collector may not repeatedly call you several
times daily.
-
If you request that collectors do not call you at
work, they must stop.
- Collectors
can not use foul language or threaten a consumer with
violence, seizure of assets, or imprisonment. They
cannot use language that is insulting, discriminatory
or belittling.
- Without
obtaining your permission, collectors are not permitted
to tell any person other than yourself, a cosigner,
your spouse, or your attorney that you owe a debt.
- The
debt collector can not publish your name and the nature
of the debt. They may not threaten to harm your reputation
as a measure to collect a debt.
- A
debt collector cannot call you or in any way contact
you before 8:00 a.m. or after 9 p.m. in accordance
with your local time zone.
- A
collection agency cannot deposit a postdated check
prior to the date on the check.
Rules
governing false representation:
- A
debt collector cannot misrepresent who he/she is.
The collector may not pretend that he/she is someone
else or that he/she represents a business or agency
that he/she does not.
- A
collector cannot falsely imply that he is an attorney
or government representative. They cannot indicate
that forms or letters that are sent to you are legal
forms if they are not.
- The
collector cannot falsely imply that you have committed
a crime. They cannot threaten that you will be arrested
if you do not pay a debt. A debt collector may not
offer false information to get you to pay a debt.
In other words, a collector may not tell you or write
to you advising that he/she is going to sue you, garnish
your wages, or attach personal property if he does
not actually have the intent to do so.
- A
collector can not falsely represent that they work
for a credit bureau.
What
to do if collection activity becomes unbearable:
In accordance with the FDCPA, if third party collectors
becomes unbearable, you may send a Cease and Desist
Letter to them, which requires them to stop contacting
you. Frustrated consumers do this when there is no end
in sight to the constant calls and emotional distress
that unrelenting collection attempts may be causing. Unfortunately,
Cease and Desist letters do not work most of the time.
According
to the law, when a debt collection agency receives Cease
and Desist Letter, they aren't supposed to communicate
with the consumer with respect to the debt except:
- to
advise the consumer that the debt collector's efforts
are being terminated
- to
notify the consumer that the debt collector or creditor
may invoke specific remedies which are ordinarily
invoked by such debt collector or creditor: or
- where
applicable, to notify the consumer that the debt collector
or creditor intends to invoke a "specific remedy."
Cease
and Desist notification is applicable to third party collectors
only.
If
you send a Cease
and Desist letter to an original creditor, they are
not required to refrain from calling you and they may
respond negatively and heighten their collection efforts.
It is important to remember that sending Cease and Desist
Notification does not pardon you from repayment of a debt.
The
fact that your life will be relatively more peaceful does
not mean that your obligations have gone away. If you
send Cease and Desist notification to your creditors,
you should continue to make consistent monthly payments
to establish that you are committed to paying back the
balance owed.
As
a safeguard, it is best to have Cease and Desist Notification
delivered by certified mail, return receipt requested,
because you will have concrete proof that the collector
received it.
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