Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) protects consumers as it dictates to debt collectors what they can and can’t do when collecting a debt from a consumer. The United States Congress has found that there is ‘abundant evidence of the abusive deceptive and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs and to the invasion of individual privacy’s.’ A consumer has the right to sue a debt collector under the FDCPA. FDCPA violations have a $1,000 fine per violation.

Among other things, a debt collector can not misrepresent what you owe, can’t add on any extra fees that your original credit or loan agreement doesn’t allow, can’t call late in the evening or early in the morning, or call repeatedly to harass or use threats of violence. They can not threaten to sue or file charges, garnish wages, take property, cause job loss, or ruin your credit when the collector cannot or does not intend to take that action. What is more a collector can not discuss your information with outside parties without your permission.

Your rights under the FDCPA include your right to know the identity of the person calling and the exact amount of the debt claimed to be owed. The consumer also has the right for a letter to be sent within 5 days of a telephone call from the debt collector that details the amount of money owed including the name of the original creditor and what actions to take if the consumer believes they do not owe the money.

When talking with a debt collector simply ask for the name of the person calling, what company they are calling from, address, telephone number and fax number. Write the information down including the time and date of the call. Inform the debt collector you want no further contact until a debt/verification letter is received. Hang up by saying goodbye.

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