In a troubled economy with many Americans struggling to find stable jobs and families to care for, many are weighed down by debt. According to a recent survey by Bankrate.com, 25% of Americans carry more credit card debt than they do in their emergency savings. As a result of piling debt, many face the financial and emotional struggles of paying off their money owed. To worsen the situation, individuals are continually harassed by debt collectors demanding payments.
But, the collection harassment doesn’t have to and shouldn’t continue. Enacted in 1978 by Congress, the Fair Debts Collection Protection Act is a United State statute which protects consumers against abusive behavior and harassment by debt collectors. The act protects individuals by ensuring collectors fairly collect payments according to the guidelines. Collectors who violate the act or improperly follow the guidelines can receive a penalty as a result.
Under the FDCPA, collectors cannot:
- Contact a third party person who does not owe the debt
- Pose threats such as potentially damaging your credit score or possessing your valuables
- Repeatedly call you, especially at unreasonable times
- Contact you at places that you don’t want to be contacted at
- Dispose of your debt information to your employer
- Attempt to collect without your validation
Debts covered
Debts covered under the FDCPA include those obtained for personal, family or household reasons. Such debts include credit card debt, mortgage loans, home loans, car loans, personal loans and loans used to purchase medical insurance. Debts not covered under the FDCPA include business, farming and commercial debts as well as alimony, child support, criminal fines, and tort claims.
Individuals protected
Those protected under the FDCPA include consumers who owe money and debt collectors. The debt collector pertains to an individual other than the creditor who collects the debts owed and includes attorneys.
Receiving and disputing debt
If a debt collector contacts you, they must send you a written notice informing you of important debt-related information. This includes how much debt you owe and to whom the debt is owed, as well as tell you that you have thirty days to dispute the claim of debt owed.
If you decide to dispute the debt within that time period, you must send a letter to the collection agency stating that you do not owe money. The collector cannot contact you within that thirty day period. In the instance that the collector repeatedly contacts you and performs collection harassment, you can report the conducts to the state Attorney General’s office and you may also contact the Federal Trade Commission (FTC) if you experience any issues with out-of-state debt collection agency.
Don’t let the collection harassment continue. Know your rights under the FDCPA and fight for the harassment to end.
The only bad part of FDCPA is it only applies to third party collectors and not the creditors themselves. Fortunately most creditors do choose to follow FDCPA.