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Fair Debt Collection Practice Act protecting you when you are in consumer
debt
The Fair Debt Collection Practice Act sets down the terms of how
a creditor may go about collecting the monies owed to him by a debtor.
Any consumer who owes money on loans, credit cards or mortgages
becomes a debtor. If you fall into consumer debt, or if mistakes
on your credit record make you appear to be delinquent in your accounts,
you may have to deal with a debt collector. You can also get free
debt consolidation help from a professional credit counselor.
Under the Fair Debt Collection Practice Act, certain methods of
collection are prohibited, and fair treatment is guaranteed. This
does not relieve you of responsibility for debts incurred, but does
ensure that you have rights when it comes to repaying those debts.
Answers to frequently asked questions such as these, are all found
in the Fair Debt Collection Practice Act. Every American in consumer
debt should read the Fair Debt Collection Practice Act to learn
about their rights.
What debts fall under the Fair Debt Collection
Practice Act?
Any monies that you owe for goods or services, is considered a
debt. This encompasses personal, household, or family debts as well
as debt incurred through credit card purchases, loans, and items
bought on installment plans.
Who will collect my debt?
A debt collector may be an employee of the creditor, a member of
a firm or company which collects debts on a creditor's behalf, or
attorneys who also perform this service.
How will the debt collector contact me?
A collector is required to contact you personally, with a phone
call, letter, fax, or telegram. Unless you give permission otherwise,
all contacts must be made within reasonable hours, generally considered
to be 8a.m.-9p.m. They are also not permitted to make contact in
places that would be inconvenient for the conducting of personal
business, including your workplace, if they know such contact would
be considered inappropriate by your employer.
Can I make them stop contacting me?
Yes. You may send a letter to the debt collector requesting that
they cease contact. Upon receiving it, they are then permitted only
to send you a notice that there will be no more contact, or that
the creditor is taking, or has directed them to take specific action.
Will a debt collector tell other people I
owe money?
No. If the matter has come to the point where you have engaged
a lawyer, the collector is required to contact them to discuss the
matter, and not you. In that case they are permitted to give details
of the debts. If you do not have legal counsel with whom they can
negotiate, a collector may speak to other people in order to obtain
contact information such as where you live, your phone number, or
your place of employment. Communications with third parties are
normally limited to one time only.
What information will the debt collector provide?
After the initial contact has been made, the debt collector has
five days in which to send you in writing, details of how much you
owe, to whom it is owed, and what your options are if you do not
believe this is a legitimate debt.
If I don't owe the money, will they keep contacting
me?
If you have reason to believe it is not a legitimate debt incurred
by yourself, then you have 30 days after receiving the debt collector's
written notice, to inform them that you do not owe any money. If
the collector has, or is supplied with proof of a debt by the creditor,
such as a signed credit receipt, they are then allowed to proceed
with their collection.
What is a debt collector not allowed to do?
Under no circumstances, may a debt collector harass you in any
manner, in person, or by repeated contacts forbidden as outlined
in the appropriate answers above.
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