The Fair Debt Collection Practices Act (FDCPA) is a federal law that is enacted to protect consumers from harassing debt collectors. Below we will discuss who this law applies to and how it stops debt collectors from using abusive and misleading tactics.
Who is Covered under the Fair Debt Collection Practices Act?
The law that covers the Fair Debt Collection Practices Act is found in Section 1692 of Title 15 of the United States Code. The FDCPA was enacted to stop debt collectors from harassing consumers. This law applies to debt collectors and debt collection agencies who try to collect consumer debts. This law also covers lawyers and law firms that try to collect debts against the consumer.
Generally, debt collectors buy debts from the original creditor. Debts usually consist of personal loans, medical debts, and credit card bills. When consumers fall behind on their debts, debt collectors will sue them. Many people who can’t afford to pay back their debts may consider filing bankruptcy as an option.
Even though the consumer may owe the debt, debt collection agencies and law firms still must follow certain rules when trying to collect these debts. If the debt collection agency harasses a debtor, the debtor can sue the debt collection agency.
What does it mean to have to follow rules under the FDCPA?
The FDCPA does not stop a person from owing a debt. However, it limits how debt collectors are allowed to collect a debt. This means that debt collectors must not partake in certain actions when trying to collect a debt. For example, debt collectors have to refrain from calling a consumer during certain times of the day.
What Rules Do Debt Collectors Have to Follow under the FDCPA?
Whenever a debt collector is trying to collect against a consumer, there is certain information that the debt collector must provide. For example, they must state where they are calling from, that they are collecting a debt, and provide all of their contact information. Generally, the debt collector should also tell you the name of the original creditor.
Moreover, debt collectors must let consumers know that they have the right to dispute a debt within 30 days. To dispute the debt, the consumer should send the debt collector a written request. This is also called a debt verification letter.
To send a creditor a debt verification letter, the name and address of the original creditor must be provided. Moreover, debt collection efforts must cease until the debt is verified.
Below we will discuss what is not allowed under the FDCPA.
What Types of Collection Efforts Does the FDCPA Prohibit?
As mentioned above, there are certain things that Debt Collection agencies must refrain from doing to be able to collect against a consumer. If a debt collector violates these rules, the consumer can be awarded money and they could be sanctioned by the court. These are the types of things which are not allowed by a debt collector:
Using Profane Language:
Under the FDCPA, a debt collector has the right to try and collect the debt. However, the debt collector can’t use profane language when trying to collect the outstanding debt. This means the debt collector can’t use profane language or threaten to tarnish your reputation. Moreover, they can’t threaten that if they sue you, then you will lose everything that you own.
Harassment:
The FDCPA stops any debt collection agency that is trying to annoy or harass someone. This means they may not constantly keel calling. The law is ambiguous when it comes to how many times they can call. However, if they are calling just to harass you, then it could be deemed a violation.
What Times of the Day Can a Debt Collector Can Call?
Under the FDCPA, debt collection agencies can only call during certain hours of the day. These hours are between 8a.m. and 9.pm. local time. If they call continuously outside of these hours, then you could have a claim against them. The best thing to do is take pictures of when they called. It is important to note that this doesn’t only apply to phone calls. Under the FDCPA, if they are sending emails outside of these hours, then this could be a violation as well.
Can a Debt Collector Contact my Friends and Family?
Many people are under a misguided impression that debt collectors can’t call friends and family. This is false. Debt collectors have the right to contact friends and family. However, they must refrain from saying certain things. For example, they must identify why they are calling and are allowed to confirm the address where the person they are trying to collect against lives. However, they can’t let the friend or family know that they are trying to collect a debt and moreover, they can’t give out any personal information about the account.
What happens if the Statue of limitations has run on the outstanding debt?
The FDCPA prohibits debt collectors from using false or misleading information to try and collect a debt. This means that a debt collector can’t say they are an attorney when they aren’t. Moreover, a debt collector can’t make statements to try and get someone to pay if they have no intention of following through on their threat or statement. For example, if the statue of limitations has run on the debt, they can’t threaten to take the person to court. The FDCPA prevents a debt collector from threatening any lawsuit when they know that they can’t collect the debt by taking that person to court.
What Can I do if a Creditor has Violated the FDCPA?
When a creditor violates the FDCPA, a case is filed in federal court. Moreover, state laws are also in place that allow cases to be filed there as well. Our law firm can file a lawsuit against the debt collection agency. We have helped many client’s sue debt collectors and be awarded damages.
Lawsuits against debt collectors must be filed within one year of the violation. If you have any debt collection letters, you should have us review them. Many debt collection letters have violations that consumer are unaware of. Federal law allows consumer to be able to collect the actual amount the person lost plus additional damages of up to $1,000 per violation, and attorney’s fees.
To ensure that you have a good case, there are certain steps that you can take to prepare to deal with debt collectors in court. Here are some steps:
- Keep track of all phone calls with the debt collector. To do this, taking screen shots can be helpful.
- Save the envelope of any debt collection letters or take a photo of it.
- Save the debt collection letters. To have a stronger case, you should save the front and back and every page of each letter.
- If you want to dispute or verify the debt, make sure to send it to the debt collector with return receipt. This will be helpful to show proof that you did send them a letter.
Karra L. Kingston Esq. helps consumers against unfair debt collection practices. We take these cases for free. This means that you will never owe us anything for a Fair Debt Collection Practices Act violation. Generally, the consumer will pay our fees. To review if you have a case, send us your debt collection letters and we can tell you if you have a case. You can send us an email with your debt collection letter at Karra@klkbankruptcylawyer.com please also include your name and phone number. We will review your letters for free to see if you have a case. Since this is federal law, you don’t have to live in New York or New Jersey. We can bring cases in other states against these debt collection agencies as well.
The debit collector doesn’t give a name they just text me they have never called they threatened law suit with attorney I only see their phone number they text me all hours of the day
This could be a violation of spam. Generally, they have to give a name. If you can get one, then we may be able to sue under the FDCPA. Please feel free to contact one of our lawyers to see if we can help you start a lawsuit against this debt collector.