When you fall far behind on your debts, debt collectors will start calling. The Fair Debt Collections Practices Act limits the way in which debt collectors can interact with debtors, and gives debtors rights when the collections companies step outside of these guidelines. Understanding your rights will help you as you deal with the debt-collection process.
What They Can Do
Debt collectors can contact you by phone, through the mail, via telegram and in person at your home. They are allowed to contact others as well, but only to get contact information for you in an attempt to find you. When they contact you, they must identify themselves, tell you your rights and send you a validation letter outlining the details about your debt within five days of the contact. They can demand any amount up to the amount that you owe plus the collection fees your creditor approved when they contact you.
What They Cannot Do
The Fair Debt Collection Practices Act limits debt collectors from calling or visiting at times that are inconvenient for you, which is typically before 8 a.m. or after 9 p.m., in your time zone. They also cannot discuss your debts with anyone other than you, your spouse or your attorney. If they do contact third parties to get your contact information, they can usually only do so one time. Debt collectors cannot harass you, use foul or offensive language, threaten you or state things that are untrue, such as telling you that you will be sued if the creditor is not planning to do so.
Disputing a Debt
The burden of proof is your creditor's or the debt collector's responsibility. If you feel that you do not owe the money that the debt collector says you do, you need to send them a letter stating this fact. At this point, they must stop contacting you unless they can provide written verification that proves you do, in fact, owe the debt. You must send the dispute letter within 30 days of receiving the validation notice from the debt collector.
Stopping Collection Calls
If you do not want the debt collector to call you, the FDCPA allows you to put a stop to the calls. This does not change the fact that you owe the debt, but it will stop the calls. To stop the calls, send the collector a letter in writing asking them to stop contacting you. Send it via certified mail and ask for a return receipt so you have proof that it was received. Make a copy of the letter. The creditor can contact you to tell you they will be stopping the calls and again if your creditor decides to take a specific action against you. Otherwise, if they continue to call you, they are in violation of the law.
Recourse
If debt collectors violate the law, you have the right to take them to state or federal court to sue for damages, such as lost wages you suffered because of their actions. You might be eligible to receive up to $1,000 even if you have no damages to claim. You can also report the debt collector with your state's attorney general's office and the Federal Trade Commission.
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