Collection agencies employ many different methods to collect debts. Under the Fair Debt Collection Practices Act (FDCPA), some of these methods may be illegal. By law, collection agencies are prohibited from making false threats and from falsely representing themselves. They are also prohibited from making false claims about the debt or their intentions to prosecute you for it. If you find that a collection agency is breaking the law, there are steps you can take to defend yourself.
False Threats
Certain threats are unlawful under the FDCPA. A debt collector may not threaten to refer your account to an attorney, harm your credit rating, repossession or garnishment without actual intention of action on the threat. Keep in mind, though, that they are allowed to inform you of their actual intent to refer the case to an attorney and/or their intent to refer the debt to a credit agency. What they can't do is use a false threat to intimidate you into paying the debt. In the same way, it is also unlawful for a debt collector to threaten to have you arrested if you don't pay the debt.
False Representation
It is unlawful for collection agencies to represent themselves falsely in order to collect a debt. This means that a debt collector cannot falsely claim that he or she is an attorney, and they may not falsely claim that they have filed a lawsuit against you. Debt collectors may not use false names, and they are prohibited from contacting you using stationery that is designed to look like an official court or government document.
False Claims
It is unlawful for collection agencies to make false claims in order to collect information about you. In the past, sometimes debt collectors would call alleged debtors and pretend to be taking a survey, in order to get more information to use against them. Under the FDCPA, this practice is prohibited.
What To Do
If you are find that a collection agency is engaging in unlawful debt collection practices, you have the right to sue them in state or federal court within one year from the date of the violation. If you win, you may recover damages in the amount of any losses you suffered as a result of the violation, plus an additional amount of up to $1,000. You may also be able to recover court costs and attorney fees. Start by reporting the agency's violations to your state attorney general's office. If you have a problem with a collection agency located outside of your state, contact the Federal Trade Commission.
0 comments:
Post a Comment