Debt is a serious and often restrictive part of everyone's lives. And with debt, it can sometimes seem like everyone is out to get you. Some creditors want your money and other creditors want your debt. It is a cycle that many people have difficulty getting out of. Luckily, the Fair Debt Collection Practices Act is out there to protect us. The Act is a statute of the Consumer Credit Protection Act and it exists to eliminate abusive practices relating to debt collection in the finance industry and to provide people with a way to protest or dispute different issues. The Act defines the way in which debt collectors may do business, the rights of consumers and the penalties of violating the Act. Some things you should know about the Act are: 1. Many collection agencies will define their organization as one other than a debt collector to avoid the Act. However, the Act very broadly defines a debt collector as anyone who collects debts or attempts to collects debts in any way. 2. The Act only pertains to third-party debt collectors. However, some states have consumer protection laws which regulate original creditors as well. 3. The Act only pertains to personal and non-commercial transactions, not business transactions. To protect yourself, review the following information regarding what debt collectors may not do when attempting to collect a debt (this behavior is deemed as either abusive or deceptive): - Telephoning you before 8 a.m. or after 9 p.m. - Contacting you after receiving written notice that you wish no further contact or refuse to pay the amount (Note: the collector may contact you to indicate collection efforts are being terminated or for litigation purposes) - Contacting you at work, especially if you have specifically requested that they do not - Misrepresenting themselves to gain access to you - Misrepresenting the debt - Publishing your name or address on a bad debt list - Threatening you with arrest or legal action - Swearing at you or using abusive language - Discussing the nature of your debt with others - Recording false information in a credit report or threatening to do so |
