It’s 10:30 p.m. and you just slammed the phone down on a
persistent bill collector. Can they do that? Just want to complain about it to someone who will listen?
your rights have been violated under the Fair Debt Collection Practices Act
(‘FDCPA’). Here is what to do if you
think your rights may have been violated:
about your rights under the FDCPA. The
prime goal of the Act is to curtail abusive, deceptive and unfair debt
collection practices.- If
your rights have been violated complain to the FTC – they will read your
complaint.
will listen. It is their job to ensure that debt collectors comply with the FDCPA.
In fact every year they are required to report to Congress on the steps they
have taken to curtail illegal debt collection practices and on the types of
complaints they receive. Here is a
summary of the 66,627 complaints received by the FTC in 2005 that are
considered violations of third-party collectors. Many consumers never complain, while others
complain about activities that do not violate any law.
a larger payment than is permitted: Of the complaints the FTC received in 2005, 42.7% of the consumers
alleged that third-party collectors misrepresented the actual debt. The FDCPA prohibits debt collectors from:
- Misrepresenting the character of the debt;
- Misrepresenting the amount owed;
- Misrepresenting the legal status of a debt.
- From collecting any extra amount unless it is
specifically spelled out in the original agreement.
This means collectors must tell you exactly how much you owe;
They may not add interest or late fees or any other expenses or fees that are
not allowed in the original agreement you had with your creditor.
consumers alleging that collectors harassed them. The FDCPA prohibits collectors from:
- Repeatedly or continuously calling especially if you have asked them to stop calling;
- Using obscene, profane or abusive language;
- Calling very early or very late at night; or
- Threatening you with violence.
false or misleading threats unless the collector has both the legal authority and
intent to take the threatened action. This means that third party collectors has the legal authority to take
you to court it may not threaten to:
- Sue you;
- Garnish your wages;
- Send you to jail or
- Ruin your credit rating.
Revealing your
debt to 3rd parties: Unless you authorize a collector to contact a third party, a third-party
collector may not in general contact anyone else for any purpose related to you
except to obtain information about your location. Most of the complaints in
this category alleged that collectors contacted unauthorized third parties
repeatedly. Keep in mind a debt
collector is not permitted to contact anyone to find out information about you
that it already has in its possession Learn more about what collectors can say
or may not say.
Proper Notice:
The Act requires debt collectors to send you a written notice that includes, among
other things, describes the amount of the debt, creditor, and a statement
informing you of your right to dispute the debt in writing. Many consumers complained that debt
collectors failed to identify the name of the collection company. It is good
practice to always ask the name of the company and party you speak to, so you
can complain about their debt collection practices if they operate
illegally.
Verifying Disputed
Debts: The Act prohibits debt
collectors from making further contact with a debtor who disputes a debt until
the collector can verify the debt. This means that the collector may NOT
contact you between the date when you submit a dispute and the time when the
collectors provide you with verification of the debt. This will not make a
legitimate debt go away. Learn how to dispute the debt – What if you don’t
think you owe money to the creditor?
Stop Calling
request: The Act requires that a
third party collector must not contact you if:
- You
submit a written request or demand to the third party collector not to call;
or - You
tell them in writing not to call you because you are not going to pay the debt
– which you refuse to pay the debt.
This does not mean the debt goes
away or that the creditor, or collector (if legally authorized to bring suit) will
not fie suit against you. But it will stop the collector from contacting you by
phone or in writing.
In-house
collectors: The FTC received
23,605 complaints about creditors that collect their own debts. Because
creditors are generally not covered by the FDCPA the FTC will still take
complaints and may pursue in-house collectors who employ a no-holds- barred
tactics.
What should you do
if you feel your rights have been violated? Learn more about what you
can do if you think a Debt Collector broke the law. Share your feedback, stories or questions in the comments section below.