Owing money to a creditor can be very stressful. Some consumers struggle to make the minimum payment due each month. Some must decide which bills to pay and which to put off for the time being. If a consumer falls behind on the payments, debt collectors may begin contacting the consumer. In general, the debt collectors must comply with the Federal Fair Debt Collection Practices Act (FDCPA).
Initial Communication and Validation of the Debt
Debt collectors typically make an initial contact with the consumer either through a written document or a phone call. During this conversation, the debt collector should identify himself, explain that he is calling for the purpose of collecting a debt and should try to answer any of the debtor's questions. After the initial communication, the FDCPA requires the debt collector to send a validation of the debts to the consumer, unless he covered the required information during the initial contact. The validation of debts must contain the name of the debt, the name of the creditor owed the debt and instructions to the consumer that she has 30 days to dispute the debt or it becomes valid.
Method of Communication
The FDCPA prohibits debt collectors from contacting the consumer at any time or place known to be inconvenient to the consumer. During the initial communication, a consumer should tell the debt collector about when it is appropriate to contact her. In general, the FDCPA allows debt collectors to contact the consumer between 8 a.m. and 9 p.m.; the time must be the consumer's local time, not the time where the debt collector is located. A consumer can request all communication to be ceased, and the debt collector must comply, but upon doing so, the debt collector can take any further legal actions such as initiating a lawsuit. A request to cease communication must be made in writing.
Threats and Harassment
Debt collectors must not make any false or misleading statements to the consumer; this includes threatening legal action that cannot be legally taken or threatening legal action when there is no intent on initiating a lawsuit. A debt collector can threaten to sue. The communication must be cordial; debt collectors cannot harass or abuse the consumer. This includes using profanity or repeatedly calling the consumer with the intent to harass the consumer.
Lawsuit to Collect a Debt
If the consumer does not pay the debt, after the applicable notice period, the creditor can initiate a lawsuit to collect the debt. The lawsuit is a legal proceeding and both sides may appear before the judge and present evidence. If the creditor wins the lawsuit, it is legal for the court to order the consumer to pay the debt. Wages may be subject to garnishment to repay the debt.
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