Know Your Rights With the Collector
When you are approached by debt collectors, they can try any number of tactics to get you to pay off your debt. Some of them are perfectly legal, while others fall into a gray zone or outright persecuted. Here’s what you need to know.
The Fair Debt Collection Practices Act (FDCPA) restricts debt collectors from collecting certain types of debt, including auto loans, credit cards, medical services, mortgages, and a few others. Some states have additional laws.
According to the Bureau of Financial Consumer Protection , the FDCPA “prohibits debt collection companies from using abusive, unfair or deceptive methods to collect debts from you.” This includes third party debt collection agencies, debt buyers, lawyers, and companies that buy debt from other creditors. It usually does not include the original creditor (for example, the hospital to which the medical debt was incurred).
Here are the restrictions the FDCPA places on collectors:
- They can not contact you by phone in “unusual or inconvenient” time or place, including before 8 am or after 21 pm ( Credit.com notes that they can still write to you).
- They won’t be able to contact you at work if you don’t.
- They cannot bother you, including over the phone. This includes repeated calls on the same day.
- They should contact the lawyer who represents you if they know you have hired one. (Therefore, if a collector contacts you, you must provide the name and contact information of your lawyer.)
- They cannot contact you if you have asked them to stop in writing, unless this means that they will not contact you again or inform you that action will be taken against you (such as a lawsuit).
- They cannot tell your friends and family (other than your spouse) about your debt.
- They cannot threaten you.
In addition, they must tell you the name of the creditor, the amount you owe, that you can dispute the debt and that you can request the name and address of the original creditor in accordance with the CFPB. If you dispute a debt, they must prove it.
If a collector is stalking you, you can file a complaint with the CFPB online or by calling 855-411-2372, and the FTC online or by calling 877-382-4357. You can also report them to your state’s attorney general .