Managing debt is stressful, and things can get messier sometimes when a debt collector becomes involved. They can call too often, lie, or even threaten you.
Fortunately, there is a law that protects you against unfair and abusive practices of debt collectors. The law is called the Fair Debt Collection Practices Act (FDCPA). It outlines rules debt collectors must follow and helps prevent abusive practices.
This article will detail the FDCPA, how it protects you, and what you can do to protect yourself in case the debt collector crosses the line.
What Is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act is a federal statute enacted in 1977 to protect consumers from unscrupulous or aggressive debt collection practices. The law applies to consumer debts for personal accounts, such as credit card debts, medical bills, car loans, and mortgages. It does not, however, cover business debts. Debt collectors work within a certain set of guidelines and limitations. If they violate any of those guidelines, you may take them to court or report their activities to governmental authorities.
What to Do If a Debt Collector Breaks the Law
You can fight back at a collector for violating your rights. Here’s how:
- Seek Legal Help: If you are unsure about your rights, you should look for experienced FDCPA lawyers. They will be able to guide you in understanding how your case looks and in taking legal action, if necessary.
- Sue Them: You can take legal action against the collector in state or federal court. If the verdict is in your favor, they might have to pay you damages incurred due to the experience and the legal fees.
- Report Them: File a complaint with the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), or your state’s attorney general.
How the FDCPA Protects You
The FDCPA specifically outlines what debt collectors can or cannot do, and some of the important protections include:
- Limited Contact: Collectors cannot call you at odd hours. Communication is only allowed between 8 a.m. and 9 p.m. Also, a collector cannot contact you at work if your employer does not allow it.
- No Harassment: Collectors cannot issue threats, use abusive language, or make several calls repeatedly to annoy you.
- Representing the truth: A debt collector cannot lie about the amount you owe. They also cannot pretend to be lawyers or government workers.
- Right to Dispute: You may challenge a debt in writing within 30 days if you think it’s wrong. After that, the collector must refrain from collection efforts until it verifies the debt.
- Privacy Protection: A debt collector cannot discuss any of your debts with other people, such as family members, employers, or coworkers. They can only contact them to confirm your address or telephone number.
What to Do If a Debt Collector Contacts You
If you hear from a collector, there is no need to panic. Stay calm and remember your rights. Here are the steps to follow:
- Ask for Proof of the Debt: You have the right to ask for written proof that the debt is real and that you owe it. Send a letter requesting this information within 30 days of their first contact.
- Keep Records: Write down the date, time, and all details of every call or letter. Such records come in handy in case you intend to take legal action against them for unlawful behavior.
- Tell Them to Stop Contacting You: You can send a letter requesting they stop calling or writing to you. After they receive your letter, they can only contact you to either acknowledge that they will cease or inform you about legal action.
- Don’t Give Personal Information: Speak carefully. Avoid sharing bank account details, social security numbers, and other private information with them.
- Know Your Payment Options: If you are willing to settle the debt, do not make any payments until the collector sends you a written agreement that you will be able to abide by.
Final Thoughts
Although debt collection can be stressful, it is always empowering to know your rights. The Fair Debt Collection Practices Act protects consumers from harassment and unfair collection methods. Once you understand this law, you will find the confidence to handle debt collectors without fear.