When the economy sours, debt collectors turn up the volume with harassing phone calls---often at work, where the embarrassment factor is greatest. However, the Fair Debt Collection Practices Act (FDCPA) forbids those calls from continuing, once a debtor asks them to stop. A collector may also not threaten potential legal actions such as wage garnishments, nor pass itself off as an attorney or government representative.
Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act is the primary law governing debt collectors' behavior, according to the Federal Trade Commission (FTC), the consumer agency that is responsible for enforcing its protections. A collector may not call a debtor at inconvenient hours or places, including at work, unless the debtor agrees to it. However, the law also requires the debtor to notify collectors of their violation, either orally or in writing.
Ending Further Harassment
For best results, the FTC recommends sending a certified letter to the debt collector. According to the law, the letter must go out within 30 days, according to the FTC. Once the collection agency receives the letter, it must stop all further contact. The law only permits two exceptions---to inform the debtor that further contact will cease, or to outline specific actions being contemplated by the collector, such as lawsuits.
Debt Collector Tactics
The Fair Debt Collection Practices Act also outlines what a debt collector can do when dunning a debtor. A collector may not contact third parties, except to obtain a debtor's home address, phone number and place of employment, according to the FTC. The law also bars a creditor from passing itself off as an attorney or representative of government agencies. Collectors may also not claim to be pursuing legal actions, such as seizing property or garnishing wages unless those processes are already underway.
Other Restrictions
A collector may call to verify employment, but cannot ask about income, nor try to elicit other personal information. A debtor is not obliged to discuss bank account details or whether she is a homeowners or a renter. The Fair Debt Collection Practices Act also prohibits a collector from engaging in unfair practices, according to the FTC. Examples include requesting post-dated checks for payment, or trying to collect additional fees and interest on top of the original debt.
Remedies And Limitations
The Fair Debt Collection Practices Act's provisions only apply to collectors working for collection agencies, not the original creditors themselves. As of 2010, New York is the only state that also prohibits original creditors from calling. If harassment continues, the debtor can file a complaint with his state consumer agency, or the FTC. A debtor can sue the collection agency---and the creditor that hired them---for up to $1,000 in his local small claims court.
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