Debt Collection Statutes
Debt Collection Statutes
There are two debt collection statutes you ought to know about. These laws govern the relationship between debt collectors and you and spell out what debt collectors can and cannot do. You should be familiar with theses statutes so that you will know your rights and avoid becoming a victim of an unscrupulous debt collector.
Consumer Debt vs Business Debt
The Fair Debt Collection Practices Act (FDCPA) is the federal law which governs debt collectors. Please note that this statute only applies to those companies collecting consumer debt. If the debt was for a business purpose, then the law does not apply to the collection agency attempting to collect the debt.
Collection Agencies Need To Let You Know
Under this law, collection agencies have to notify you each time a representative speaks to you that the person is attempting to collect a debt and that any information received from you will be used for that purpose. You must also be given the nature and amount of the debt and contact information for the agency as well as the creditor. If you request it within 30 days of first being contacted by the collection firm, you are entitled to a “verification” of the debt and the amount owed. You should not be contacted further until you have had a reasonable opportunity to receive and review the information.
They Can Get In Touch, But Can’t Say Why
If your contact information is incorrect, or you do not respond to notices sent to your home, then the collector may contact your neighbors or other people who know you in an attempt to locate you. However, the agency representative may not say what the nature of wanting to get in touch with you is about nor say anything else which might indicate you are being sought for an unpaid debt.
You Can Choose When And How You’re Contacted
You may not be contacted during certain hours and you can only be contacted three times in any one week which includes telephone calls and notices/letters. You may be contacted at work only once per week. However, you have the right to send a written notice to the company in which you provide your telephone number and the times you are available and tell the company not to contact you at work. The agency must comply.
Many states have laws which enforce the FDCPA and provide various forms of assistance to consumers. You should check with your state government to see what assistance is available to you.
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