Fair Debt Collection Practices Act

As you may know, there is a federal law that governs the types of actions or conduct a collection agency may take part in during the collection of a debt. The law is known as the Fair Debt Collection Practices Act (FDCPA) and it sets forth both protections for you the consumer and strict guidelines that the collector must follow.

For starters, the FDCPA sets forth that debt collectors may contact you by mail, telephone, fax or telegram, but may only do so at reasonable times, i.e. after 8 a.m. or before 9 p.m.

The Act further sets out that within five days after you are first contacted, the collector must send you a written notice telling you the amount of money that you allegedly 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.

Per the FDCPA, 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. (This is known as a dispute). 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.

The Act also sets forth that if you have an attorney, the debt collector may not contact anyone other than your attorney (provided that you give the debt collector the attorney’s contact information). If you do not have an attorney, a collector may contact other people, but only to find out where you live and work if they do not already have that information. Collectors usually are prohibited from contacting third parties more than once. In most cases, the collector is not permitted to tell anyone other than you and your attorney that you owe money or any type of debt.

If you believe that a debt collector has violated the FDCPA, you have the right to sue that collector in a state or federal court within one year from the date that you believe the law was violated. If you win, you may recover money for the damages that you suffered, including Court costs and attorney's fees. It is also recommended that you contact your state Attorney General’s office to file a complaint, and to likewise file one with the Federal Trade Commission.

Popularity: 2% [?]

Tagged with: Collection • debt • Fair • Practices

Like this post? Subscribe to my RSS feed and get loads more!