Dealing with piled up debt is already a very stressful task especially when you are going through a financial crisis. In such a situation, handling your creditor is still easier but if your debt goes into collections, it can wreak havoc on your mental health. Debt collectors use aggressive tactics to recover the loan amount from you and sometimes, they even cross the line into harassment. To deal with such situations and to protect consumer rights, the United States Congress came up with the Fair Debt Collection Practices Act (FDCPA) in 1977. The federal laws specifically define how collectors can interact with consumers and how consumers can protect themselves against abusive collection tactics.
If you are a victim of such collectors who are literally using abusive practices and harassing you to recover their loan then it’s important that you learn about the federal laws in detail. From what the FDCPA is to how you can file a complaint in case of harassment, we will discuss it all in detail today.
What Is The FDCPA?
The Fair Debt Collection Practices Act came into being in the year 1977 and it’s enforced by the Consumer Financial Protection Bureau, Federal Trade Commission and state attorneys. The federal laws under this act are specifically for those who collect debt on behalf of others. Moreover, it’s solely for the protection of consumers against deceptive and abusive debt collection practices. It allows the consumers to dispute or verify any debt information. FDCPA applies on all household, personal and family debts. It covers;
- Credit card debt
- Auto loans
- Mortgages
- Personal loans
- Medical bills
*FDCPA doesn’t cover business debt.
How Does The FDCPA Protect You?
1-Limitations On Communication
Debt collectors are prohibited to contact you at unusual times. It’s advised that they contact you after 8 am and before 9 pm. They cannot contact you other than these timings without your prior consent. Moreover, no collector is allowed to contact the consumer during their work hours. If you have informed your collector about your employment and how such calls are prohibited at your workplace then the collector cannot call you. You also have the right to request for no further contact. You just have to ask them in writing to stop contacting you. In such a situation, the collector can only reach out to you if they have to inform you about a specific situation like a lawsuit or some other legal action.
2-Abuse And Harassment Are Strictly Prohibited
Harassment, oppression or abuse is prohibited by the FDCPA and no collector can use such aggressive tactics. Here’s what it means for the collector;
- He cannot threaten the debtor or use any kind of violence to harm the debtor physically.
- Profane, obscene or the use of any such language is not allowed.
- Collectors cannot publicize the names of the debtors who aren’t able to pay off their debts.
- No harm to the reputation or property of the debtor.
- Debt collectors are obliged to disclose their identity and they cannot contact the debtor during unusual hours.
3-No Misleading Or Deceptive Representations Are Allowed
Collectors have to be honest and transparent in their communication with the debtor. They cannot use any misleading or false representations to put pressure on the debtor. For example, a collector cannot make any false claims about being affiliated with the government. They can’t misrepresent the total amount you owe, the character or the legal status of the debt. No collector can threaten the debtor with a legal action like an arrest.
4-Debt Validation
Collectors are supposed to send you a written notice after five days of contacting you. The notice must include;
- Name of the creditor
- The total amount you owe
- The fact that you have the right to dispute the debt within 30 days of the notice.
In case a debtor disputes in writing within 30 days, the collector has to stop any further contact until he verifies the dispute and presents evidence or proof in the mail.
5-Debtors Have The Right To Report Violations And Sue The Collector
If a collector is violating your rights and harassing you then here’s what you can do;
File a complaint with your state’s attorney general or the FTC or the CFPB
Within one year of the violation, you can sue the collector in the state or federal court. In case you win, you can recover your damages, the fees of your attorney and court costs.
Steps You Need To Take When Contacted By A Debt Collector
For starters, when a debt collector contacts you, you shouldn’t panic and ensure that you deal with the matter calmly. Here are some important steps you have to follow;
1-Keep Yourself Calm And Get All The Details
Don’t let your emotions take the best of you. It’s important that when a collector contacts you, you stay calm and handle everything professionally. The very first thing you should do is to ask for a written verification of the debt and get all the details. After that, you have to thoroughly go through the details to ensure that there are no mistakes and errors in the debt.
2-Keep Records Of Your Communication
You must keep records of your communication with your collector. From letters to voicemails to emails, you must document all the conversation to protect your rights in case your collector violates the FDCPA rules.
3-Know Your Rights
Before dealing with the collector, you must learn about all your FDCPA rights. It’s best if you speak with a consumer rights attorney to ensure a smooth and seamless journey.
4-Never Ignore Collection Calls
Even if you think there’s something wrong with the debt or that it’s not your debt then it’s important that you communicate it all immediately. In order to avoid any further complications, you must inform your collector about the situation formally.
What To Do If Your FDCPA Rights Are Violated?
As per a research, around 109,900 complaints were filed with the CFPB in the year 2023 and all of them were related to the violation of the FDCPA by collectors. In simpler words, the violation is quite common and most of the times, collectors do cross the line that poses threat to consumer safety. To ensure that you don’t fall victim to such cases, it’s important that you know how to act timely when your rights are violated.
You have two options;
Filing A Complaint With The CFPB
CFPB is the main federal agency that deals with all the debt collection complaints. You can file your complaint online through form submission, email them or directly contact them via phone. The next step is to provide your information including your name and contact. Then comes the name of the debt collector or agency, the details of the violation and the documentation that serves as evidence. The CFPB will then forward your complaint to the collector and order him to respond within 15 days.
Suing The Collection Agency
If you want to take a more aggressive approach other than filing a complaint then yes, you can sue the collection agency or collector for the violation of your rights. Usually law firms provide free consultations and if you win the case, your collection agency will be responsible for paying any fees associated with the lawsuit. It’s just that even if the court rules in your favour, you’ll still have to deal with the outstanding balance that you owe.
Final Thoughts
If you want to protect yourself against abusive debt collection tactics and manage your debt more responsibly then it’s important that you first learn about your FDCPA rights. It’s a one powerful law specifically made to protect you from harassment and deception. If any collection agency or collector is bothering you and violating the FDCPA laws then it’s important that you take timely action against them in order to protect your mental and financial wellbeing.
FAQs
Q1. Can A Debt Collector Call Me At Work?
Yes, collectors can call you but only if your employer allows. If your company doesn’t allow you to attend such calls during work hours then you are supposed to inform your collector. If he still continues to call you then it’s definitely considered a violation and you can file a complaint against it.
Q2. Can A Debt Collector Threaten To Have Me Arrested?
No, collection agencies and collectors cannot ever threaten an arrest or jail to any of their debtors. If someone does so, it’s considered a clear violation of the FDCPA and it must be dealt with, right on time.
Q3. How Can I Prove That A Collector Is Violating The FDCPA?
In order to protect yourself, it’s important that you keep a record of all the communication between you and your collector. It includes all the emails, the voice mails and even the phone calls. You are also supposed to record the date, time and content of the calls and request communication in writing whenever it’s possible.
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