Debt Consolidation

Legal Rights Of Consumers As Per Debt Collection Law

The United States of America has enacted some of the toughest laws to protect its citizens when it comes to collection of debts. As per the , consumers have been given certain legal rights. It is important for you to keep in mind that the process of collecting debts is not illegal. It is just that the agencies that offer these services should not harass or threaten debtors by any means. If they do so, they do it illegally. Legal actions can be taken against them for this.

Laws Prohibit Any Kind Of Harassment

As per the US laws in these types of cases, you have the legal right not to be harassed psychologically, physically, or by any other way. Debt collectors that harass you or threaten you actually violate the laws, and criminal charges can be placed against them.

You Can Contact The Department Of Consumer Affairs

If debt collectors threaten or intimidate you in an attempt to force you to pay the outstanding debts by using violence or by using obscene language, you have the right to file complaints at the Department of Consumer Affairs. The US debt collection law also allows you to report the incident to police and take legal actions against the collectors.

Right Regarding Phone Calls

Though debt collection agencies have the right to give phone calls to debtors, but all such calls must be made between 8 am and 9 pm. But, it does not mean that they should give dozens of calls in a single day – that will be considered as harassment. As per the law, they may not give you more than two calls per week. If they do, it will be an offense that is treated under criminal laws.

Privacy Protection

You have the right to make sure your privacy is maintained and well protected. For example, the US debt collection law prohibits debtors from revealing your financial details to others or from publicizing your debt problems. Even if they contact a third party to locate you, they must protect your privacy. They may not contact your friends, families, or employers for anything other than to locate you.

Legal Rights On Disputed Debts

If a dispute has been filed regarding debts, the collectors must stop contacting you as long as the investigation is on and until the dispute is resolved. The collection activities can be resumed if you still owe certain debts or some kind of settlement is made.

The US debt collection law also gives you the right to request in writing to stop contacting you or bothering you by any means. If this request is not honored and they still keep bothering you, you can file an FIR with the police about it. Though they cannot contact you in such cases but they can send you legal notices.


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Posted in Debt Collection Harassment, Debt Consolidation | 5 Comments »

5 Responses to “Legal Rights Of Consumers As Per Debt Collection Law”

  1. Coralie Paragas says:

    consult w a bill based financial adviser first of all..
    . they’re cheaper. otherwise, go to your local book store, and go in the financial/business section and find books regarding managing debts..
    .

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