The Fair Debt Collection Act (part 2)

Most commonly asked questions

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What types of debt collection practices are prohibited by law?

Harassment is prohibited.

More specifically, debt collectors may not harass, oppress, or abuse any person. Meaning, they cannot – use treats of violence or harm to the debtor, their property or reputation. They cannot publish a list of debtors who refuse to pay their debts (expect of course to the credit bureau). They cannot use obscene language. They cannot repeatedly use the telephone to annoy someone. They cannot call any debtors house without identifying who they are. They cannot advertise any consumer’s debt either.

False statements are prohibited.

Debt collectors may not use any false statements when collecting a debt from any debtor. Meaning, they cannot – falsely imply that they are attorneys or representatives of any government office. They cannot falsely imply that you have committed a crime. They cannot say that they operate or work for a credit bureau. They cannot misrepresent the amount of the debt that you owe. They cannot indicate that papers being sent are legal forms when they are in fact not.

Additionally, they cannot say that you will be arrested if you do not pay your debt or that they will seize, garish, attach, or sell your property or wages, unless the collection agency or the creditor intends to do so, and it is perfectly legal actions will be taken against you that legally may not be taken.

Debt collectors may additionally not give false credit information about you to anyone; send you anything that looks as though it is an official document from a court or government agency when it is not. They also cannot use a false name.

Unfair practices are prohibited.

Debt collectors may not engage in unfair practices in attempting to collect any debt from a consumer. Meaning, they cannot collect any amount greater than your debt, unless permitted by law. They cannot deposit a post dated check before the actual date that is written on the check. They cannot make you accept collect calls or pay for telegrams they may send to debtors. They cannot take or threaten to take your property unless this can be done legally. They also cannot contact you by postcard. All contact has to be in an envelope.

What control does a debtor have over payment of debts?

If you owe several debts, any payment you make must be applied to the debt you chose it to be applied towards. A debt collector cannot apply a payment to any debt you believe you do not owe.

What can a debtor do if they think a debt collector has broken a law regarding fair debt practices?

A debtor has the right to sue a debt collector in a state or federal court within one year from the date they believe the law was broken. If the debtor wins the law suit, they may recover money for the damages suffered. Court costs and attorney fees may also be rewarded to the debtor. A group of people (like a class action suit) may sue a debt collector and recover money for damages of up to $500,000, or 1% of the collectors net worth, which ever is less.

Where can a consumer report a debt collector if they think they have been wronged?

Consumers can report any problems with a debt collector to their state’s Attorney General’s office. Most states also have their own debt collection laws, and that state’s Attorney General’s office can help them figure out their exact and specific rights.

Also, check out the Federal Trade Commission. They may be of assistance too.

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