FROM:

Fair Debt Collection Practices Act:
How To Deal With Debt Collectors

The Fair Debt Collection Practices Act (FDCPA) protects you from deceptive and unscrupulous tactics by debt collection agencies, individual debt collectors, and collection attorneys. If you are being harassed by debt collectors, you need to know your rights as a consumer. It is well worth your time to learn about your rights under the Fair Debt Collection Practices Act. Debt collectors rely upon ignorance of the law to collect debts, so arm yourself with knowledge and defend your rights!

News Flash: The Federal Trade Commission Nails A Large Collection Agency
For Violating The Fair Debt Collection Practices Act !

The Fair Debt Collection Practices Act (FDCPA) was enacted to protect consumers from abusive, deceptive, and unfair treatment by debt collectors. The Federal Trade Commission (FTC) monitors and enforces compliance with the FDCPA. If the FTC receives a sufficient number of complaints about a particular debt collection agency, it will conduct an investigation and take the appropriate action. However, the FTC does not intervene in individual disputes. If you are the victim of FDCPA violations, you should file a complaint with your state Attorney General or local consumer protection agency for assistance with your situation. You should still send a copy of your complaint to the Federal Trade Commission, so they will know about collection agencies that violate consumers' rights. Click Here to find out why you should contact the Federal Trade Commission if you have a complaint against a collection agency!

The terms "debt collector" and "collection agency" have the same meaning. A debt collector is a third-party agency assigned the task of collecting allegedly delinquent debts. The Fair Debt Collection Practices Act applies to debt collectors, as well as to lawyers who regularly engage in debt collection activities that do not involve the court system. A company's own internal collection department is classified as a "creditor", not a "debt collector": The Fair Debt Collection Practices Act does not apply to creditors (but there are plenty of state laws that do).

Communicate with debt collectors only in writing. Refuse to communicate with them in person or by telephone. Debt collectors prefer oral forms of communication because it works to their advantage. Written communication works to your advantage because you have a record of everything that they say. Debt collectors are less likely to use unfair and deceptive tactics if they have to put what they say in writing.

There are no laws that require you to speak to debt collectors on the telephone. There are no laws against hanging up on debt collectors. If a debt collector calls, say "Whatever you have to say, send it to me in writing." If the debt collector persists in trying to talk to you on the phone, simply hang up. This is not the time to worry about being polite. Record the dates and times that they call you. Calling you excessively to harass or annoy you is a violation of the Fair Debt Collection Practices Act.

A collection agency is required by law to send a written statement to you explaining your right to dispute the debt. If the debt is questionable or bogus, you should wait for the written statement from the debt collector and send your response in writing. Your written response should state that you dispute the debt and that you request verification of the debt. If you send your written response within 30 days of receiving their statement about your right to dispute, the collection agency is not permitted to contact you until the verification is sent. {You should send your response by certified mail so you will have proof that you sent it.}

If you receive a letter from a collection agency telling you to call their office "immediately", don't do it. You are not required to call them. Communicate with debt collectors only in writing.

If a debt collector sends you a letter asking for your phone number, do not give it. You are NOT required to give your phone number to a debt collector.

Send your letters by certified mail with return receipt or by registered mail. This way, you will have proof of the dates that your letters were received by the debt collector.

Letters from debt collectors state that the purpose of their letter is to collect a debt and that any information obtained will be used for that purpose. This means that they will use any information you provide to try to force you to pay. Don't give them any information unless it is solid, physical proof that you don't owe the debt (send copies, not originals).

Save copies of everything-- letters and envelopes from the debt collector, letters to the debt collector, receipts from certified letters, detailed notes, proof of payments, etc. Store these items together in a safe place.

Within 5 days after a collection agency first contacts you, it is required by the Fair Debt Collection Practices Act (FDCPA) to send you a letter with a statement about your right to dispute the debt, as well as your right to receive information about the debt. These letters contain other statements that are designed to induce you to pay-- it may not be easy to find the part about your rights. The statement about your rights may be written on the front of the letter or on the back. The statement generally reads as follows:

"Unless you notify this office within 30 days of receiving this notice that you dispute the validity of the debt, or any portion thereof, this office will assume the debt is valid. If you notify this office in writing within 30 days of receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail a copy of such judgment or verification to you. If you request from this office in writing within 30 days of receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor."

If you receive a letter from a debt collector for a debt you do not owe, or are not sure you owe, send a written response as soon as possible. It is best to send your response by certified mail with return receipt. Never respond with a phone call. Here is an example of what you can write in your response letter:

"I dispute the validity of the debt referenced by your agency as account #_________. This is a formal request to receive verification of the debt, per my rights under the Fair Debt Collection Practices Act. Additionally, I hereby request that you send me the name and address of the original creditor, if it is different from the current creditor. I request that you cease communication with me except to provide written verification of the alleged debt. Please be advised that you are required by law to notify all Consumer Reporting Agencies to whom you have reported this debt that this debt is disputed."

You will need to include your account number in your letter(s) to the collection agency. {You are not required to provide your phone number.} You should save copies of everything-- their letters, your letters, return receipts from certified mail, etc.

IMPORTANT: Your request for verification must be made in writing and it must be mailed within 30 days of receiving the letter from the debt collector containing the statement about your rights. The debt collector is not permitted to contact you until the verification is sent.

If you do not send a written response within 30 days of receiving the statement about your rights from the collection agency, it is NOT considered an admission by you that the debt is legitimate. You still have the right to send a letter requesting that the debt collector cease communication with you.

Don't pay debts you do not owe! If you pay a debt collector, it is considered an admission that you owe the debt. Paid collection accounts are virtually impossible to remove from your credit report and they stay on your record for seven years. Unpaid collection accounts can be removed from your credit report if the creditor can not verify the debt. 

You have the right to request the debt collector to cease communication with you. There is no time limit for making this request, but it must be made in writing. You should send the request by certified or registered mail, so you will have proof that it was received. Once the collection agency receives your "cease- comm" letter, it can only contact you to inform you of any action it intends to take or to tell you that it is terminating its efforts to collect the debt. Upon receiving your "cease- comm" letter, the collection agency is forbidden by the Fair Debt Collection Practices Act (FDCPA) to dun you. NOTE: This procedure will not erase a legitimate debt.

When you are first contacted by a collection agency for a questionable or bogus debt, send a certified or registered letter to the collection agency as soon as possible. In your letter, state 1) that you dispute the debt; 2) that you request verification of the debt; 3) that you request the name and address of the original creditor; 4) that you request the debt collector to cease communication with you except to send the information you requested. Be aware that you are not required to speak to debt collectors on the phone and there are no laws against hanging up on them. If you find out that you really do owe the debt, send your payment to the creditor, not to the collection agency.

The following actions are illegal:

A debt collector calls you at work and knows that it is inconvenient or that your employer forbids it.

A debt collector calls you before 8:00AM or after 9:00PM in your time zone.

A debt collector makes an excessive number of phone calls to annoy or harass you.

A debt collector knows that you are represented by an attorney, whose contact information is known or is easy to locate, and the debt collector continues to dun you.

A debt collector tells a person other than you, your spouse, or your attorney that you owe money. (If you are a minor, the debt collector can tell your parents or guardians about the debt) Debt collectors can only communicate with any other people to obtain contact information about you.

A debt collector misrepresents the amount, character, or legal status of a debt.

A debt collector gives others credit information about you that is false, or should be known to be false.

A debt collector fails to honor your dispute or cease communication rights.

A debt collector threatens to take your property or garnish your wages if this action would not be legal or if the debt collector does not intend to do it. Your property can not be taken and your wages can not be garnished without a court order (judgment).

A debt collector uses, or threatens to use, violence or any other illegal means to harm you, your family, your reputation, or your property.

A debt collector uses profane or obscene language in communicating with you.

A debt collector threatens you with criminal prosecution or implies that you have committed a crime. Debt and credit issues are matters of civil law, not criminal law.

A debt collector tricks you into accepting charges for collect calls, telegrams, C.O.D.'s, etc.

A debt collector cashes, or threatens to cash, a post-dated check before the date written on the check, if the check is post-dated by 5 days or more.

A debt collector does not give 3 to 10 days advance notice before cashing a check that is post-dated by 5 days or more.

A debt collector claims to be an attorney or sends a letter made to look like it is from an attorney (unless the debt collector really is an attorney).

A debt collector sends a letter that is made to look like a government or court document when it isn't.

A debt collector sends a government or court document that is not recognizable as such.

A debt collector threatens any action against you that is not legally feasible or that the debt collector does not intend to take.

If you file a lawsuit against a debt collector within one year of the date your FDCPA rights were first violated, you could receive up to $1,000, plus actual damages and attorney fees. As a named plaintiff in a class action you could also receive up to $1,000, plus actual damages and attorney fees.

If a debt collector takes you to court, you can counter-sue if the debt collector has violated the FDCPA and/or other laws. The one-year statute of limitations for suing FDCPA violators does not apply if you are not the one who initiates the lawsuit.

Your chances of winning a lawsuit are greatest if you can prove that the debt collector frequently and persistently violated the FDCPA and if your attorney can present a persuasive argument that the violations were intentional. The more evidence you have, the greater your chance of winning the lawsuit.

If a debt collector has violated your rights under the Fair Debt Collection Practices Act (FDCPA), you can write a letter to your state Attorney General's Office. Include copies (not originals) of any documentation you may have, such as proof of payment, letters to or from the debt collector, etc. Your Attorney General's Office should be able to help you or refer you to an agency that can help you. Send a copy of these materials to the Federal Trade Commission, as well. The Federal Trade Commission does not intervene in individual disputes, but you can help put a stop to illegal debt collection activities by notifying them of FDCPA violations.

This article is not represented as an official or complete presentation of the Fair Debt Collection Practices Act. The advice contained in this article is offered as friendly advice-- not as legal advice. The contents of this article are not to be used as a substitute for legal counsel. The information in this article is given in good faith and the intention of its author is to promote consumer education. Consumer Aid Education Center and the author of this article assume no liability for the ways in which this article is read, interpreted, acted upon, or otherwise used. This article was researched and written for the benefit of people who are being pursued for questionable or bogus debts. It is not intended to help people avoid paying legitimate debts.

Permission to reproduce this article is hereby granted provided that said article is not modified, abbreviated, or used for profit; and if said article is used for no purpose other than consumer education. © Copyright 1997- 1999 Consumer Aid Education Center.

The text of the Fair Debt Collection Practices Act is on the FTC Website

CAEC maintains no corporate or government affiliations