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Laws
Protect Consumers From
Bill Collectors
The
FAIR DEBT COLLECTION
PRACTICES ACT, (15 USC
§1692, et. seq.)
which became law in
1977, protects consumers
from the unfair collection
practices of third-party
bill collectors. The
FDCPA applies only to
debt collectors attempting
to collect consumer
debts -- debts which
were incurred for personal,
family or household
purposes. Business or
agricultural debts are
not covered by the FDCPA
and, even if the debt
is a consumer debt,
the entity which actually
extended the credit
is not covered by the
FDCPA. For example:
Bill
collectors MAY NOT call
you or visit with you
at inconvenient times
or places. That means,
generally, before 8:00
a.m. or after 9:00 p.m.
or on your job, if you
have asked not to be
contacted there.
Bill
collectors MAY NOT discuss
your credit problems
with your family members
or friends. They may
call your family and
friends to try to locate
you, however.
If
the bill collector knows
you have a lawyer, he
must contact the lawyer
and he MAY NOT continue
to contact you.
Bill
collectors MUST STOP
contacting you if you
tell them to in writing.
Bill
collectors are FORBIDDEN
from using harassing
or abusive tactics,
such as:
-
using obscene language;
or
-
making false statements
about who they are;
or
-
using threats to make
your name public as
a "deadbeat";
or
-
repeatedly use the
telephone to harass
or annoy you; or
-
threatening to use
force against you
or harm you; or
-
sending documents
to you which look
like court documents;
or
-
threatening to send
the sheriff out to
lock you up; or
-
threatening to garnish
your wages "tomorrow".
Bill
collectors MAY NOT make
false statements to
you which:
-
imply the he/she is
an attorney or government
representative; or
-
imply that you have
committed a crime;
or
-
represent that they
operate or work for
a credit bureau; or
-
misrepresent the amount
you owe; or
-
misrepresent the involvement
of an attorney; or
-
misrepresent the legal
impact of papers being
sent to you.
- Bill
collectors MAY NOT:
-
collect any money
greater than your
debt; or
-
deposit a post-dated
check prematurely;
or
-
make you accept a
collect call or pay
for a telegram; or
-
take or threaten to
take your property
without legal process;
or
-
contact you by postcard.
Bill
collectors MAY NOT give
false information about
you to anyone, including
credit bureaus or credit
reporting agencies.
Within
FIVE DAYS of contacting
you, a bill collector
must send a written
notice to you that includes
information about your
debt, the creditor involved
and the fact that you
have 30 days to dispute
the debt. If you dispute
the debt in writing,
the bill collector has
30 days to provide written
proof of the debt or
collection efforts must
STOP.
If
a bill collector violates
the law, you have the
right to sue the collector
in state or federal
court within one year
from the date you believe
the law was violated.
If you win, you may
recover an award of
(1) actual damages,
(2) statutory damages
of up to $1,000 to the
individual consumer,
and (3) in a class action
statutory damages of
up to $500,000 or 1%
of the debt collector’s
net worth whichever
is less. Statutory damages
are a penalty against
the debt collector payable
to the consumer for
violation of his or
her FDCPA rights. The
consumer need not have
actual damages in order
to recover statutory
damages. The successful
consumer is also entitled
to an award of costs
and reasonable attorneys
fees.
DISCLAIMER
[Legal Stuff]: This
information is provided
for general information
purposes only and is
not intended to be a
legal opinion nor legal
advice nor is it intended
to be a complete discussion
of all the issues related
to the area of the Fair
Debt Collection Practices
Act or consumer bankruptcy.
Every individual's factual
situation is different
and you should seek
specific legal advice
regarding your rights.
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