Know Your Rights
Fair Debt Collection
If you use credit cards, owe money on a personal loan, or are paying a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you will be contacted by a "debt collector."
You should know that in either situation, the Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.
Frequented Asked Questions About The Fair Debt Collection Practices Act.
What debts are covered?
Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.
How may a debt collector contact you?
A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.
What types of debt collection practices are prohibited?
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, debt collectors may not:
* use threats of violence or harm;
* publish a list of consumers who refuse to pay their debts (except to a credit bureau);
* use obscene or profane language; or repeatedly use the telephone to annoy someone.
False statements. Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:
* falsely imply that they are attorneys or government representatives;
* falsely imply that you have committed a crime;
* falsely represent that they operate or work for a credit bureau;
* misrepresent the amount of your debt;
* indicate that papers being sent to you are legal forms when they are not; or
* indicate that papers being sent to you are not legal forms when they are.
Debt collectors also may not state that:
- you will be arrested if you do not pay your debt;
- they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
- actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.
