Fair Debt Collection Practice

If you have a debt to pay, your debt collector has to follow certain rules when trying to recover payment from you. Fair Debt Collection Practices takes care that you can pay your debt without being troubled too much by the collection agencies.

The debt collector ̀listed under the Fair Debt Collection Practices Act (FDCPA) include lawyers, collection agencies as well as companies buying felonious debts and then trying to collect them. They cannot use unfair or deceptive means to collect your debt. Use of abusive language is also forbidden.

FDCPA covers debts related to family, household, personal credit card, auto loan, medical bill and mortgage. However, debts incurred to run a business are not covered by the FDCPA. When collecting a debt, the collection agency has to follow certain rules. It cannot go beyond the specified norms drawn for them.

Take a look at what the collection agencies can do and cannot do when going for debt collection :

• A debt collector cannot contact you at inconvenient times unless of course you agree. You will receive debt calls only between 8 am and 9 pm and not beyond or before the limit. Your debt collector may not contact you if you have instructed them to either verbally or in writing.
• When a debt collector calls you to recover a debt talk to him. Even when you think you owe no debt, listen to what he has to say. If you have listened to the collector and then don’t want him to contact you again, then give that to him in writing. You could make a copy of your letter and send it by certified mail with a return receipt for which you have paid. By this you can document the transactions. However, this does not mean you do not have to pay your debt anymore. If you owe money you will have to pay it regardless of whether your collectors contacts you or not. They may still sue you if you don’t pay.
• If you have appointed an attorney to handle your debt, the collector must then contact the attorney and not you if there is any query about the debt. If your collector needs your number or address he might contact any one else who knows you for the details. Otherwise the debt collector has no permission to discuss any of your debt related issues.
• All debt collectors need to send a written validation notice to the debtor. This notice will let you know how much you owe them within the five days after they first contact you. This notice also includes the name of the creditor to whom you owe the money. What process you need to follow if you think you don’t owe any money is also mentioned in this validation.
• If you think you do not owe any money to a creditor, you must notify within 30 days of receiving a validation notice. Then the debt collector will not contact you. However, if there is a written verification of the debt, you might again receive calls or intimation from the collector.
• A debt collector cannot harassment, oppress or abuse you or any third party that they contact.
• A debt collector cannot give you any false statement when trying to collect debt.
• Debt collectors also cannot threaten to get you arrested if you do not pay. Or seize or sell your property unless permitted by law to take such an action.
• Debt collectors cannot fake a court document. They also cannot use a false company name to collect debt from you.
• You can control the payments that you make against any debts. You can select the debt and then make the payment if there is more than one debt and the collector has to apply the payment to that particular debt.
• If you fail to pay a debt, the collector can sue you. In case he wins the court will give judgment against you allowing the creditor to get a garnishment order against you. By this a third party (e.g. bank) may be directed to give out funds from your account to clear off the debt.
• If a debt collector violates a law, you can sue him in the state or federal court within one year from when the law was violated.
• If you happen to get sued by a collector for failure to pay back your debt, respond to the lawsuit. You can do this personally or may use a lawyer.
• If you have any problems with your debt collector, you can report it to your state Attorney-General’s office and the Federal Trade Commission.

If you are a debtor, you have the right to a fair debt payment method. You cannot be harrowed by a debtor to pay back. Nevertheless, you do have to pay back if you have a debt. But you can do it without harassment and any kind of abuse. The law protects you as a debtor and it is your duty to pay back the debt. If you are a collection agency, you are required to follow the Fair Debt Collection Practice.