Information about Your Legal Rights with Debt

Information about Your Legal Rights

If you owe money for personal loans, credit cards, and even home loans then you are considered to be the debtor. When and if you ever miss payments or errors appear on your account chances are debt collectors or the loan officers with contact you. When these types of problems happen under the Fair Debt Collection Practices Act it insures that debt collectors must follow guide lines to treat you fairly and bans collectors for some collecting methods. Please note that legitimate debts are not excused under the law.
Here are some of the most common asked questions about your rights under the Fair Debt Collection Practices Act.

Debts that are covered:
Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care or for charge accounts.

Debt collector defined:
Debt collectors are people any agencies other than the creditor, whom for fees attempt to collects debts owed to others. The 1986 amendment to the Fair Debt Collection Practices Act, this includes attorneys who collect debts on a regular basis.

Legal debt collector contact methods:
Collectors may contact you in person, by telephone or mail, telegrams, or fax. Debt collectors must not contact you at unreasonable times such as before 8 am or after 9 p.m., unless by your permission. Debt collectors also may not contact you at work if the collector knows that your employer disapproves.

How you can stop a debt collector from contacting you:
You can stop a debt collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency receives the letter, they may not contact you again except to say there will be no further contact. The agency may notify you if the debt collector or the creditor intends to take some specific action.

Debt collectors contacting others:
If you have retained an attorney, debt collector may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors usually are prohibited from contacting such permissible third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

Debt collector and legal notices:
Collector must send you a written notice telling you the amount of money you owe with in 5 days of contacting you, along with the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

Debt collector must stop contacting you:
Collectors may not contact you after 30 days if you send the collection agency a letter declaring that you do not owe the debt. Please note a collector can renew collection activities if you are given proof of the amount owed, like as a copy the bill of the amount owed.

Prohibited types of debt collection practices:
Debt collectors may not harass or oppress or abuse the debtor. Examples debt collectors are not allowed to use:


Threats of violence against a person or harm your property or reputation.
Post a list of consumers who refuse to pay their debts, other than to a credit reporting agency.
Uses of obscene and bad language.
Telephoning over and over to harass someone.
Calling without identifying themselves as to who they are.
Make public advertising of your debt.
Debt collectors may not use false statements when attempting to collect a debt:
Acting like they are attorneys or government representatives if they are not.
Making claims that you have committed a crime if you have in fact not.
Presenting them selves like they work for a credit bureau when in fact they don't.
Misrepresent the amount of your debt.
Misrepresent the involvement of an attorney in collecting a debt.
Implying that papers being sent to you are legal forms when they are not.
Implying that papers being sent to you are not legal forms when they are.
Additionally debt collectors may not imply:

If you do not pay your debt you will be arrested.
They can attach or sell your property or seize, garnish, wages unless the collection agency or creditor intends to do so, and it legal.
Lawsuits will be taken against you when legally they can't be taken, or they do not intend to take.
Debt collectors cannot:

Release false credit information about you to anyone.
Send out official documents from a court or government agency which it is not.
Use untruthful names.
Debt collectors may not engage in unfair practices when they try to collect debts:

Collect amounts greater than your debt unless the law allows it.
Deposit a post-dated check before the date on the check.
Try to make you accept collect calls or pay for telegrams.
Take your property with out it being legal.
Contact you by way of a postcard.
You decide where to apply payments:
When you owe more than one debt the payment you make will be applied to the debt you request. The collector can not apply your payment to any debt you believe you do not owe.

If the debt collector violates the law you may:
Sue a collector in a state or federal court within a year from the date the law was broken. You may recover money for the damages suffered along with court costs and attorneys fees. People also may also file class action suits against a debt collector and recover money for damages up to $500,000, or 1% of the debt collector's net worth but it will be whichever less is.

Alleged violation can be reported to:
Attorney General's office and the Federal Trade Commission is where you can report problems you have had with debt collectors. Most states have their own debt collection laws and the Attorney General's office will help you determine your rights.

We hope this guide has been helpful and informative it's intended as just an out line of some of the key facts, be aware that laws and regulations very from state to state and before you act we want to encourage you to check with your local laws and regulations. As we deem this information to be correct we also disclaim any liability or actions from any event that may arise from this material. For more questions about your rights you may want to contact the FTC at (202) 326-2502



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