If 🐟you fail to pay a bill or repay a loan, the account balance can get reported to a debt collection agency. Creditors hire these agencies to collect debt from consumers, and this usually involves debt collectors calling you or sending a letter by mail. 🏅;
Dealing with debt collectors can be overwhelming, especially if you’re working on finding a way to repay t♉he amount you owe. The Fair Debt Collection Practices Act (FDCPA) went into effect in 1978 to protect consumers from “abusive, deceptive, and unfair debt collection practices.”
As a🎐 consumer, it’s important to know your rights under the FDCPA so you can work with debt collectors in a positive and effective way.
- What is the Fair Debt Collection Practices Act?
- How the FDCPA protects you
- What if a debt collector doesn’t follow the rules?
- Can debt collectors come to your place of work?
What is the Fair Debt Collection Practices Act?
The FDCPA is a federal law that regulates debt collection practꦡices. Und🍒er this act, debt collectors must follow specific rules meant to eliminate any instances of harassment, abuse, and false claims while trying to collect a debt.
The FDCPA also helps protect🌄 reputable debt collectors from unfair co🌱mpetition and ensures that states are following the same set of rules. This act governs debt collectors, collection agencies, debt buyers, and lawyers.
This law applies to the collection of debts for personal, family, or household uses. This can include credit card debt, unpaid medical bills, and outstanding loans. The FDCPA doesn’t cover business debts.
| Note: The FDCPA doesn’t govern debt collection by the businesses or creditors you owe money to directly. |
How the Fair Debt Collection Practices Act protects you
The FDCPA can protect you in several ways iജf you have 🌜debt in collections.
Validation of debts
A debt collector is required to provide you with basic information about the debt they’re trying to collect. This information should be sent in wri꧋ting and include the amount of the debt, the name of the cred🤡itor, and a notice that you have 30 days to dispute the debt before it’s assumed to be valid. You have a right to request verification of the debt or a copy of the judgment, if applicable.
While most legitimate debt collectors do this, it’s important to make sure you receive this information in order to verify that you owe the debt. A debt collector can’t ask you to pay an accou🍸nt if they haven’t provided this information first to confirm that ♚you actually do owe the amount they claim.
When you can be called
The Fair Debt Collection Practices Act states that the debt collector can’t communicate with you before 8 a.m. or after 9 p.m. in your time zone. This means that if you owe money to a debt collector, they can’t call you at 7 a.m. to inquire about the debt. This rule was put into place to ensure that you’re not contacted at an unre🍒asonable time.
Where you can be called
In addition, debt collectors can’t contact you anywhere that’s inconvenient to you, like your work, unless you or a court of competent jurisdiction 🍰have give𝕴n permission for this.
Harassment and abusive practices
Under the FDCPA, a debt collector can’t “harass, oppress, or abuse” you. They can’t call you repeatedly, and they must identify themselves when they contact you. A debt collector can’t use violence (or threaten to), or use other criminal means to harm you. They als🌳o can’t use obscene 🔯or profane language.
Furthermore, debt collectors can’t publish a list of consumers who allegedly refuse to pay debts unless it’s to a consumer reporting agency, and they can’t 𓆏advertise your debt for sale as a way to get you to pay it.
Finally, if you notify a debt collector in writing that you refuse to pay th꧒e debt, or ask the debt collector to stop contacting you, the debt collector must comply. At that point, the debt collector can only advise you that they’re ending debt collect𝓀ion efforts, or let you know that they may find another solution, like filing a lawsuit against you.
False and misleading claims
The FDCPA also states that debt collectors can’t make false, deceptive, or misleading claims. They can’t call you with information that they know is untrue, nor can they call you while preten🍎ding to be someone else in an attempt to collect a debt.
Unfair practices
You’re also protected against unfair practices. A debt collector can’t try to collect any unauthorized interest or fees. They can’t ask you for a postdated check 𓄧to threaten you, and they can’t communicate with you via postcard.
What to do if a debt collector breaks the rules
If a debt collector doesn’t comply with the FDCPA, you can with🔯 the Federal Tradꦺe Commission online or by phone.
You can also sue the debt collector. If you 💦successfully prove that the debt collector violated the FDCP﷽A, you could be awarded up to $1,000 in damages, plus an additional amount for any harm you suffered from the violation.
| Important: You must file a lawsuit against the debt collector within a year of the offense. |
Can debt collectors come to your place of work?
No, debt collectors can’t come to your place of work. They can’t even contact you at work if your employer prohibits thജese calls. Instead, the debt collector can inquire about your preferred method of communication moving forward. ;