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Thursday, November 3, 2011
Useful Information Regarding the Fair Debt Collection Practices Act
What is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act (FDCPA) is federal law which is enforced by the Fair Trade Commission (FTC). The FDCPA makes it illegal for debt collectors to use misleading, overly aggressive, or abusive practices to collect debts from consumers. The law applies to personal and household debts, but not business debts.
How does the FDCPA help protect consumers?
The FDCPA regulates when and where debt collectors may contact you, and what debt collectors are permitted to say. Collectors may not call your employer if you inform them you are not allowed to receive phone calls at work. They are also not permitted to contact you at inconvenient hours of the day, like very early in the morning or late at night.
Debt collectors are permitted to contact third parties to get your address, phone number, or the name of your employer. However, they cannot discuss your debt with any third parties (other than your spouse or your lawyer).
Collectors are required to provide consumers with a written notice of the debt that states how much is owed, the name of the creditor, and how to dispute the debt. Never agree to pay a debt over the phone without receiving the legally required written notice.
What are Debt Collectors prohibited from saying when attempting to collect a debt?
Collectors may not use methods that harass, mislead, or deceive consumers. This includes using profanity, claiming that you have committed a crime by not paying the debt, falsely claiming the collector works for the government/court, or threatening to have you arrested if you do not pay.
Can consumers stop a Debt Collector from contacting them?
You can make a written demand to a debt collector to request they stop contacting you. After receiving a written demand, a collector may only communicate with you to tell you either: they will no longer contact you regarding the debt, or they plan to take some particular legal action. But, requesting that a collector stop contacting you does not prevent them from filing a lawsuit. If the collector obtains a judgment, they may seek to have your wages garnished or your bank account levied.
However, a debt collector may be permanently stopped from collecting a debt when a person files for bankruptcy. Once a bankruptcy case is filed, an automatic stay on all collection activities goes into effect. Debt Collectors are barred from contacting you for any reason. They may not send letters, make phone calls, file a lawsuit, obtain a judgment, garnish your wages, or levy your bank accounts. If a collector continues to contact a person who has filed bankruptcy, they may be sanctioned or fined by the court for violating the automatic stay.
If you are being harassed by creditors, contact the bankruptcy attorneys at Steigerwalt Law Firm. Our attorneys can stop creditor harassment by invoking the power of the bankruptcy code’s automatic stay. Schedule a free consultation to find out how we can help you take control of your debt and get a fresh financial start.
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