FDCPA-Fair Debt Collection Laws and Rights.
Online Center for Fair Debt Collection Informationn
The Fair Debt Collection Practices Act (FDCPA) stands as the most important and powerful of fair debt collection laws. It was conceived in order to promote fair debt collection and prohibit debt harassment, credit harassment, and any other collection harassment practices. Several states have also passed their own fair debt collection laws to help regulate the behavior of debt collectors. Due to the nature of their work, debt collectors are aware of fair debt collection laws and the rights they pass onto consumers. However, many consumers unfortunately remain ignorant of these rights they have been granted by fair debt collection laws. Though it is sometimes uncommon, some unethical debt collectors do take advantage of this situation and their actions might lean toward collection harassment.
In order to defend the rights granted to them by fair debt collection laws, consumers should become more knowledgeable about these rights themselves, but of fair debt collection. Debtors should especially be aware of the following facts.
According to fair debt collection laws, debt collectors may contact a consumer via mail, telephone, email, telegram, fax, or in person, but not at inconvenient times and places. For example, unless they have the consumer's consent, a debt collector may not call him or her unless it is between the hours of 8:00 in the morning and 9:00 in the evening. Similarly, a debt collector may not contact a consumer at work if the debt collector has been made aware that the consumer's employer disapproves of such contact.
Fair debt collection laws also empower a consumer to end contact. A consumer can stop a debt collector from contacting them by writing a letter to the collection agency or to the actual debt collector telling them to cease contact or that he or she is refusing to pay the debt. Once the letter has been received, under fair debt collection laws, the debt collector may not contact the consumer again. Under the Fair debt collection Practices Act, there are several exceptions. If the debt collector wishes to inform the consumer that there will not be further contact or the debt collector gives notification that he or she or the creditor intends to take specific action such as a lawsuit.
If a consumer has an attorney, once the debt collector has knowledge of such legal representation, fair debt collection laws state that he or she can only contact the consumer through that attorney. If a consumer does not have an attorney, the debt collector may contact third parties only for purposes of finding out where a consumer lives, what his or her phone number is, and where his or her place of employment is located.
Normally, debt collectors are prohibited from contacting third parties for location information more than once. Under the dictums of fair debt collection laws, they have no reason for further contact. However, exceptions can be made, mostly due to judicial hearings or with the consumer's permission. In addition, according to fair debt collection laws, a debt collector may not disclose to these third parties that the consumer owes a debt. Such information can only be disclosed to the consumer and his or her attorney. The disclosure of information to third parties violates fair debt collection laws and the consumer's privacy. Thus, the consumer may file a lawsuit.
Within five days of first contact, the debt collector must send the consumer a written notice stating the amount of money owed, the name of the creditor the money is owed to, and what actions to take if the consumer believes that he or she does not owe the amount stated. A debt collector cannot contact the consumer or continue collection activities if, within 30 days after receiving the first communication of the debt, the consumer sends a letter to the collection agency stating that he or she is disputing the amount of the debt. If the consumer is sent proof of the debt, such as a copy of the bill for the amount owed, the debt collector may renew collection activities under fair debt collection laws.