Illegal Debt Collection: (FDCPA Summary)

The federal Fair Debt Collection Practices Act (FDCPA) is designed to  eliminate illegal debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.

Illegal debt collection practices occur every day.  Here are the items covered in the Fair Debt Collections Practices Act that you should be aware of when dealing with a debt collector:

• Locating Debtor
• Communication with Debtor
• Harrassment or Abuse
• False or Misleading Representation
• Unfair Practices
• Validation of Debts
• Multiple Debts
• Legal Actions by Debt Collectors
• Furnishing Deceptive Forms
• FDCPA Penalties for Illegal Debt Collection Practices

Illegal Debt Collection Practices When Locating A Debtor

Communication with Debtor

Without your consent or the express permission of a competent court, the debt collector may not contact you at an unusual place or time, that which would be considered to be inconvenient.  Typically, this means a debt collector may only contact you between the hours of 8 a.m. - 9 p.m.  He is also not allowed to contact you at your place of employment unless he has your or a court's permission.

If you notify the creditor in writing that you are not going to pay the debt or you do not want him to contact you any longer, then the debt collector may only contact you to let you know the debt is being written off, or the creditor or collection agency is either prepared to take or is taking legal action against you.

Illegal Debt Collection Practice Includes Harrassment and/or Abuse

A debt collector may not attempt to collect a debt from you by threats of violence, use of obscene or profane language, by publishing a list with your name on it as an alleged "deadbeat" unless it is reported to a credit reporting agency or to someone meeting requirements of 603(f) or 604(3) of this Act, advertising your debt to coerce payment, calling you repeatedly with the intent to annoy you, or by calling you without disclosing the caller's identity.

False or Misleading Representation Is Illegal

A debt collector may not misrepresent himself or use deceptive means to collect a debt.  In general, he may not represent himself as being associated with the federal, state, or local government (including the use of a badge or uniform), as being an attorney or stating that information communicated is from an attorney, through any threat of imprisonment, garnishment, or sale of property unless he or the creditor intend to take such action, by disgracing you through false statements, or as being an employee of a credit reporting agency.

A debt collector is also not allowed to misrepresent the dollar amount or legal status of any debt you owe.

Ex.  A debt collector my not demand full payment of debt when he knows the agency or creditor would accept a partial payment.  To do so, the collector would be clearly violating Section 807 (10) of the FDCPA which, "prohibits the use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer."

Unfair Practices Are Not Allowed

A debt collector may not use unfair practices to collect or attempt to collect your debt.  Violation of this law includes the following:

• collecting any amount not expressly authorized by the agreement or by law
• acceptance of a post-dated check by more than 5 days without written notification of the debt collector's intent to deposit the check within 3, but not more than 10 days of such deposit.
• solicitation of a post-dated check to avoid the threat of criminal prosecution
• depositing or threatening to deposit a post-dated check prior to the date on the check or other instrument
• causing undue communication charges (telephone fees) through misrepresentation
• taking or threatening to take legal action that is not available by law.
• communicating debt information to you via a post card.

Validation of Debts

A debt collector is required to contact you in writing, within 5 days of the initial communication of the debt, notice of the debt amount, the creditor's name, and a statement giving you 30 days to dispute the debt and/or receive information about the creditor upon written request by you.

If you dispute the debt or request creditor information within the  30-day period, then the collection agency must stop attempting to collect the debt until the debt is verified or the creditor's name and address is mailed to you.

If you fail to dispute a claim, you are not automatically deemed liable for the debt.

Multiple Debts 

If you owe multiple debts, but only make a single payment to the collection agency, then the agency cannot apply that payment to any disputed amounts.  The agency must apply the payment per your directions.

Legal Actions by Debt Collectors

Unless a debt collector is filing suit on an interest in real property, he can only bring legal action against you in the jurisdiction where you signed the contract or where you lived when the action began.  If, however, the collector is trying to secure an interest in real property (property used as collateral), then he may bring suit in the district where the real property is located.

Furnishing Deceptive Forms

A debt collector cannot create a form indicating other parties are involved in the debt collection process when indeed, they are not. 

Penalties Will Be Accessed For Illegal Debt Collections

You may seek damages from violators. If a debt collector fails to comply with the Fair Debt Collection Practices Act, you can sue him in state or federal court.