While debt collection firms serve a useful purpose, they sometimes overstep the bounds of decent business practices, evidenced by the more than 144,000 complaints filed with the Federal Trade Commission in 2010. Laws such as the Ohio Consumer Practices Act and the federal Fair Debt Collection Practices Act exist that, in general, limit debt collection firms from contacting people at work. These laws exist in Ohio and are provided under federal statutes.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act is a federal law that prohibits debt collectors from using unseemly collection practices. This law relates only to consumers; debts related to business expenses are not covered. This law prevents debt collectors from contacting debtors between 9 p.m. and 8 a.m. Additionally, the law prevents debt collectors from contacting debtors at work if notified that collection calls are not permitted.
Ohio Consumer Sales Practices Act
The Ohio Consumer Sales Practices Act, Chapter 1345 of the Ohio Revised Code, is a similar piece of legislation to the Fair Debt Collection Practices Act that protects Ohio consumers from unsafe practices from businesses, including debt collectors. The items covered in the Ohio law, which cover a broad range of sales and business practices, are covered in more extensive detail in the collections-specific federal law.
Verbal Demand to End Collection Calls at Work
According to both laws covering debt collection in Ohio, debt collectors are permitted to contact debtors at work. However, these calls must stop if the debtor requests. Debt collectors that fail to comply with this demand may be punished with federal fines of $1,000 for each individual case of non-compliance or up to $500,000 in the event of a class action lawsuit. Violators of the state law are guilty of a misdemeanor if the rights given to consumers in the Ohio law are violated.
Cease and Desist Letter
Consumers may send debt collectors a cease and desist letter that demands the creditor to cease contacting them. According to personal financial coach Dave Ramsey, this approach should only be used in the most severe cases. However, when the debt collector receives this letter, they must cease all collection efforts. The debt collector is liable for the same penalties under the law if the cease and desist demand is violated.
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