Guide to Debt Collection Laws

As the current economic conditions continue to cause problems for many consumers, debt collectors have been working overtime to collect past due debts that are owed by millions of people. For many this means endless telephone calls and the possibility of threats from different debt collectors. While this may sound somewhat troubling, the reality is that you do have rights whenever any bill collector contacts you. These rights spell out what they can and can not do according to federal law.

The Fair Debt Collections Practices Act regulates what debt collectors can and can not do when they are collecting any unpaid debt, in addition it spells out what your rights are under the law. It was created by Congress in 1978 to prevent unfair debt collection practices and give consumers a way to dispute as well as find out information about a particular debt that is owed. According to the FDCPA, collection agencies and anyone that works for them are prohibited from engaging in a series of debt collection practices such as:

  • Harassing you or being abusive: This means that collectors can not use abusive language and can not make threats of violence against you. They can not continue to call you repeatedly and make harassing phone calls to you in public.
  • Making false statements: Under the law bill collectors can not make statements that are clearly untrue such as they are working with an attorney’s office, giving false information, claiming to be working with law enforcement or affiliated with one of the credit bureaus.
  • Certain types of communication: When ever a debt collector is attempting to collect any unpaid debt they are forbidden from contacting your employer about the unpaid debt. However, they can contact your attorney, credit reporting bureaus and the place where the debt is originally owed. They can also contact your employer to find out where you are.
  • Unreasonable calling practices: Under the law a debt collector can contact you before the hours of 8:00 am local time and until 9:00 pm local time. They are forbidden from calling you at work and other places that are inappropriate.
  • Unfair or illegal procedures: If you don’t pay the bill on time the debt collector can not add unusually high interest rates or fees, they can not threaten to seize property or assets that they have no right to and they can not make threats of criminal prosecution against you.

Even if you legitimately owe an unpaid debt, collection agencies and agents are prevented from using unfair tactics to collect from you under the Fair Debt Collections Practices Act. This means that you do have rights and if any debt collector is in violation of the law you can seek remedies to prevent further violations.

For more information

For more information on what rights you have under the law please visit the following web sites.

Fair-debt-collection.com/
Privacyrights.org
Credit.about.com