About the Fair Debt Collection Practices Act
Established in 1978, the Fair Debt Collection Practices Act altered the manner in which bill collection agencies and their representatives could go after late payments. Rulings under this new law helped alleviate the fear that many people felt once their accounts became delinquent.
While the Fair Debt Collection Practices Act has been in force for decades, many are still unaware of their rights. Few people realize that they have the right to stop receiving calls from bill collectors. Simply send a certified, return receipt letter stating you do not wish to be contacted again. Once a collection agency has this letter, they can be fined or even sued if they continue to contact you.
Video: Defending Against Debt Collectors
Illegal Tactics Performed by Bill Collectors
Bill collectors have used a number of techniques to get payments from people. Most of them are illegal. Sadly, people do not realize it.
Under the Fair Debt Practices Act, bill collectors may only call between the hours of 8:00 a.m. to 9:00 p.m. local time. They cannot call repeatedly or attempt to make a person stay on the phone. They also may not call you at your place of employment if you’ve requested they do not.
Bill collectors cannot call collect or make you pay for telegrams or mailings. They can agree to accept a post-dated check for the payment, but they cannot deposit it until that date arrives. Once you’ve written a letter asking them to stop calling you, they must stop calling. If they don’t, you are entitled to monetary damages of up to $1,000. Bill collectors cannot tell you they are with a law firm or law enforcement agency, nor can they tell you they will have you arrested for not paying your debt. They also cannot use abusive or threatening language.
Your debt is a private matter; therefore, they cannot publish your name with the media or any other third party. Bill collectors cannot contact your friends and family members seeking payment of your debt. They also are not allowed to send you a post card or mailing that is easily recognized by others, including the mail carrier, as a late payment notice. Finally, a bill collector is not allowed to report incorrect information to credit bureaus or go after more money than you owe. If they do this, you can retain a lawyer and sue them.
Video: Pranking a Bill Collector
Scarring Effects of Unscrupulous Collectors
Once a bill collector has used unfair and illegal techniques to demand payments, people’s lives become changed. It may be as simple as fearing answering the door or phone. For others, the collector’s actions take on severely personal note.
Obviously, being contacted by any bill collector is a stressful event. It’s obvious that you don’t have the money to pay your debt, but to have others hounding you for payment is a tremendous strain. This stress can spiral out of control.
Stress has an undeniable effect on your relationships. Current statistics show that five percent of all marriages end because of money problems. Another large percentage claims that money was a secondary factor.
Your health can be affected by stress. Those facing extreme stress are much more likely to suffer from an anxiety attack. These disturbing attacks, while not life threatening, do have symptoms that mimic dangerous health issues like heart attack and stroke. You may close up and not want to leave your house for fear that another attack will hit while you are driving or out in public.
Bill collectors are pushy, so you may begin to feel that bankruptcy is your only answer. They may even have tried telling you that there’s no hope for your situation. They demand money so rigorously, that you rush into a quick solution before taking time to seek financial advice from an expert. If a bill collector calls you at work, your boss may become fed up with the constant interruptions and fire you. While this practice is illegal, some bill collects will try to call you at work anyway.
These reasons prove it is important to know the laws regarding debt collection. If you feel a debt collector is breaking any or all of the laws, don’t be afraid to sue.
Seeking Attorney Help
Before you make an appointment to see an attorney, prepare a file full of information regarding the bill collector’s harassment. If he or she leaves messages on your answering machine, don’t delete them. Keep every possible record.
You do have deadlines to follow. You must sue within one year of the first time they contacted you. Be sure you do not let that date pass.
Start by contacting your state attorney general. Your attorney general has everything you need to get started.
The Fair Debt Collection Practices Act is there to help you. Debt is one of the most stressful situations a person faces. Knowing your rights can help keep stress to a minimum.
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