Dealing with creditors and debt collectors is one of the worst parts of dealing with debt. Even the thought of continuous debt collection calls can keep a person up at night. Debt collectors are oftentimes relentless when making these calls and can cross the line from a legal standpoint. It is important to remember, that as a consumer you have rights when it comes to debt collection.
The Fair Debt Collection Practices Act (FDCPA) was created to protect consumers from harassment and threatening behavior from third-party creditors.
The FDCPA protects consumers from the following creditor behavior:
- Contacting your employer regarding your debt or another party, except for contacting them to get information on your location;
- Contacting you at unreasonable hours, either very early in the morning or late at night;
- Calling you at work after being told to no longer contact you at your place of employment;
- Calling excessively or repeatedly;
- Using threatening or abusive language or behavior;
- Threatening a lawsuit when they have no intent to pursue a lawsuit;
- Threatening to publish or share your information because of your failure to pay a debt;
- Any other abusive, obscene or threatening behavior.
The important first step to take when faced with a debt is to ask for confirmation on the amount owed. In fact, the debt collector is required to notify you that you have the right to request this validation within 30 days after receiving the first written communication from the debt collector. Requesting validation of the debt can also be done over the phone. By requesting validation of the debt, the consumer is making the debt collector verify that the debt is actually owed.
If the amount is accurate and you still are not able to pay on the debt, it is always recommended that you speak directly with the creditor and explain the situation. Tell them that you are unable to pay. Never provide your bank account, routing number or debit card information to the creditor.
The FDCPA also dictates other requirements as to when the collector can call, which is only between the hours of 8 a.m. and 9 p.m. The debt collector is also restricted from using any language or tactics that may be deemed harassing, threatening or abusive. If the debt collector tries to contact other third parties, such as friends or family members of the individual, they may not disclose information on why they are trying to reach the debtor but can only contact them to get the correct contact information for them.
The ideal situation would be for the creditor to work with you on an affordable repayment plan option. Many times, a letter from the debtor is not enough to get the collector to stop communication, and at this point, an attorney may be needed to write a letter. If a third-party debt collector persists in this behavior, you may be entitled to file a legal claim for an FDCPA violation and sue them for damages, which can include attorney’s fees plus an additional $1,000.
If you have questions on this topic or are in financial crisis and considering filing for 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 McMaken 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 McMaken website at www.miamibankruptcy.com.