|
June 2006 |
|||||||
|
Are Your Debt Collectors Playing Fair? Federal Law Says They Have To 
When we borrow money from credit card companies or get a car loan from a bank, we enter into a legal relationship. And just as you are legally bound to pay back the debt, they and their debt collectors are legally bound to behave in a business-like manner. In other words, if you've fallen behind in your bills, the Fair Debt Collection Practices Act (FDCPA) requires that debt collectors still treat you professionally. You can read the law in detail at the Federal Trade Commission, www.ftc.gov, but Debt Matters has boiled it down to a few easy-to-remember ideas. They have to abide by your wishes. You have a surprising amount of power in your dealings with debt collectors. The FDCPA requires that if you ask them to stop calling in a written letter, they have to stop calling. (Writing such a letter doesn't get rid of the debt, however.) If you have a lawyer, and you ask them to go through your lawyer, they are required to do so. They have to be honest. Debt collectors are not allowed to tell you they are somebody they are not or that they possess power that they don't. They can't represent themselves as attorneys. They can't threaten legal action that can't actually be taken. They can't imply the creditor is going to take legal action unless they actually intend to do it. In short, if they say or do something that's purposefully deceptive, they have broken the law. They have to be nice. Okay, debt collectors don't have to be charming. But they can't use obscene, abusive, or threatening language. This includes obvious physical threats, but also can include less-obvious threats to your reputation or legal threats. They can't harass you by calling too often or before 8am and after 9pm. They can't knowingly call and bother or embarrass you at work. (If you ask them not to call you there, they have to abide by your wishes.) If they talk to a third party, they can only do so to help locate you. They can't tell your relatives you're in debt to a creditor. What you can do. Many debt collectors have crossed the legal line when doing their work — and they've paid for it in the courts. If you suspect someone is violating the FDCPA in dealing with you, contact your state attorney general. If the debt collector is from a different state, contact the Federal Trade Commission. |
|
|
|
|
|||
