Fair Debt Collection Practices Act

All consumers, in one way or another, have to deal with lenders. In some cases, when a borrower fails to respond immediately or when debts are long overdue, lenders pass on the collection of debts to a debt collection agency. However, a debt collector may resort to harassment or unfair tactics to force a borrower to pay. Although you - the borrower has the responsibility to pay, this doesn't mean that you should be treated unjustly.

Borrowers still has the right to privacy and fair treatment. The Fair Debt Collection Practices Act (FDCPA) was passed in 1978 to protect consumers against illegal debt collection practices of lenders and debt collectors. If you think that your right as a borrower has been violated, don't be afraid to take action. Report the debt collector to your State Attorney General's office and file a complaint to the FTC (Federal Trade Commission).

Read full Article: Learning About the Fair Debt Collection Practices Act

What are some of the provisions included in the FDCPA? Let's consider some of them:

The notification provision. Any debt collector who intends to collect payments from you should send an advanced notification. You should be given the complete list of your rights in reference to the FDCPA.



The right to dispute. Borrowers can dispute inaccurate charges or erroneous information within 60 days after notification. If you think there are errors in your billing statement, contact your creditor right away to clarify the issue. Send a dispute letter to the creditor in question via registered post mail. Upon receiving your dispute letter, your creditor must take the necessary investigation and stop all its collection activity until the matter has been cleared.

The right to privacy. A debt collector cannot disclose any information about debt to anyone except the borrower himself. Debt collectors should not contact relatives, friends or neighbors to try to collect repayments. Collectors must not call in your work place especially after you've told them not to. They should not call in your home before 8am or after 9pm. They cannot use postcards to notify you about your debts. If a collector threatens to disclose your debts in a public listing, it is a major violation of the FDCPA.

Read full Article: Learning About the Fair Debt Collection Practices Act

Here are your most Frequently Asked Questions about debt collection and the answers to them. The responses are based on the rights included in the Fair Debt Collection Practices Act (FDCPA).

Is my debt collector allowed to call at any time? No. Debt collectors are only allowed to call between 8am to 9pm. Calling before 8am or after 9pm is prohibited unless with your consent.




Is it okay to leave messages on my answering machine? A collector can leave his name and contact number on your answering machine. However, he should not discuss any information about your debt unless you're available to take the call. If you don't want your debt collector to leave messages when you're not home, you can tell them to stop.

The right to know truth. Debt collectors should not disguise themselves as another entity (ex. a government prosecutor, an FTC representative, etc.) to force a borrower to pay. They should not use false threats (ex. a legal suit has been filed, your property would be repossessed, criminal charges, etc.) to impose fear on the borrower. Always check if what the collector tells you is a correct information.

Read full Article: Debt Collection - Your Frequently Asked Questions Answered

Should you put up with verbal abuse or harassment? Certainly not! Even if you owe a lender, you still deserve to be treated with dignity and respect. Debt collectors should never use abusive languages, foul words, or any form of harassment to force anyone to pay.

Can a debt collector continue to contact you after you told them not to? If you want debt collection activities to stop, you can send a letter to your debt collector and inform them of your wishes. However, keep in mind that stopping an agency's debt collection activities does not exempt you from your responsibility to make repayment. Even if the collection has been stopped, you should take the initiative to submit your payments at the soonest possible time.

What can I do if a lender collects debts I don't owe? Under the FDCPA, consumers have the right to dispute billing charges if they think it's incorrect. As soon as you received your bill, send a dispute letter (via registered mail) to your creditor. They should immediately stop with their collection attempts and begin an investigation about the issue. A creditor has 30 days to set the matters straight. Meanwhile, debt collection should be put to a stop.

Read full Article: Debt Collection - Your Frequently Asked Questions Answered