| Debt
Collection - Questions & Answers
Introduction
If you use credit cards, owe
money on a personal loan, or are paying on a home
mortgage, you are a "debtor." If you
fall behind in repaying your creditors, or an
error is made on your accounts, you may be contacted
by a "debt collector."
You should know that in either
situation, the Fair Debt Collection Practices
Act requires that debt collectors treat you fairly
and prohibits certain methods of debt collection.
Of course, the law does not erase any legitimate
debt you owe.
Here are some commonly asked
questions about your rights under the Fair Debt
Collection Practices Act. For additional information
or to schedule a low cost consultation to discuss
your particular circumstances, please call us
at 214-265-0808.
*Adapted from materials published
by the Federal Trade Commission
What debts are covered?
Personal, family, and household
debts are covered under the Act. This includes
money owed for the purchase of an automobile,
for medical care, or for charge accounts.
Who is a debt collector?
A debt collector is any person
who regularly collects debts owed to others. This
includes attorneys who collect debts on a regular
basis.
How may a debt collector
contact me?
A collector may contact you in
person, by mail, telephone, telegram, or fax.
However, a debt collector may not contact you
at inconvenient times or places, such as before
8 a.m. or after 9 p.m., unless you agree. A debt
collector also may not contact you at work if
the collector knows that your employer disapproves
of such contacts.
Can I stop a debt collector
from contacting me?
You can stop a debt collector
from contacting you by writing a letter to the
collector telling them to stop. Once the collector
receives your letter, they may not contact you
again except to say there will be no further contact
or to notify you that the debt collector or the
creditor intends to take some specific action.
Please note, however, that sending such a letter
to a collector does not make the debt go away
if you actually owe it. You could still be sued
by the debt collector or your original creditor.
May a debt collector
contact anyone else about my debt?
If you have an attorney, the
debt collector must contact the attorney, rather
than you. If you do not have an attorney, a collector
may contact other people, but only to find out
where you live, what your phone number is, and
where you work. Collectors usually are prohibited
from contacting such third parties more than once.
In most cases, the collector may not tell anyone
other than you and your attorney that you owe
money.
What must the debt collector
tell me about the debt?
Within five days after you are
first contacted, the collector must send you a
written notice telling you the amount of money
you owe; the name of the creditor to whom you
owe the money; and what action to take if you
believe you do not owe the money.
May a debt collector
continue to contact me if I believe I don't owe
money?
A collector may not contact you
if, within 30 days after you receive the written
notice, you send the collection agency a letter
stating you do not owe money. However, a collector
can renew collection activities if you are sent
proof of the debt, such as a copy of a bill for
the amount owed.
What types of debt collection
practices are prohibited?
Harassment: Debt collectors may
not harass, oppress, or abuse you or any third
parties they contact. For example, debt collectors
may not:
- use threats of violence or harm;
publish a list of consumers who refuse to
pay their debts (except to a credit bureau);
- use obscene or profane language;
repeatedly use the telephone to annoy someone.
- False statements: Debt collectors may not
use any false or misleading statements when
collecting a debt. For example, debt collectors
may not:
- falsely imply that they are attorneys
or government representatives;
- falsely imply that you have committed
a crime;
- falsely represent that they operate
or work for a credit bureau;
- misrepresent the amount of your debt;
- indicate that papers being sent to you
are legal forms when they are not;
- indicate that papers being sent to you
are not legal forms when they are.
Debt collectors also may not
state that:
- you will be arrested if you do not pay your
debt;
- they will seize, garnish, attach, or sell
your property or wages, unless
- the collection agency or creditor intends
to do so, and it is legal to do so;
- actions, such as a lawsuit, will be taken
against you, when such action legally may
not be taken, or when they do not intend to
take such action.
In addition, debt collectors
may not:
- give false credit information about you
to anyone, including a credit bureau;
- send you anything that looks like an official
document from a court or government agency
when it is not;
- use a false name.
Unfair practices: Debt collectors
may not engage in unfair practices when they try
to collect a debt. For example, collectors may
not:
- collect any amount greater than your debt,
unless your state law permits such a charge;
- deposit a post-dated check prematurely;
- use deception to make you accept collect
calls or pay for telegrams;
- take or threaten to take your property unless
this can be done legally;
- contact you by postcard.
What control do I have
over payment of debts?
If you owe more than one debt,
any payment you make must be applied to the debt
you indicate. A debt collector may not apply a
payment to any debt you believe you do not owe.
What can I do if I believe
a debt collector violated the law?
You have the right to sue a collector
in a state or federal court within one year from
the date the law was violated. If you win, you
may recover money for the damages you suffered
plus an additional amount up to $1,000. Court
costs and attorney's fees also can be recovered.
A group of people also may sue a debt collector
and recover money for damages up to $500,000,
or one percent of the collector's net worth, whichever
is less. If you believe that a debt collector
has violated the law, the attorneys at The Armstrong
Law Firm would be happy to discuss your concerns
with you.
Where can I report a
debt collector for an alleged violation?
Report any problems you have
with a debt collector to your state Attorney General's
office and the Federal Trade Commission. Many
states have their own debt collection laws, and
your Attorney General's office can help you determine
your rights.
How can I get more information?
The attorneys at the Armstrong
Law Firm would be glad to discuss your particular
concerns. Please contact us at 214-265-0808 or
click here to e-mail your questions. We will also
be happy to arrange a low cost consulation.
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