Being in the crosshairs of a debt collection agency is unnerving at the best of times, but when you don't know kind of behavior is out of bounds for a collector, the process can be even more intimidating. Despite a reputation for strong-arming consumers, there are very strict regulations in place governing how far agencies can go when trying to collect a debt. Arming yourself with the facts will help you stay in control.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) lays down the law for collection agencies and specifically details what they can and can't do when dealing with consumers. The FDCPA is enforced by the Federal Trade Commission which also provides resources to consumers to help them deal with debt collection.
Making Contact
Debt collectors are not allowed to call you before 8 a.m. or after 9 p.m. Collection agencies can call you at work, but they have to stop if you tell them that you are not allowed to get calls there. When talking to you, they cannot use abusive or obscene language, threaten to put you in jail, threaten violence or threaten to take you to court for your debt unless they are both legally entitled to and intend to pursue legal action. Further, they cannot misrepresent themselves on the call by pretending to be from another company to collect information about you or misrepresent the amount of your debt. They also cannot suggest that they will take any action they do not have the authority to take, such as seizing your property.
Wage Garnishment
A debt collector can garnish your wages, but only after it has received a judgment against you. Before that happens, you must be notified of the lawsuit via a legal summons. If you fail to fight the case in court, the collector may automatically win the judgment. It cannot garnish most federal benefits, though the government can garnish these if you are behind on taxes, child support, alimony or student loans.
Tracking You Down
A collection agency is allowed to contact neighbors, friends, co-workers and family members about you, but it cannot discuss your debt with them. It can only ask for address, phone number and place of employment.
Getting Help
If a debt collector has crossed the line, you have options. If you want the agency to stop calling you, send it a certified letter telling it to cease contact. While this won't stop your debt, the agency will be legally obligated to stop calling you. You can also contact the FTC and file a complaint about the company. Complaint forms can be found on the FTC website. An attorney may also be able to help you reign in an overly aggressive debt collection agency. Contact your state bar association for help finding an appropriate lawyer.
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