Collection Agency Rules and Regulations
Is your phone ringing off the hook all day with creditors trying to reach you? Do you avoid taking phone calls because of it? Looking for a way to stop those collection agency calls? You're not going to believe how simple it is - read on!
The Fair Debt Collection Practices Act (FDCPA) sets out specific guidelines about how a collection agency may behave towards you. You should know that the Act applies not just to actual collection agencies, but to people acting as debt collectors.
Debt collectors may not:
- Contact you at unusual or inconvenient times (that means before 8:00 am and after 9:00 pm).
- Contact you at work if you are not permitted to accept such calls.
- Call you repeatedly nor call you without identifying themselves.
- Call you collect nor cause you to be responsible for any cost of the phone call.
- Identify themselves as part of law enforcement or as an attorney.
- Harass, oppress or abuse you.
- Use or threaten to use violence or harm you or anyone, or to anyone's reputation.
- Speak directly to you if you have an attorney - they must contact your attorney unless you give them permission to speak to you.
- Use obscene language.
- Place your name on a "deadbeat" list.
- Lie about the amount you owe.
- Threaten to take action against you that they do not intend to take.
- Engage in unfair or outrageous attempts to collect the money you owe.
- Add interest or fees not part of the original debt.
- Ask for a postdated check by threatening you with criminal action.
- Accept a check that is more than five days postdated unless they notify you three to ten days before cashing it.
- Deposit a postdated check before the date on it.
And here's the best news of all - YOU CAN INSTRUCT A DEBT COLLECTOR NOT TO CONTACT YOU AGAIN AND THEY MUST ABIDE BY THIS REQUEST UNLESS IT IS GIVING YOU NOTICE OF PLANS TO SUE OR TO STOP ALL COLLECTION ACTIVITY.
They must abide by this request and can only notify you by mail of the status of your account, such as when it is being forwarded to an attorney for a lawsuit. (FDCPA, Secs. 1692(c) through (f).)
Whenever you speak to a debt collector, get his or her name, name of the agency, business address and phone number. If you believe you are being treated in a way that violates the law or if your request for no contact is ignored, write to the agency and complain. Contact your state attorney general about the problem.
If a creditor violates any provision of this law, you can take action against them. Make sure that you keep detailed records and keep all evidence of the violation. If possible, you should have a witness as well, someone who saw or heard the improper act.
Send a letter to the original creditor and your state attorney general detailing the violation. You should also send a letter to the Federal Trade Commission at your regional office listed in the phone book, or online at www.ftc.gov. Use the Letter Complaining of Unfair Debt Collection Practice. You may be able to get the entire debt canceled because of this. If you have been harassed, you could also bring a case in small claims court in your local area for damages for your pain and suffering as well as punitive damages of up to $1,000 to punish the collection agency for these actions (FDACPA, Sec 1692(k)).
NOTE: I AM NOT AN ATTORNEY AND THIS IS NOT A SUBSTITUTE FOR LEGAL ADVICE. IF LEGAL ADVICE OR OTHER EXPERT ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PERSON SHOULD BE SOUGHT.
