In honor of National Consumer Protection Week, at the law firm of Kingcade & Garcia we want to take a moment and educate you on your rights as a consumer. There are few things more frustrating than being harassed by a debt collector for a bill you cannot pay. There are federal laws that protect consumers from inappropriate and deceptive debt collection practices.
The Fair Debt Collection Practices Act defines consumers’ rights when it comes to dealing with debt collection agencies and regulates what debt collectors can and cannot do legally when collecting on a debt. A collection agency has the right to call you at your home or workplace within reasonable hours, unless you specifically ask them not to do so. Within five days of calling you, a collection agency is required to send you a written confirmation stating the amount you owe and the name of the creditor.
If you do not believe you owe the debt, you can send the agency a letter explaining this within 30 days of receiving the notice, according to the Federal Trade Commission. With the letter, include any proof that the debt is not yours. The collection agency must cease contacting you at this time, unless it can send you written verification that the debt is in fact yours.
If the debt is yours and you want the agency to stop contacting you, you can send a letter requesting this. After your letter has been received, there are two instances in which you may still be contacted by the debt collector:
• The collector may contact you to let you know there will be no further contact;
• The collector may contact you to let you know that a specific action will be taken (i.e. – filing a lawsuit against you). If this is the case, it is important that you respond to any court summons you receive, otherwise you forfeit your right to fight a wage garnishment and the debt collection agency can take money directly out of your bank account.
Important Tip: Make sure you keep copies of communication you have had with the debt collection agency. This will be of great importance if legal action occurs.
Debt collectors can also contact third parties (typically only one time) to find out general information about you (i.e. – your address, phone number or place of employment.)
What Debt Collectors Cannot Do:
• Contact you at unreasonable hours. Debt collectors cannot contact you during unreasonable hours, before 8 a.m. or after 9 p.m. They also must quit calling you at your place of employment if you notify them in writing or over the phone that you cannot accept calls there.
• NO harassment. A debt collector cannot harass you about a debt you owe. Harassment can include threats of violence, obscene language, multiple phone calls or publishing your name publicly because you owe a debt.
• NO unfair collection practices. A debt collector may not engage in unfair collection practices (i.e. – trying to collect more than you owe, depositing a post-dated check early or taking your property when they are not legally allowed to do so).
• NO double dipping. If a collection agency has more than one of your debts, it cannot apply payments you make to one debt to another. It also cannot apply payments to a debt you say you do not owe.
• NO lying. A debt collector cannot lie to you in an attempt to collect on a debt. These lies can include falsely representing him or herself as an attorney, government official or someone else; accusing you of committing a crime; stating you owe more than you do. Debt collectors cannot threaten legal action or wage garnishment will occur if this is not the case. They also cannot give false credit information or lie about the agency they work for.
If you have an attorney representing you, the collection agency has to talk to your attorney, not you. As a general rule, a debt collector cannot discuss your debt with anyone besides you, your spouse and your attorney.
If you have questions regarding the Fair Debt Collection Practices Act, click here to watch this short video.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Related Resources:
http://www.nerdwallet.com/blog/credit-card-basics/debt-collectors-consumer-rights/
