The Fair Debt Collection Practices Act is a federal law that was designed to protect the consumer against aggressive bill collection tactics. Congress added the statute to the Consumer Credit Protection Act in 1977 to deal specifically with abusive practices of debt collectors. There have been some amendments throughout the years for improved consumer protection.
Some states may have stricter regulations then the federal act. The Federal Trade Commission (FTC) at the federal level enforces the Fair Debt Collection Practices Act. This article summarizes the rights of consumers under this act. There maybe stricter regulations depending on the state where the consumer resides.
Bill Collectors Rules of Contact
Under the act, bill collectors can only contact the consumer by phone between the hours of 8:00 a.m. and 9:00 p.m. Agencies can also make contact by phone, in person, fax or by email. Debt collectors are also prohibited from contacting the consumer at the workplace once the agency knows the employer disapproves.
Stopping Bill Collectors From Contact
Sending the bill collector a written notification to stop any further contact is all that’s needed. It’s advisable to send the notification registered mail for proof. Once the agency receives the written notice, they can only contact the consumer to let them know they received the letter or if further legal action will be taken. If the consumer has an attorney, the debt collector cannot contact the consumer. All communications must be made through the attorney.
Contacting Friends or Relatives by Bill Collectors
Generally bill collectors can contact a third party such as friends or relatives but cannot mention the debt owed. The communication with a third party is pretty much limited to finding out where the consumer lives or works. They are also prohibited from contacting a specific third party more than once. Once the consumer has an attorney, the bill collectors are prohibited from contacting anyone other than the attorney.
Prohibited Harassment or Abuse by Bill Collectors
Besides rules of contact for the consumer and third parties, there are also certain conducts that are prohibited under the Fair Debt Collection Practices Act. The following is a summary of prohibited conduct by debt collectors.
- Using threats of violence to harm a person, property or reputation.
- Using obscene or profane language.
- Publishing the names of consumers that refuse to pay debts.
- Consistent ringing of the phone or consistently engaging a person in conversation meant to harass, annoy or abuse.
- Placing phone calls without disclosing the caller’s identity
If a debt collector violates the Fair Debt Collection Practices Act, the consumer can file a lawsuit for actual damages, statutory damages, court costs and attorney fees. If the consumer is found to file a false lawsuit, they could be responsible for court costs and attorney fees. If a consumer feels their rights have been violated they may consider the advice and attorney that specializes in credit and collections.
Source:
ftc.gov
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James Clausen - Clausen received a Bachelors Degree in Business Administration in Automotive Management and Marketing at Northwood University, graduating ...
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