Debt collectors often get a bad rap, and for good reason. Their job is to collect debts from individuals, and they can be quite aggressive in their pursuit of payment. However, there are limits to what debt collectors can do, and it’s essential to know your rights to protect yourself from harassment and unfair practices.
Understanding The Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a federal law that regulates the behavior of debt collectors. The law prohibits debt collectors from engaging in unfair, deceptive, and abusive practices when collecting debts. The FDCPA applies to personal, family, and household debts, including credit card debt, medical bills, and mortgages.
Who Is Covered Under The FDCPA?
The FDCPA covers debt collectors who work for collection agencies, as well as lawyers who collect debts on behalf of creditors. However, the law does not apply to creditors who collect their own debts. For example, if you owe money to a credit card company, and the credit card company’s in-house collection department contacts you, the FDCPA does not apply. But if the credit card company hires a third-party collection agency to collect the debt, the FDCPA does apply.
What Debt Collectors Cannot Do
Debt collectors are prohibited from engaging in certain practices when collecting debts. Here are some things that debt collectors cannot do:
Harassment And Abuse
Debt collectors cannot harass or abuse you when collecting a debt. This includes:
- Using threats of violence or harm
- Using obscene or profane language
- Making repeated phone calls with the intent to annoy or harass
- Making false accusations or statements
Example:
A debt collector calls you at 6 am every day, leaving threatening messages on your voicemail. This is an example of harassment, and it’s prohibited under the FDCPA.
False Or Misleading Statements
Debt collectors cannot make false or misleading statements when collecting a debt. This includes:
- Falsely claiming to be a lawyer or government representative
- Falsely claiming that you owe a debt when you don’t
- Falsely claiming that you will be arrested or sued if you don’t pay the debt
- Falsely claiming that the debt collector will report the debt to a credit reporting agency
Example:
A debt collector sends you a letter stating that you owe $1,000 on a credit card debt, when in fact you only owe $500. This is an example of a false or misleading statement, and it’s prohibited under the FDCPA.
Unfair Practices
Debt collectors cannot engage in unfair practices when collecting a debt. This includes:
- Collecting interest or fees that are not authorized by the original credit agreement
- Depositing a postdated check before the date on the check
- Taking or threatening to take your property without a court order
Example:
A debt collector deposits a postdated check that you gave them, even though the check is not due to be cashed for another week. This is an example of an unfair practice, and it’s prohibited under the FDCPA.
Communication Restrictions
Debt collectors are also subject to certain communication restrictions when collecting debts. Here are some things that debt collectors cannot do:
Contacting You At Work
Debt collectors cannot contact you at work if they know that your employer prohibits such contacts. If you tell a debt collector that your employer prohibits contacts at work, they must stop contacting you at work.
Contacting Your Family Or Friends
Debt collectors cannot contact your family or friends to discuss your debt, except in certain circumstances. For example, a debt collector can contact your spouse or parent (if you are a minor) to discuss your debt. However, they cannot contact other family members or friends.
Leaving Voicemails
Debt collectors cannot leave voicemails that disclose the debt to third parties. For example, a debt collector cannot leave a voicemail that says, “This is a call from XYZ Collection Agency regarding your outstanding debt of $1,000.”
What To Do If A Debt Collector Violates The FDCPA
If a debt collector violates the FDCPA, you can take action to stop the harassment and potentially recover damages. Here are some steps you can take:
Send A Cease And Desist Letter
You can send a cease and desist letter to the debt collector, telling them to stop contacting you. You can find sample cease and desist letters online or through a consumer protection agency.
File A Complaint With The FTC
You can file a complaint with the Federal Trade Commission (FTC), which enforces the FDCPA. You can file a complaint online or by phone.
Sue The Debt Collector
You can sue the debt collector for violating the FDCPA. You may be able to recover damages, including actual damages, statutory damages, and attorney’s fees.
Conclusion
Debt collectors have a reputation for being aggressive and harassing, but there are limits to what they can do. The FDCPA prohibits debt collectors from engaging in unfair, deceptive, and abusive practices when collecting debts. If a debt collector violates the FDCPA, you can take action to stop the harassment and potentially recover damages. Remember to know your rights and assert them if a debt collector crosses the line.
Debt Collector Violations | Actions You Can Take |
---|---|
Harassment or abuse | Send a cease and desist letter, file a complaint with the FTC, or sue the debt collector |
False or misleading statements | Send a cease and desist letter, file a complaint with the FTC, or sue the debt collector |
Unfair practices | Send a cease and desist letter, file a complaint with the FTC, or sue the debt collector |
By knowing your rights and taking action when necessary, you can protect yourself from debt collector harassment and unfair practices.
What Are Debt Collectors Not Allowed To Do?
Debt collectors are not allowed to harass, oppress, or abuse you or any third parties they contact. This includes using threats of violence or harm, publishing a list of consumers who allegedly refuse to pay debts, and using obscene or profane language. They also cannot make false or misleading representations, such as falsely implying that they are attorneys or government representatives.
Additionally, debt collectors are not allowed to make false or unsubstantiated claims about the amount or status of a debt, or to threaten to take any action that they cannot or do not intend to take. They also cannot communicate with you at unusual or inconvenient times or places, such as before 8 am or after 9 pm, unless you agree to it.
Can Debt Collectors Contact My Employer Or Family Members?
Debt collectors are generally not allowed to contact your employer, except in very limited circumstances. They can contact your employer to verify your employment or to confirm your address, but they cannot discuss the debt with your employer or threaten to contact your employer unless you have given them permission to do so.
Debt collectors are also limited in their ability to contact your family members. They can contact your spouse, parent (if you are a minor), or guardian, but they cannot discuss the debt with anyone else, including other relatives or friends. They also cannot contact your family members at unusual or inconvenient times or places.
Can Debt Collectors Contact Me By Email Or Text Message?
Debt collectors can contact you by email or text message, but only if you have given them permission to do so. If you have not given them permission, they can only contact you by mail or phone. Even if you have given them permission, they must still follow the rules and regulations that apply to debt collection, including the prohibition on harassment and false or misleading representations.
If you do not want to be contacted by email or text message, you can tell the debt collector to stop contacting you in this way. You can also report the debt collector to the Federal Trade Commission (FTC) or your state Attorney General’s office if you believe they are violating the law.
Can Debt Collectors Add Fees To My Debt?
Debt collectors can add fees to your debt, but only if the original contract or agreement that created the debt allows for it. They cannot add fees that are not authorized by the contract or agreement, and they must disclose the fees to you in writing.
If you are unsure whether a fee is authorized, you can ask the debt collector to provide you with a copy of the contract or agreement that created the debt. You can also dispute the fee with the debt collector, and if necessary, report them to the FTC or your state Attorney General’s office.
Can Debt Collectors Sue Me?
Debt collectors can sue you to collect a debt, but they must follow the proper procedures and give you notice of the lawsuit. They cannot make false or misleading representations about the lawsuit, and they must provide you with accurate information about the debt and the lawsuit.
If you are sued by a debt collector, you should respond to the lawsuit and assert any defenses you may have. You can also seek the advice of an attorney, who can help you navigate the court process and protect your rights.
How Can I Stop Debt Collectors From Contacting Me?
You can stop debt collectors from contacting you by sending them a written request to cease communication. This is called a “cease and desist” letter. Once you send the letter, the debt collector can only contact you to acknowledge receipt of the letter or to notify you that they are taking a specific action, such as filing a lawsuit.
To send a cease and desist letter, you can use a sample letter or create your own letter. You should include your name, address, and account number, and clearly state that you want the debt collector to stop contacting you. You should also keep a copy of the letter for your records.
What Can I Do If I Believe A Debt Collector Has Violated My Rights?
If you believe a debt collector has violated your rights, you can report them to the FTC or your state Attorney General’s office. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB), which is responsible for enforcing the Fair Debt Collection Practices Act (FDCPA).
You can also seek the advice of an attorney, who can help you determine whether your rights have been violated and what steps you can take to protect yourself. You may also be able to sue the debt collector for damages if they have violated the FDCPA.