To
STOP debt collectors you should know the law that was passed to protect
you. Most of the following is part of a brochure from the Federal Trade Commission.
Once you know the law, we suggest you use the following tactic if you
feel the collector has stepped over the line:
While
the collector is on the phone with you tell them to "please hold
while I turn on my tape recorder, because I believe that you are in
violation of the Fair Debt Collection laws". Then fumble around,
like you are turning on your tape recorder, and ask the collector to
"state his/her name for the recording". We have found that
this tactic is very effective.
Fair
Debt Collection - A digest of information from the Federal Trade Commission
Brochure
If
you use credit cards, owe money on a personal loan, or are paying on
a home mortgage, you are a 'debtor.' If you fall behind in repaying
your creditors, or an error is made on your accounts, you may be contacted
by a 'debt collector.'
You
should know that in either situation, the Fair Debt Collection Practices
Act requires that debt collectors treat you fairly by prohibiting certain
methods of debt collection. Of course, the law does not forgive any
legitimate debt you owe.
This
brochure answers commonly asked questions about your rights under the
Fair Debt Collection Practices Act.
What
debts are covered?
Personal,
family, and household debts are covered under the Act. This includes
money owed for the purchase of an automobile, for medical care, or for
charge accounts.
Who
is a debt collector?
A
debt collector is any person, other than the creditor, who regularly
collects debts owed to others. Under a 1986 amendment to the Fair Debt
Collection Practices Act, this includes attorneys who collect debts
on a regular basis.
How
may a debt collector contact you?
A
collector may contact you in person, by mail, telephone, telegram, or
FAX. However, a debt collector may not contact you at unreasonable times
or places, such as before 8 a.m. or after 9 p.m., unless you agree.
A debt collector also may not contact you at work if the collector knows
that your employer disapproves.
Can
you stop a debt collector from contacting you?
You
can stop a collector from contacting you by writing a letter to the
collection agency telling them to stop. Once the agency receives your
letter, they may not contact you again except to say there will be no
further contact. The agency may notify you if the debt collector or
the creditor intends to take some specific action.
May
a debt collector contact anyone else about your debt?
If
you have an attorney, the debt collector may not contact anyone other
than your attorney. If you do not have an attorney, a collector may
contact other people, but only to find out where you live and work.
Collectors usually are prohibited from contacting such permissible third
parties more than once. In most cases, the collector may not tell anyone
other than you and your attorney that you owe money.
What
must the debt collector tell you about the debt?
Within
five days after you are first contacted, the collector must send you
a written notice telling you the amount of money you owe; the name of
the creditor to whom you owe the money; and what action to take if you
believe you do not owe the money.
May
a debt collector continue to contact you if you believe you do not owe
money?
A
collector may not contact you if, within 30 days after you are first
contacted, you send the collection agency a letter stating you do not
owe money. However, a collector can renew collection activities if you
are sent proof of the debt, such as a copy of a bill for the amount
owed.
What
types of debt collection practices are prohibited?
Harassment.
Debt collectors may not harass, oppress, or abuse anyone. For example,
debt collectors may not:
*
use threats of violence or harm against the person, property, or reputation;
*
publish a list of consumers who refuse to pay their debts (except to
a credit bureau);
*
use obscene or profane language;
*
repeatedly use the telephone to annoy someone;
*
telephone people without identifying themselves;
*
advertise your debt.
False
statements. Debt collectors may not use any false statements when collecting
a debt. For example, debt collectors may not:
*
falsely imply that they are attorneys or government representatives;
*
falsely imply that you have committed a crime;
*
falsely represent that they operate or work for a credit bureau;
*
misrepresent the amount of your debt;
*
misrepresent the involvement of an attorney in collecting a debt;
*
indicate that papers being sent to you are legal forms when they are
not;
*
indicate that papers being sent to you are not legal forms when they
are.
Debt
collectors also may not state that:
*
you will be arrested if you do not pay your debt;
*
they will seize, garnish, attach, or sell your property or wages, unless
the collection agency or creditor intends to do so, and it is legal
to do so;
*
actions, such as a lawsuit, will be taken against you, which legally
may not be taken, or which they do not intend to take.
Debt
collectors may not:
*
give false credit information about you to anyone;
*
send you anything that looks like an official document from a court
or government agency when it is not;
*
use a false name.
Unfair
practices. Debt collectors may not engage in unfair practices when they
try to collect a debt. For example, collectors may not:
*
collect any amount greater than your debt, unless allowed by law;
*
deposit a post-dated check prematurely;
*
make you accept collect calls or pay for telegrams;
*
take or threaten to take your property unless this can be done legally;
*
contact you by postcard.
What
control do you have over payment of debts?
If
you owe more than one debt, any payment you make must be applied to
the debt you indicate. A debt collector may not apply a payment to any
debt you believe you do not owe.
What
can you do if you believe a debt collector violated the law?
You
have the right to sue a collector in a state or federal court within
one year from the date you believe the law was violated. If you win,
you may recover money for the damages you suffered. Court costs and
attorneys fees also can be recovered. A group of people also may sue
a debt collector and recover money for damages up to $500,000, or one
percent of the collectors net worth, whichever is less.
Where
can you report a debt collector for an alleged violation?
Report
any problems you have with a debt collector to your state Attorney Generals
office and the Federal Trade Commission. Many states have their own
debt collection laws and your Attorney Generals office can help you
determine your rights.
If
you have questions about the Fair Debt Collection Practices Act, or
your rights under the Act, write: Correspondence Branch, Federal Trade
Commission, Washington, D.C. 20580. Although the FTC generally cannot
intervene in individual disputes, the information you provide may indicate
a pattern of possible law violations requiring action by the Commission.
To
obtain a free copy of Best Sellers -- a list of all the FTC's consumer
and business publications -- contact: Public Reference, Federal Trade
Commission, Washington, D.C. 20580; 202-326-2222. TDD: 202-326-2502.
