The Fair Debt Collection Practices Act sets down the terms of
how a creditor may go about collecting the monies owed to him
by a debtor. Any consumer who owes money on loans, credit cards
or mortgages becomes a debtor. If you fall behind with payments,
or if mistakes on your credit record make you appear to be delinquent
in your accounts, you may have to deal with a debt collector.
Under the Fair Debt Collection Practices Act, certain methods
of collection are prohibited, and fair debt collection is guaranteed.
The Fair Debt Collection Practices Act does not relieve you of
responsibility for debts incurred, but does ensure that you have
rights when it comes to repaying those debts.
Answers to frequently asked questions such as these, are all
found in the Fair Debt Collection Practices Act.
What debts fall under the Fair Debt
Collection Practices Act?
Any monies that you owe for goods or services, is considered
a debt. This encompasses personal, household, or family debts
as well as debt incurred through credit card purchases, loans,
and items bought on installment plans.
Who will collect my debt?
A debt collector may be an employee of the creditor, a member
of a firm or company which collects debts on a creditor’s
behalf, or attorneys who also perform this service.
How will the debt collector contact
me?
A collector is required to contact you personally, with a phone
call, letter, fax, or telegram. Unless you give permission otherwise,
all contacts must be made within reasonable hours, generally considered
to be 8a.m.-9p.m. They are also not permitted to make contact
in places that would be inconvenient for the conducting of personal
business, including your workplace, if they know such contact
would be considered inappropriate by your employer.
Can I make them stop contacting me?
Yes. You may send a letter to the debt collector requesting that
they cease contact. Upon receiving it, they are then permitted
only to send you a notice that there will be no more contact,
or that the creditor is taking, or has directed them to take specific
action.
Will a debt collector tell other people
I owe money?
No. If the matter has come to the point where you have engaged
a lawyer, the collector is required to contact them to discuss
the matter, and not you. In that case they are permitted to give
details of the debts. If you do not have legal counsel with whom
they can negotiate, a collector may speak to other people in order
to obtain contact information such as where you live, your phone
number, or your place of employment. Communications with third
parties, are normally limited to one time only.
What information will the debt collector
provide?
After the initial contact has been made, the debt collector has
five days in which to send you in writing, details of how much
you owe, to whom it is owed, and what your options are if you
do not believe this is a legitimate debt.
If I don’t owe the money, will
they keep contacting me?
If you have reason to believe it is not a legitimate debt incurred
by yourself, then you have 30 days after receiving the debt collector’s
written notice, to inform them that you do not owe any money.
If the collector has, or is supplied with proof of a debt by the
creditor, such as a signed credit receipt, they are then allowed
to proceed with their collection.
What is a debt collector not allowed
to do?
Under no circumstances, may a debt collector harass you in any
manner, in person, or by repeated contacts forbidden as outlined
in the appropriate answers above.
Consult with the Fair Debt Collection Practices Act to learn
more.
