The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collectors from using abusive, unfair, dishonest, or misleading practices to collect money from you. The Federal Trade Commission (FTC) is the federal government’s agency that enforces your rights under the FDCPA. [2314]
Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy overdue debts and then try to collect them.
Here are some questions and answers about your rights under the Act.
No. A debt collector may not contact you at inconvenient times or places, such as before 8 AM or after 9 PM, unless you agree to it. And collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there.
If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter – even if you don’t think you owe the debt, can’t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector – in writing – to stop contacting you. Here’s how to do that:
Write a letter to the debt collector and make a copy of the letter (see PG. 702 below for a sample letter). Send the original by certified mail, and pay for a “return receipt” so you’ll be able to prove that the collector received the letter. Once the collector receives your letter, they may not contact you again, with two exceptions: A collector can contact you to (1) tell you there will be no further contact, or (2) let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector to whom you owe money will NOT get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you in court to collect the debt.
If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.
Every collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.
If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification (proof) of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written proof of the debt, like a copy of a bill for the amount you owe.
Harassment: Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
False statements: Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
> Debt collectors also are prohibited from saying that:
> Debt collectors may not:
Unfair practices: Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you select. Equally important, a debt collector may not apply a payment to a debt you don’t think you owe.
If you don’t pay a debt, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.
Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order. Don’t ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment.
Many federal benefits are exempt from garnishment (meaning they cannot be taken to pay certain debts), including:
BUT federal benefits may be garnished under certain circumstances, including to pay delinquent taxes, alimony, child support, or student loans.
You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can’t prove that you suffered actual damages. You also can be reimbursed for your attorney’s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.
If a debt collector files a lawsuit against you to collect a debt, respond to the lawsuit, either personally or through your lawyer, by the date specified in the court papers to preserve your rights.
Report any problems you have with a debt collector to the California Attorney General’s office, the Federal Trade Commission, and the Consumer Financial Protection Bureau. California has its own debt collection laws that may give you more rights and protections than the federal Fair Debt Collection Practices Act.
Federal Trade Commission – Consumer Response Center
Telephone: (877) 382-4357
Website: https://www.ftccomplaintassistant.gov/#crnt&panel1-8
[Name of Collection Agency]
[Address of Collection Agency]
RE: Notice to Cease Contact: Case # ________
[Note: If the collection agency has sent written notice, your case number is likely in the letter. If you have not received a written notice from the collection agency, you can put other information to identify your case. For example, show the date you were contacted by the collection agency.]
To [person whose name appears on agency's notice to you]:
On [date], I was contacted by [name of person who called you] from your agency, who informed me that [name of collection agency] is attempting to collect [amount of claimed debt].
On [date] I received a written notice of the claimed debt, a copy of which is attached.
This is to give you notice to cease all contact with me or anyone else except the creditor about this claimed debt. If you must contact me, please do so in writing and not by telephone. I look forward to your acknowledgement that you have received this notice by [put date that is two weeks after the date of your letter].
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