Rights When Credit Debt Cannot Be Paid

The Fair Debt Collection Practices Act is a federal law clearly outlining what debt collectors can and cannot do as they attempt to collect from you on credit cards and other debts. The intent of the law is to allow debt collection without the use of fear and intimidation. Debtors have several important rights.

Contacts

People pursued by debt collectors have the right to choose how they wish to communicate with the debt collector. The law forbids calls from debt collectors at odd hours, such as before 8 a.m. your local time or after 9 p.m. Debtors also have the right to demand, in writing, that the debt collector not call at all, and place all communication in writing. Also, debt collectors contacting a debtor at work cannot tell the person's employer what the call is about unless the employer asks.

Legal Advice

Everyone has the right to hire an attorney when facing debt problems, and debt collectors must communicate only with the attorney if told to do so in writing by the debtor. This is one reason why hiring an attorney is often helpful. Collection agencies work on commission and love easy targets such as frightened debtors unaware of their rights. The presence of an attorney makes the debt collector's job much tougher and usually guarantees that all the debtor's rights are protected.

Intimidation

Debt collectors cannot threaten an action unless they intend to follow through. That means a debt collector cannot threaten to file a lawsuit unless it intends to do so. The same is true for threatening to garnish wages, repossess autos or harm credit ratings. The Fair Debt Collections Practices Act does not allow debt collectors to issue any false threats in an attempt to collect.

Employers

The law requires that a debt collector filing suit do so in the county that the debtor resides. The debt collector cannot create an unreasonable burden on the debtor by filing suit in a court far away from the person's residence. The debtor also cannot attempt to intimidate the debtor by sending counterfeit or false letters that appear to come from a court or judge.

Verification

Debt collectors, upon request, must verify that they have a legal right to collect a debt. Debt collectors must notify people in writing as they start collection efforts. Usually the debtor makes phone contact first and follows up in writing. The debtor then has 30 days to request in writing that the debt collector verify the debt by sending a copy of the last statement or a copy of the original contact. Federal law prohibits the debt collector from continuing collection efforts until verifying the debt.