If you’re behind in paying
your bills, or a creditor’s records mistakenly make it appear that you are, a
debt collector may be contacting you.
The Federal Trade Commission
(FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection
Practices Act (FDCPA), which prohibits debt collectors from using abusive,
unfair, or deceptive practices to collect from you.
Under the FDCPA, a debt
collector is 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.
Here are some questions and
answers about your rights under the Act.
What types of debts are covered?
The Act covers personal,
family, and household debts, including money you owe on a personal credit card
account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn’t
cover debts you incurred to run a business.
Can a debt collector contact me any time or any
place?
No. A debt collector may not
contact you at inconvenient times or places, such as before 8 in the morning or
after 9 at night, unless you agree to it. And collectors may not contact you at
work if they’re told (orally or in writing) that you’re not allowed to get calls
there.
How can I stop a debt collector from contacting
me?
If a collector contacts you
about a debt, you may want to talk to them at least once to see if you can
resolve the matter – even if you don’t think you owe the debt, can’t repay it
immediately, or think that the collector is contacting you by mistake. If you
decide after contacting the debt collector that you don’t want the collector to
contact you again, tell the collector – in writing – to stop contacting you.
Here’s how to do that:
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. Sending such a letter to a debt collector you owe money to does not
get rid of the debt, but it should stop the contact. The creditor or the debt
collector still can sue you to collect the debt.
Can a debt collector contact anyone else about my
debt?
If an attorney is
representing you about the debt, the debt collector must contact the attorney,
rather than you. If you don’t have an attorney, a collector may contact other
people – but only to find out your address, your home phone number, and where
you work. Collectors usually are prohibited from contacting third parties more
than once. Other than to obtain this location information about you, a debt
collector generally is not permitted to discuss your debt with anyone other
than you, your spouse, or your attorney.
What does the debt collector have to tell me
about the debt?
Every 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 how to proceed if you don’t think
you owe the money.
Can a debt collector keep contacting me if I
don’t think I owe any money?
If you send the debt
collector a letter stating that you don’t owe any or all of the money, or
asking for verification of the debt, that collector must stop contacting you.
You have to send that letter within 30 days after you receive the validation
notice. But a collector can begin contacting you again if it sends you written
verification of the debt, like a copy of a bill for the amount you owe.
What practices are off limits for debt collectors?
Harassment. Debt collectors may not harass, oppress, or
abuse you or any third parties they contact. For example, they may not:
- use threats of violence or harm;
- publish a list of names of people who refuse to pay
their debts (but they can give this information to the credit reporting
companies);
- use obscene or profane language; or
- repeatedly use the phone to annoy someone.
False
statements. Debt
collectors may not lie when they are trying to collect a debt. For example,
they may not:
- falsely claim that they are attorneys or government
representatives;
- falsely claim that you have committed a crime;
- falsely represent that they operate or work for a credit
reporting company;
- misrepresent the amount you owe;
- indicate that papers they send you are legal forms if
they aren’t; or
- indicate that papers they send to you aren’t legal forms
if they are.
Debt collectors
also are prohibited from saying that:
- you will be arrested if you don’t pay your debt;
- they’ll seize, garnish, attach, or sell your property or
wages unless they are permitted by law to take the action and intend to do
so; or
- legal action will be taken against you, if doing so
would be illegal or if they don’t intend to take the action.
Debt collectors
may not:
- give false credit information about you to anyone,
including a credit reporting company;
- send you anything that looks like an official document
from a court or government agency if it isn’t; or
- use a false company name.
Unfair
practices. Debt collectors
may not engage in unfair practices when they try to collect a debt. For
example, they may not:
- try to collect any interest, fee, or other charge on top
of the amount you owe unless the contract that created your debt – or your
state law – allows the charge;
- deposit a post-dated check early;
- take or threaten to take your property unless it can be
done legally; or
- contact you by postcard.
Can I control which debts my payments apply to?
Yes. If a debt collector is
trying to collect more than one debt from you, the collector must apply any
payment you make to the debt you select. Equally important, a debt collector
may not apply a payment to a debt you don’t think you owe.
Can a debt collector garnish my bank account or
my wages?
If you don’t pay a debt, a
creditor or its debt collector generally can sue you to collect. If they win,
the court will enter a judgment against you. The judgment states the amount of
money you owe, and allows the creditor or collector to get a garnishment order
against you, directing a third party, like your bank, to turn over funds from
your account to pay the debt.
Wage garnishment happens
when your employer withholds part of your compensation to pay your debts. Your
wages usually can be garnished only as the result of a court order. Don’t
ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage
garnishment.
Can federal benefits be garnished?
Many federal benefits are
exempt from garnishment, including:
- Social Security Benefits
- Supplemental Security Income (SSI) Benefits
- Veterans’ Benefits
- Civil Service and Federal Retirement and Disability
Benefits
- Military Annuities and Survivors’ Benefits
- Federal Emergency Management Agency Federal Disaster
Assistance
Federal benefits may be
garnished under certain circumstances, including to pay delinquent taxes,
alimony, child support, or student loans.
Do I have any recourse if I think a debt
collector has 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, the judge can require the collector to pay you for any
damages you can prove you suffered because of the illegal collection practices,
like lost wages and medical bills. The judge can require the debt collector to
pay you up to $1,000, even if you can’t prove that you suffered actual damages.
You also can be reimbursed for your attorney’s fees and court costs. A group of
people also may sue a debt collector as part of a class action lawsuit and
recover money for damages up to $500,000, or one percent of the collector’s net
worth, whichever amount is lower. Even if a debt collector violates the FDCPA
in trying to collect a debt, the debt does not go away if you owe it.
What should I do if a debt collector sues me?
If a debt collector files a
lawsuit against you to collect a debt, respond to the lawsuit, either
personally or through your lawyer, by the date specified in the court papers to
preserve your rights
.
Where do 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, the Federal
Trade Commission, and the Consumer Financial Protection Bureau. Many
states have their own debt collection laws that are different from the federal
Fair Debt Collection Practices Act. Your Attorney General’s office can help you
determine your rights under your state’s law.
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