Debt Collection Laws Debt Consolidation

Debt Collection Laws

October 3rd, 2009 Admin Leave a comment Go to comments

If you are behind in payments and the debt collectors are beginning to call, you might want to educate yourself on what actions bill collectors legally can and cannot perform. Before outlining the do’s and don’ts, it is important to recognize most debts expire at some period of time. Check your state’s statute of limitation for details specific to you.

In addition to your state’s debt collection laws, there is a federal act that protects consumers from harassment and unfair practices. The Fair Debt Collection Practices Act (FDCPA) outlines the rules bill collectors and collection attorneys must follow when attempting to recover debt. Rules from the act you should know:

Harassment is not allowed. Bill collectors can be very persistent. At some point, you may wonder if their persistency has become harassment. According to the FDCPA, bill collectors can not threaten you or a third party such as a family member or friend with violence or harm. Obscene or profane language is illegal as is repeatedly using the telephone for the purpose of annoying you. Collectors also cannot embarrass you by publishing a list of those who owe money. Making false statements is not allowed. Bill collectors can be very inventive when trying to recover a debt; however, making false statements to try to get you to pay is a no-no. Bill collectors can not lie when trying to collect from you. Your wages or bank account can be garnished. If you have failed to pay a debt you owe, a lawsuit was filed and the court ordered your bank account or wages to be garnished, this is totally legal. Contacting you at inconvenient hours is a violation. Calling before 8:00a.m. or after 9:00p.m. is considered inconvenient unless you have agreed to it. Contacting you at work may be allowed. Unless you have told the bill collector (verbally or in writing) that you cannot accept personal telephone calls at work, bill collectors can continue to contact you at work. Your friends and family can be contacted. While your debt can not be discussed, bill collectors can legally contact your family and friends (also known as a third party) in order to obtain information about your location. In particular, they are seeking information on your address, telephone number and place of work. Unless the third party gave false or incorrect information, they can only be contacted once by the bill collector. If you think a bill collector or collection attorney has violated the rules of the Fair Debt Collection Practices Act, you do have recourse. You can sue the bill collector; however you must file suit within one year from the date the law was violated. Be sure to safely secure all evidence of violation of the law. If the bill collector’s actions were verbal, journal the entire conversation for use in court.

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