What are Your Rights?
Many Americans are behind on their bills due to high unforeseen medical bills extended unemployment, or mounting credit card debt. Being contacted by a debt collector can be an upsetting and stressful experience. It is important to know your rights to protect yourself from abusive, deceptive, and unfair debt collection practices.
The Fair Debt Collection Practices Act (FDCPA) protects consumers by outlawing some collection practices and regulating others. Here are some of your rights under the Act:
- The debt collector cannot discuss your debt with third parties. The debt collector may contact third parties only to find your address, home phone number, and where you work. They are not permitted to discuss your debt with these third parties. Also, debt collectors can generally only contact a third party once. A debt collector, may however, discuss your debt with you, your spouse, and your attorney.
- Debt collectors may not harass you or third parties. Collectors may not use threats of violence or harm, use the phone repeatedly to annoy someone, use obscene language, call during unusual hours like before 8 a.m. or after 9 p.m., or publish a list of names of people who refuse to pay their debts (but they can submit your name to credit reporting agencies).
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Debt collectors cannot lie to you when trying to collect a debt.For example, they cannot falsely claim:they are with a government agencythat you have committed a crimean amount you owe in error
- The collector must apply any payment you make to the debt you select. If a collector is trying to collect for more than one debt from you and you make a payment, the collector must apply payment to the debt you select and cannot apply it to any other debts.
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Debt collectors are prohibited from saying the following:you will be arrested if you don’t pay your debtthey’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do solegal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.
- You can make the collector stop contacting you. Collection agencies are required to substantiate the debt you owe within 5 days and outline what to do if you disagree. If you think you do not owe the funds the collection agency must stop collecting the debt if you make this claim in writing within 30 days (unless they have other proof). Regardless, if you tell the collection agency in writing to stop contacting you they must do so. The only allowable future contact is to confirm your request or to tell you what action they are taking.
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Report any problems with debt collectors to your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov).
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This is only a brief summary of your rights under the FDCPA. Many states also have their own debt collection laws that differ from the federal FDCPA. The state Attorney General’s office can help you determine your rights under state law.