How to Deal With Debt Collectors
What is Fair Debt Collection?
To answer this, you
need to know, who is a debtor. A debtor is anyone who uses credit cards,
owes money, has a personal loan or has a home mortgage. If you happen
to fall behind on payment of any of these debts, chances are you will
be contacted by a "debt collector."
The Fair Debt Collection
Act is a debtor's safeguard to assuring that you are treated fairly and
your rights are not violated. Even though your rights are protected by
this act you are not protected from owing the debt you incur if it is
legitimate. The Fair Debt Collection Act protects you from any household,
personal or family debt. This includes money that is owed for charge accounts,
medical care and the purchase of automobiles.
If you find yourself
contacted by a debt collector which can include any person or organization
of regularly collects debts owed to Attorneys, following are the things
you need to know.
1. You may be contacted
in person, by mail, telephone, telegram or fax. But you can not be contacted
at any time before 8:00 A.M. or after 9:00 P.M. unless you agree and make
special arrangements. Also, a collector may not contact you at your place
of employment if they know that your employer disapproves of such contact
and it can jeopardize you job.
2. You can stop a
debt collector from contacting you by stating in writing that you wish
them to cease contact with you. Once your letter is received they may
contact you one final time to tell you that their will no longer be contacting
you and to inform you of what action they intend to take to resolve the
issue. Note that you sending a letter to cease communications do not make
the debt go away. Most likely you will be pursued through the court system
and legal action taken.
3. A debt collector
should only contact you in person unless you provide them with the name
of an attorney that will be handling your case. If you provide attorney
information then all contact will be made through your attorney. The only
reason a collector may contact another person is to find out where you
live, your phone number or where you work. Even though they may contact
a third party they are usually prohibited from contacting them more than
once and disclosing the fact that you owe money or that they are attempting
to collect a debt.
4. A debt collector
must inform you of what the debt in question is. Within five days after
the initial contact they must send you a written notice that includes
the amount of debt owed, the creditor claiming the debt and the action
you should take if you do not believe you owe the debt.
5. If you as a debtor
respond to the written notice within 30 days or the written communication
from the debt collector stating that you do not owe the alleged debt then
the collector may not contact you. Although, be aware that a collector
can renew its collection activities if you are sent proof of debt such
as a copy of the bill for the amount owed.
Your best defense against a bill collector is being well informed of your
rights. There are some things that a bill collector is prohibited from
doing.
1. Debt collectors
can not harass you or a third party or be abusive and oppressive in anyway.
2. They cannot threaten
violence or harm
3. Publish a list
of consumers who refuse to pay their debts except to a credit bureau.
4. Use obscene or
foul language or repeatedly call your phone.
5. they may not use
false or misleading statements such as imply that they are attorneys,
that you have committed a crime, represent that they work for a credit
bureau or mislead you with documents weather they are legal or not.
6. they can not state
that you will be arrested if you do not pay, that they will seize property
or garnish wages unless it is legal to do so.
Collectors are also
not permitted to engage in unfair practices such as:
1. Collect an amount
greater than is owed unless the state law permits them to do so.
2. Deposit a post
dated check prematurely.
If you feel that
you have been treated unfairly by a debt collector you have the right
to sue a collector in a state or federal court within one year from the
date the law was violated. You should also contact and report any problems
to your states Attorney Generals office and the Federal Trade Commission.
Most states have their own debt collection laws and your Attorney Generals
office can help you determine your rights.
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