Debt notifications come in many forms. Sometimes it's a statement; other times it's a debt collector's "validation notice." Either way, the notification must include the name of the creditor, how much you owe, and instructions on what to do if you don't owe the debt. And while lenders and collectors may also contact you via telephone and email, they must abide by the rules set forth by the Fair Debt Collection Practices Act.
The Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (the FDCPA) is federal law that's enforced by the Federal Trade Commission. It's designed to protect consumers from unlawful, unfair or "deceptive" debt collection tactics, according to the FTC. The act covers personal -- not business -- debts, and it applies to any company that regularly collects debts, including lawyers and collection agencies. The act states that the collector must provide the borrower with written notification that confirms the debt within five days of first contact. This notification is called the "validation notice."
Telephone Contact
Although collectors almost always send a written notification, the first contact usually comes via telephone. Be advised a collector may not call you before 8:00 a.m. or after 9:00 p.m. (in your time zone). It may initially contact you at work, but if you ask them not to, they must abide by that rule immediately. You may write the collector to request that it stop contacting you; however, it won't make the debt go away. If the collector is able to validate the debt, it will begin contacting you again.
Third Party Notification
Unless you give a collector permission to speak or write to a third party about your debt -- such as a bankruptcy attorney -- the collector may not notify anyone else about the debt. This includes family members and employers. However, the collector may ask these people for your contact information. According to the FTC, collectors are almost always "prohibited from contacting third parties more than once." If you are using an attorney to resolve the debt, the collector must provide notification of the debt to the attorney instead of you.
Continued Notification When You Don't Owe the Debt
If a collector or lender is contacting you about a debt that isn't yours, you must send a letter that clearly states that you don't believe that you owe the debt (instructions for disputing the debt will be on the validation notice). Be sure to send the letter via certified mail. Once the collector receives the letter, it must stop contacting you until it can resolve the dispute. Never ignore collection letters or calls, especially if there is a forthcoming legal proceeding; this may result in your bank account or wages being garnished. Your best bet is to speak with the collector honestly. If the debt is yours, you may be able to arrange a repayment plan that suits your budget and the collector.
0 comments:
Post a Comment