Most people in this economy take on debt. It may be in the form of credit cards, medical bills, or car loans, and help you take care of immediate needs before you have the cash. Unfortunately, circumstances can happen that make it difficult for those debts to be paid, such as losing a job. The Fair Debt Collection Practices Act is in place to make it clear what debt collectors can and cannot do on behalf of creditors when consumers get behind on payments.
So, what is the purpose of the Fair Debt Collection Practices Act (FDCPA)?
It specifies for debt collection companies how they are permitted to conduct business. It also is specific about the rights and responsibilities you have if you are contacted by debt collectors.
The FDCPA is enforced by the Federal Trade Commission. It originated in the House of Representatives in 1977 to protect consumers from abuse.
So, What Are Some Ways This Act Protects You?
Thanks to this act, you should never receive a phone call at eleven at night from someone claiming to be from Experian saying that unless you give them $500 to pay your Macy’s card, they are going to report you to the local authorities.
First off, the FDCPA specifies that calls can only be made from 8 am to 9 pm. Debt collection companies must identify they are calling to collect a debt and cannot misrepresent their company, so they cannot claim to be a consumer reporting agency. This kind of manipulation and fear tactic is against the law.
Legal counsel can become a part of the process with debt collection companies when court cases are involved. But a debt collection company cannot call and threaten you with legal action if you don’t give them money over the phone.
The FDCPA clarifies legal action and the debt collection process. For instance, if you contact a law firm to handle debts for you, they will reach out to the collectors who can only deal with them moving forward. You will no longer have to communicate with the collectors.
So, What Are Debt Collection Agencies Allowed to do?
The purpose of their call, as they are supposed to say, is to collect a debt. Debt collection agencies are allowed to do this in a fair manner, which means they are supposed to be clear about why they are calling, who they represent, and how the situation can be resolved. When they deviate from these guidelines and are untruthful, misleading, or harassing, they break fair practices and violate the law.
Harassing can come in the form of the frequency of phone calls or the language used in the calls. It can also involve threats to your reputation, self, or property. Debt collectors are to do their job with no coercion, threats, or lies.
Related Questions
What About Collections Through the Mail?
Debt collection companies can communicate with you through the mail. They are, however, not permitted to send information about a debt on a postcard. If you receive a letter, it will come with just the company’s address on it. It will not say on the outside that it is from a debt collection agency. You will have 30 days to dispute the request if it is wrong.
Can Debt Collectors Call Your Work?
Debt collectors can contact you at work unless they are told that you are not permitted to take calls of that nature while at work. Simply tell the caller you are not allowed to talk about these personal matters at work time. Debt collection companies are not permitted to garnish wages unless it is through a court order, so if a caller threatens this when reaching you at work, they are wrong.
Summary
The FDCPA protects you from being harassed by debt collectors using unfair, manipulative tactics to settle bills. Abuse still occurs, but because of this act, you have a law that holds violators accountable and values fairness for all parties.
If you are in debt that is overwhelming and its difficult to make ends meet, having a debt collector calling you is adding to your stress. It may be time to consider personal bankruptcy. The first step is speak with a bankruptcy attorney and see if you qualify.
Filing for bankruptcy will stop the debt collection process and provide you time to navigate bankruptcy and set a plan for a new financial path. A bankruptcy firm such as Hines Law in Massachusetts has the knowledge and expertise to help you with your debt solution. Our bankruptcy attorneys are available for a Free Consultation to help you get started. Call today.