The Facts About Fair Debt Collection Practices
With more and more consumers facing critical debt issues from high mortgage payments that they cannot always make on time to insane credit card bills each month, it is no wonder that debt collectors are working overtime to get borrowers to pay what they owe. But there are some rules as to what they can and cannot do when attempting to collect on a debt.
The Fair Debt Collection Practices Act took effect to help stop abusive practices engaged by some debt collectors. According to this act:
“A debt collector may contact a person other than the debtor only to discover or verify the debtor’s location. In doing so, the collector must identify himself, but only has to identify his employer if requested, and must not reveal the consumer’s indebtedness to anyone other than the debtor.”
“A post card may not be used to reveal the collection agency. The collector may not communicate with the debtor more than once unless absolutely necessary, and if the collector learns that an attorney is representing the debtor, any further contact concerning the debt must be with that attorney.”
“A collector may not contact the debtor at his or her place of employment if it is known that the employer prohibits this.”
“The law also prohibits harassing and abusive behavior, including, but not limited to, the use of threats of violence to the debtor’s person, reputation, or property. The law does not allow annoying, anonymous, or repetitive telephone calls, or charging the debtor for collect calls or telegram fees.”
“Within five days after contacting a debtor about paying a debt, the collector must send written notice that includes the amount of the debt, name of the creditor, a statement that the debt will be assumed to be valid unless disputed within 30 days, and that if disputed, the collector will verify it and send a copy of the verification or judgement against the debtor.”
Consumers should understand this act only applies to collections of debt incurred for personal, family, or household purposes. It also is only applicable to those individuals who work for businesses that collect debts owed to others. It does not include those who work for banks and other businesses that collect on their own accounts.