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Click here to download the Federal Trade Commission Annual Report for 2007
Summary of The Fair Debt Collection Practices Act
Kenneth Hiller has been handling Fair Debt Collection Practices
Act (FDCPA) claims, and other types of consumer cases for over 10 years. He has filed more cases in Western New York than any other attorney by far. Drawing on his experience and
expertise in this area, he has compiled the following guide to answer the most common questions about the FDCPA.
The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors
and collection attorneys from using undue harassment and other unethical practices when collection debt.
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 credit cards. Business debts are not covered.
How may a debt collector contact you?
A collector may contact you in person, by mail, telephone, 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, or having your lawyer write a letter to the collection agency telling
them to stop, or by simply informing them you refuse to pay the debt. Any letters sent to a collection agency should be sent by certified mail so that you can prove the letter was mailed and
received. Once the agency receives your letter, they may not contact you again except to notify you if the debt collector or the creditor intends to take some specific action, such as suing
you.
May a debt collector contact anyone else about your debt?
A debt collector may not disclose to third parties (friends, relatives, bosses, neighbors, etc.) that they are
collecting a debt from you. 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.
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 written, 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 under the Fair Debt Collection Practices Act?
* Threaten a lawsuit they do not intend to file. This is one of the
most common violations. Debt collectors rarely file a lawsuit for a debt under $1,000.00. If you are threatened with a lawsuit for a debt smaller than this, there is probably a
violation
* Use of threats of violence or harm against the person, property, or reputation
* Publishing a list of consumers who refuse to pay their
debts or advertise your debt (except to a credit bureau) or give false information about you to anyone
* Repeatedly using the telephone to annoy someone or telephone people
without identifying themselves
* Falsely implying that they are attorneys or government representatives or misrepresent the involvement of an attorney in collecting a debt
* Falsely implying that you have committed a crime and will be arrested if you do not pay your debt
* Giving a false name when they contact you or
falsely representing that they operate or work for a credit bureau
* Misrepresenting the amount of your debt or claim 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
* Misrepresent the imminence of legal action. For example, a debt
collector cannot threaten to garnish your wages on Monday, unless they plan to do so and are permitted to do so by law
* Indicating 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 or send you anything that looks like an official document from a court or government agency
when it is not
* Claiming that actions, such as a lawsuit, will be taken against you, which legally may not be taken, or which they do not intend to take.
* Collecting any amount greater than your debt, unless allowed by law
* Using obscene or profane language
* Depositing a post-dated check prematurely
* Taking or threatening to take your property unless this can be done legally
* Making you accept collect calls or contacting you by postcard
* Calling your employer, neighbors, friends and relatives and revealing your delinquency
to them [A delinquency can be revealed to a co-signor.]
Note that the Fair Debt Collection Act regulates debt collection agencies and attorneys and does NOT apply to original
creditors. However, most major creditors have adopted collection policies that do not violate the Fair Debt Collection Practices Act.
Note:
The information contained herein is general information and is not intended to convey legal advice. Like any area of law, there are many exceptions and qualifications to the rules and laws discussed. You should consult an attorney for advice regarding your situation
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