If you're behind on paying your bills (or a creditor's records mistakenly make it appear so), a debt collector may be contacting you.
Under the federal Fair Debt Collection Practices Act (FDCPA), debt collectors cannot use abusive, unfair or deceptive practices. Here are some common questions:
What types of debts are covered by the FDCPA?
Personal, family and household debts, including money you owe on a credit card, auto loan, medical bill or mortgage. It doesn't cover debts incurred to run a business.
When can a debt collector contact me?
A debt collector may not contact you before 8 a.m. or after 9 p.m., unless you agree. Collectors cannot contact you at work if told (orally or in writing) that you're not allowed to take calls.
How can I stop a debt collector from contacting me?
Talk with them at least once to see if you can resolve the matter, even if you can't repay immediately or think the bill is in error. If you don't want collectors contacting you again, tell them – in writing, by certified mail – to stop. They may not contact you again, except: to tell you there will be no further contact or to inform you of a specific action, such as a lawsuit.
However, sending a letter does not get rid of your debt. The debt collector can still sue you to collect.
Can a debt collector contact anyone else about my debt?
If you're represented by an attorney, the debt collector must contact the attorney, not you. If you don't have an attorney, a collector may contact others – but only to find your address, home phone number and where you work. Generally, a debt collector is not permitted to discuss your debt with anyone other than you, your spouse or attorney.
What must the debt collector tell me about the debt?
Within five days of first contacting you, a collector must send a written "validation notice" stating how much you owe, the creditor's name and how to proceed if you don't think the money is owed.
What practices are prohibited by debt collectors?
Harassment, lying and making threats.
They cannot:
Use threats of harm or violence; use obscene or profane language; repeatedly use the phone to annoy someone; publish a list of people who refuse to pay their debts; claim they are attorneys, government agents or work for a credit reporting bureau; falsely claim you have committed a crime or will be arrested if you don't pay; try to collect interest, fees or other charges unless your credit contract allows them; deposit a post-dated check early; contact you by postcard.
Can I control which debts my payments apply to?
Yes. If a debt collector is trying to collect more than one debt, payments must be made to debts you select. Also, payments cannot be applied to a debt you don't think you owe.
Can a debt collector garnish my bank account or wages?
Yes, if it's done by a court order. If you don't pay a debt, a creditor generally can sue you to collect. If they win, the court will enter a judgment against you, stating the amount of money you owe. It also allows a garnishment order directing a third party, such as your bank or employer, to turn over your funds as payment. Don't ignore a lawsuit summons. If you do, you'll lose the chance to fight a wage garnishment.
What if I think a debt collector has violated the law?
You have the right to sue a collector in state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay for any damages suffered, such as lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can't prove actual damages. You also can be reimbursed for your attorney's fees and court costs.
Note: Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.
What should I do if a debt collector sues me?
Respond to the lawsuit, either personally or through your lawyer, by the date specified, to preserve your rights.
How do I report a debt collector's alleged violation?
Contact your state attorney general's office (www.naag.org) and the Federal Trade Commission (www.ftc.gov or call (877) FTC-HELP).
For more information, go to: www.ftc.gov/credit and www.MyMoney.gov.
– Source: Federal Trade Commission
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