Fair Debt Collection Act

People fail to meet their credit obligations for a number of reasons. Examples can be unemployment, illness, etc.

The Federal Fair Debt Collection Practices Act protects every person. Congress passed this act to protect consumers from harassment by debt collectors.

What Debts are covered?

Personal, family, and household debts are covered under the Fair Debt Collection Act.

How may a debtor contact you?

A debt collector may contact you in person, by mail, telephone, telegram, or fax. However, A debt collector may NOT contact a debtor:

  • before 8 a.m. or after 9 p.m.
  • at inconvenient or unreasonable places
  • at your place of employment if it is known the employer prohibits such contact
  • if an attorney is known to represent the debtor, the attorney should be contacted instead

    • Debt collection practices that are prohibited:

    Harassment: Debt collectors may not harass, oppress, or abuse any person. They may not:

  • use threats of violence or harm against the person, his property or his reputation.
  • publish a list of consumers who refuse to pay their debts, except to a credit bureau.
  • use obscene or profane language.
  • repeatedly use the telephone to annoy someone.
  • telephone people without identifying themselves

    • Unfair Practices: Debt collectors may not engage in unfair practices such as:

  • collecting any amount greater than your debt, unless allowed by law
  • making you accept collect calls or pay for telegrams
  • depositing a post-dated check prematurely

    • What can you do if you believe a debt collector violated the law? You have the right to sue a collector in a state or federal court within one year from the date you believe the law was violated. If you win, you may recover money for the damages you suffered. Court costs and attorney’s fees may also be recovered.

    False statements: Debt collectors may not use any false statements when collecting a debt; such as:

  • using false, deceptive or misleading representations as to their identity, such as falsely implying they are attorneys or government representatives
  • falsely imply that you have committed a crime or state that you will be arrested if you do not pay your debt
  • misrepresent the amount of your debt
  • misrepresent the involvement of an attorney in collecting a debt
  • indicate that the papers being sent to you are legal forms when they are not; or indicate papers that are being sent to you are not legal forms when they are
  • state that they will seize, garnish, attach, or sell your property or wages unless they or the creditor intends to do so and it is legal to do so
  • give false credit information about you to anyone

    • What is the debt collector required to tell you about the debt?

    Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money, and what action to take if you believe you do not owe the money.

    May a debt collector continue to contact you if you believe you do not owe money?

    A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

    Where can you report a debt collector for an alleged violation of the law?

    Report any problems you have with a debt collector to your state Attorney General’s office and the Federal Trade Commission.

    Federal Trade Commission

    Correspondence Branch

    600 Pennsylvania, NW

    Washington, D.C. 20580

    Can you stop a collector from contacting you?

    You can stop a collector from contacting you. You have the option of writing a letter to the collection agency telling them to cease all communications with you and that you will deal with the creditor directly. This letter should be sent certified mail with a return receipt requested. The collector may send the account to an outside agency.

    Once the agency receives the letter, they may not contact you again except to say there will be no further contact. Another exception is that the agency may notify you if the debt collector or the creditor intends to take some specific action.

    Can a debt collector contact any other person concerning your debt?

    If you have an attorney, the debt collector may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live or work. When doing this, the collector must:

  • identify himself. He must identify his employer only if expressly requested to do so.

  • not reveal the consumer’s indebtedness to anyone other than the debtor or his/her attorney.
  • not use a post card or in any way reveal debt collection activity.
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