Think Before Answering Questions From a Bill Collector
You might have thought "that's interesting", but if you find yourself struggling with debt, suddenly this acronym could become very meaningful to you.
The FDCPA is a United States statute that outlines the way debt collectors and collection agencies can go about their work. It also states that consumers have the right to question and get written proof of the original debt. Most importantly it doles out punishment if the act is violated.
The collection agency must not fudge the figures and request that you pay more than is owed. They cannot enrich the amount by adding on charges such as fees, interest or late charges that weren't included in your initial contract.
Some of the tactics you have heard others complain about and may have experienced yourself, such as phone calls at all hours of the day and night, are not allowed.
If you receive calls before eight o'clock in the morning and nine o'clock in the evening, or if they tie up your line with call after call, they are in violation of the act. They must follow common courtesy.
Sometimes an over worked and frustrated caller will resort to abusive language. If you choose to hang up the telephone in a case such as this, they may call back and ramp up the abuse by using obscene or profane language. Again, this is a violation of the FDCPA.
Any threat of violence is definitely against the statute. This isn't the wild west in the days before law and order, nor is it the 1920s or 1930s when loans were collected at the point of a gun.
Collectors may scare you with the possibility they will garnish your wages, confiscate your possessions, or sue you. They cannot threaten unless they really intend to take action, and in most cases they don't have the power to do so.
If they call you at your place of work and you ask them not to, they are obligated to obey your wishes. Similarly they cannot call a third party more than once in order to get information about you.
Collection agencies cannot embarrass you by advertising your debt unless to give them permission to do so. But they can contact your lawyer, credit reporting agencies, your creditor or their lawyer, your spouse, or if you are under-age, your parents.
When confronted by a call from someone who says they're from a collection agency, don't succumb to their questions. Even if you recognize that the debt might be yours, make it clear that you require validation, in writing, within the prescribed five days.
Then, when they ask you for your correct mailing address, you can confidently answer that one question, knowing that you are negotiating from a position of strength, backed up by the powers of the FDCPA.
Nick Messe is the founder and president of Lead Frog LLC. Learn more about the Fair Debt Collection Practices Act - FDCPA - and how it protects you from debt harassment. Visit FairDebtHelpers.com for a free evaluation of your case by an experienced fair debt attorney.
The FDCPA is a United States statute that outlines the way debt collectors and collection agencies can go about their work. It also states that consumers have the right to question and get written proof of the original debt. Most importantly it doles out punishment if the act is violated.
The collection agency must not fudge the figures and request that you pay more than is owed. They cannot enrich the amount by adding on charges such as fees, interest or late charges that weren't included in your initial contract.
Some of the tactics you have heard others complain about and may have experienced yourself, such as phone calls at all hours of the day and night, are not allowed.
If you receive calls before eight o'clock in the morning and nine o'clock in the evening, or if they tie up your line with call after call, they are in violation of the act. They must follow common courtesy.
Sometimes an over worked and frustrated caller will resort to abusive language. If you choose to hang up the telephone in a case such as this, they may call back and ramp up the abuse by using obscene or profane language. Again, this is a violation of the FDCPA.
Any threat of violence is definitely against the statute. This isn't the wild west in the days before law and order, nor is it the 1920s or 1930s when loans were collected at the point of a gun.
Collectors may scare you with the possibility they will garnish your wages, confiscate your possessions, or sue you. They cannot threaten unless they really intend to take action, and in most cases they don't have the power to do so.
If they call you at your place of work and you ask them not to, they are obligated to obey your wishes. Similarly they cannot call a third party more than once in order to get information about you.
Collection agencies cannot embarrass you by advertising your debt unless to give them permission to do so. But they can contact your lawyer, credit reporting agencies, your creditor or their lawyer, your spouse, or if you are under-age, your parents.
When confronted by a call from someone who says they're from a collection agency, don't succumb to their questions. Even if you recognize that the debt might be yours, make it clear that you require validation, in writing, within the prescribed five days.
Then, when they ask you for your correct mailing address, you can confidently answer that one question, knowing that you are negotiating from a position of strength, backed up by the powers of the FDCPA.
Nick Messe is the founder and president of Lead Frog LLC. Learn more about the Fair Debt Collection Practices Act - FDCPA - and how it protects you from debt harassment. Visit FairDebtHelpers.com for a free evaluation of your case by an experienced fair debt attorney.
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