Your Rights Under the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from abuses committed by third-party debt collection agencies.

When Congress enacted the law in 1977, it noted, "There is abundant evidence of the use of abusive, deceptive and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy."

The FDCPA is designed to stop harassment, threats, unwanted calls to the workplace and the disclosure of the existence of debts to friends and neighbors. In sum, it aims to protect consumers from unfair debt collection practices.

The Act defines a debt collector, as someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis and companies that buy delinquent debts and then try to collect them.

Validation Notice

If you receive a call about a debt, demand a "validation notice." The debt collector must send you a written "validation notice" telling you how much money you owe within five days after they first contact you.

This notice also must include the name of the creditor to whom you owe the money, and what you should do, if you don't think you owe the money.

Stop Collection Calls

Collection calls can only take place between the hours of 8:00 AM and 9:00 PM, unless you have agreed to a different time. If you can't receive calls at work, you can tell the debt collector they can't call you there, and they cannot call back.

One way to stop all calls is by sending a letter (it must be in writing) telling the debt collector to stop contacting you. According to the Federal Trade Commission (FTC), here's what you have to do:

Make a copy of your letter. Send the original by certified mail, and pay for a "return receipt" so you'll be able to document what the collector received.

Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit.

Just remember, the letter should stop the calls, but the claim that you owe the debt doesn't go away.

Garnishment

If the debt collector sues you in court and wins a judgment, they can then obtain an order for garnishment, allowing them to collect the debt from your bank.

If you have been sued by a debt collector, don't ignore the papers, even if you believe them to be incorrect or wrong. If they obtain a judgment against you, you will likely have lost your best chance to dispute the debt.

Speak to a Bankruptcy Attorney

Always consult with an experienced bankruptcy attorney for advice, as they can help you determine the best course of action whether you believe you are being harassed by creditors, or your debts are so great that you can't see any way that you can pay them off. A knowledgeable bankruptcy lawyer can review your financial situation to help you come up with a viable solution to your debt crises.