Debt Collection Rules That Protect Your Rights As a DebtorDebt collection rules are guidelines which third party collection agencies must abide by when attempting to collect a debt. Debtors are protected under these guidelines spelled out in the Fair Debt Collection Practices Act. You can read more about the FDCPA. Businesses doing their own internal collections must abide by these same rules. Here are some common debt collection rules questions: How Can Debt Collectors Contact You?Third party collection agencies can reach you by telephone, fax, regular mail or email. They are forbidden to call before 8am or after 9pm, unless you agree otherwise. They also cannot contact you at your work if they know that your employer forbids such contacts.What Must Debt Collectors Disclose To You?Within 5 days of their initial contact, third party collection agencies must give you written notice stating the amount of money you owe, the name of the original creditor who you owe, and what action you are to take if you believe the debt is a mistake and you don't owe the money.Can Debt Collectors Contact Others About Your Debt?Third party collection agencies are prohibited from contacting others about your debt, except to find out where you live, where you work, and your telephone number. They cannot disclose that you owe money. If you have an attorney, they must contact your attorney, not you.Can You Stop a Debt Collector From Contacting You?You have 30 days after receiving written notice to send them a letter stating you don't owe the money. Unless they can send proof that you owe the debt, such as a copy of a bill for the amount owed, they must cease contact with you.They can then only further contact you to state there will be no further contact, or to tell you they intend to take some specific action, possibly legal. Be aware that if you actually owe the debt, simply requesting that they stop contacting you doesn't make the debt go away. They retain the right to pursue it legally, and you could be sued by either the collection agency, or the original creditor. What Recourse Do You Have if You Believe a Debt Collector Violated the Law?The Federal Trade Commission (FTC) is the primary federal regulator for collection agencies. In addition, many states have their own guidelines and regulations that a collection agency must adhere to in order to conduct business in their state. In fact, a state Attorney General has the authority to levy fines, demand damages payments, and can even restrict or shut down a collection agency for violations of that state's debt collection rules. You can sue in federal or state court within one year from the violation date. You can recover damages that you suffered, plus additional amount up to $1000. You can also recover court costs and attorney's fees. You can also contact your state Attorney General's office and the Federal Trade Commission to report any violations on the part of third party collection agencies. Types of Debt Collection Practices That Are ProhibitedHarassmentDebt collectors may not harass, oppress, or abuse you or any third parties they contact.
For example, debt collectors may not:
False statements
Debt collectors also may not state that:
Debt collectors may not:
Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:
Debt collection rules are intended to protect debtors, consumers and business owners from abusive and dishonest practices by third party collection agencies. Business owners should be aware of these debt collection rules as well. Whether they do their own in house collections, or outsource their debt collection to third party collection agencies, by operating within legal and ethical guidelines maintains both positive customer relations, as well as avoid potential legal action taken against them. Return to How To Collect A Debt from Debt Collection Rules. FREE Debt Collections |
