Debt Collection Rules
There are very specific rules
regulating what debt collection agencies can and cannot
do when attempting to collect unpaid debts. Most of these
regulations are set forth by states under various consumer
protection laws as well as the Federal Fair Debt Collection
Practices Act.
- Falsely accuse the debtor of
fraud or other crimes
- Use or threaten to use
violence or other criminal acts to collect the debt
- Threaten arrest of the debtor,
or threaten to repossess or seize property of the debtor
without proper court proceedings
- Make collect telephone calls
to the debtor without disclosing the true name of the caller
before the charges are accepted
- Harass the debtor or the
debtor's family with frequent communication, by calling
anonymously, or making frequent or continuous calls
- Use profane or obscene
language
- Mail any documents to the
debtor that falsely appear to be from a court or other
official agency
- Misrepresent the amount of the
debt or falsely claim that legal action has been taken.
Debt collector limitations
The federal Fair Debt
Collection Practices Act also governs debt collection
practices, specifically regulating those collectors who work for
professional debt collection agencies and attorneys hired to
collect debts. In addition to state law the federal act also
provides that collectors cannot:
- Communicate with a debtor
before 8 a.m. or after 9 p.m.
- Call the debtor at work if the
collector has reason to know that the debtor's employer does
not permit such calls
A consumer who disputes a debt
should send written notice to the debt collector detailing the
nature of the dispute. The debt collector must then provide the
consumer with information on how to contest the debt, and, upon
request, must assist the consumer in completing the necessary
forms.
The debt collector must respond
to a consumer's request within 30 days after receiving the written
notice of the dispute, and must correct any improperly reported
item.
A consumer who feels a debt
collector is using improper, harassing, or fraudulent collection
methods should notify the collector in writing that he or she
wants to stop all further contact from the collector.
The consumer should keep a copy
of the letter and mail the original to the collector by certified
mail. A consumer also may seek a civil injunction and damages
against a collector, and/or may report violations to the Office of
the Attorney General to determine if civil or criminal actions may
be taken against the collector.
