Posts Tagged ‘Fair debt collection’

Fair Debt Collection Practices Act

When it comes to dealing with the harassments caused by debt collectors, it pays to have knowledge about what the has to say in this regard. As per this act, consumers have been given certain legal rights when a creditor hires an agency to collect debt. When you skip many monthly payments on a debt, you are likely to start receiving calls from debt collectors. Sometimes, these calls can turn out to be very harassing. Many agencies even visit the debtors’ home and harass them and their family members psychologically and even physically. All such attempts to recover debt are illegal. In order to stop such practices, the FTC (Federal Trade Commission) passed the FDCP Act. This Act has been designed in such a way that ensures privacy protection for the consumers and prevents threats and harassments.

The Fair Way To Locate A Consumer

As per Fair Debt Collection Practices Act, a debt collector is allowed to contact third parties in an attempt to locate a debtor. But, while they do so, they may not tell those third parties that the person they are looking for owes a debt and that they are debt collectors. Besides that, the laws prohibit them from contacting the same person more than once unless they have a reasonable ground, such as a solid proof that the specific third party person has complete information about the whereabouts of the debtor.

The Fair Way To Contact Debtors And To Validate Debt

Fair Debt Collection Practices Act has also made specific provisions on how they should contact the consumers (debtors) and how they should validate debt. As per the , debt collection phone calls may be made anytime between 8 am to 9 pm. It is illegal to give phone calls to the consumers before 8 am in the morning or after 9 pm in the evening. Besides that, this time frame must be as per the time zone of the consumers. The debt collectors may also visit the home of the debtor, but US laws prohibit them from contacting the debtor at a place other than his/her home, such as office and shopping store. They may not threat the debtor verbally or by any other means. All they may do is just to send the consumer a notice about the debt payment. The consumer must respond to this notice within thirty days. If there are any disputes, it must be filed within this one-month period. In case a dispute is filed, the collectors will lose their right to contact the debtor until the dispute is resolved.

Laws Prohibit Collectors From Making False Statements

Fair Debt Collection Practices Act prohibits collectors from harassing or threatening consumers by making false statements. It means giving manipulated information about debt, making false claims that they are government representatives, and threatening the consumers to arrest are illegal activities that debt collectors should not be involved in. Consumers have the right to take legal actions against them if they do so.

When An Attorney Represents A Debtor

If a debtor has hired an attorney to deal with the situation, debt collectors should make further communications with the attorney only. They may not contact the consumer anymore, or for that matter any third party.

Last, but not the least, Fair Debt Collection Practices Act also gives this legal right to consumers to request the debt collectors in writing to stop contacting them by phone, at home, or just stop all contacts. This written request must be honored, but there are certain exceptions. For example, notices regarding lawsuits or legal actions may still be sent to the consumers.

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