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What Are Your Rights Under the Fair Debt Collection Practices Act?
If you are reading this? Chances are you have received a call from a debt collector and wanted to know what rights you have. For starter, there are specific federal and state laws that governs your rights to debt collection.
What is harassment by a debt collector? The answer is not that simple. Debt collection abuse comes in many shapes and forms examples include repetitious phone calls intended to annoy or abuse, use of obscene language, and threat of prison or violence.
The Fair Debt Collection Practices Act, or the FDCPA says that debt collectors can’t harass, oppress, or abuse you, or family members, or anyone else they contact, just because you failed to pay a debt. The FDCPA is a federal law, enacted in 1977 to curb abuses by debt collectors or agencies, carries protections against harassment, threats, unwanted calls to the workplace and disclosing the existence of a debt to friends and neighbors.
Debt collectors or agencies are companies hired on a commission basis, mostly by credit card issuers and banks to collect on past-due accounts. Some debt collectors may also purchase bad credit card accounts and loans from banks and lenders.
The First Contact
The FDCPA requires debt collectors to inform debtors of their rights to dispute the debt. This is commonly referred to by lawyers as the “mini-Miranda” disclosure information. Specifically, the debt collector must tell the debtor: (1) the amount of the debt, (2) the name of the original creditor and current creditor, (3) the fact that unless the consumer disputes the validity of the debt within 30 days, the debt will be considered valid, and (4) the consumer can ask for verification of the debt.
This means that the debt collectors must send this information to you within five days of the first telephone contact. If you did not receive the required mini Miranda, the debt collectors have violated your rights.
Disputing the debts
Consumers contacted by debt collectors can request written verification or proof of the debt within 30 days of the receipt of a collection letter. Until the debt is verified and verification information is sent to the consumers, all collection calls and letters must stop.
Stop the calls
If debt collectors are calling incessantly, calling your workplaces after you have told them to stop, you have the right to request that debt collectors communicate with you only in writing or cease communication altogether. Once debt collectors have been informed, they may only communicate to inform you that collection has been terminated or to let you know about a specific action such as a lawsuit the debt collector intends to take.
If you are represented by an attorney and this information has been conveyed to the debt collectors, the law states that debt collectors must communicate directly with your attorney rather than you, unless your attorney fails to respond to the debt collector within a reasonable time period.
Harassment and abuse
The FDCPA prohibits using or threatening to use violence or other criminal action to harm consumers, their property or reputation. The FDCPA also prohibits obscene or offensive language in communication with the consumers.
Calling the consumer repeatedly, hanging up, calling and not saying anything, anonymous or blocked calling or any other telephone behavior with the intent to annoy, harass, or abuse the consumers, their family members, friends, neighbors or co-workers is prohibited. If a collection agency is calling repeatedly throughout the day, if there are threats, if they are abusive in their language or intimidating, those kinds of things can be shown to be harassment and that is prohibited by the Fair Debt Collections Act.
When harassing phone calls are a problem, consumers can request that all communication and harassment stop by sending a cease and desist letter information debt collectors that they are in violation of the federal law.
Debt collection calls to cell phones
As more and more people are more comfortable with wireless technology, more and more people have their cell phone as their only communication, the Federal Trade Commission reports that it begin receiving more and more consumer complaints about abusive debt collection. In fact, the FCC reports that debt collectors generate more consumer complaints than any other industry.
Recently, in 2015 the Federal Communications Commission has issued new rules and regulations with respect to marketing calls in general, and debt collection calls in particular, to a cell phone. The FCC reiterates its commitment and objectives to protect consumers from unsolicited calls to a cell phone in its enforcement of the Telephone Consumer Protection Act. Under the TCPA, unconsented solicitation or calls to a cell phone is prohibited. Violation of the TCPA may subject violators to statutory penalties from $500 up to $1,500 per call. Further the FTC rules that the consumers may revoke prior consent at any time in any reasonable manner. Thus, if the consumers have provided their cell phone number as a contact number, the consumers may revoke their consent.
Keeping records
You should keep detailed copies of all communication to and from debt collectors as well as sending letters via certified U.S. mail. You should keep a log or journal of the day and time of collection calls, especially if there are multiple debts and multiple debt collectors calling.
By Kenneth M. DucDuong
We only take cases that we truly believe in, allowing us to devote our full effort and time to win your case. If believe you have been harassed by a debt collector, or being collected a debt that you don't owe, call us now at (312) 997-5959 for a free consultation or send us an inquiry@kmdlex.com.
- On September 16, 2016, KMD Law Office has obtained a settlement on a classwide basis against Kovitz Shifrin Nesbit, P.C., a well-known condominium, debt collection law firm in Chicago. The court granted a preliminary approval. ...
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