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What is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act
is federal law that regulates the activities of those who collect debts
from others. Many states have adopted similar laws regulating the
practices of debt collectors.
A debt collector:
- May contact you by mail, in person, by telephone or by telegram during "convenient hours" (commonly between 8 AM and 9 PM);
- May
not contact you at work if the collector knows or has reason to know
that the employer forbids employees from being contacted by debt
collectors at the workplace;
- May not contact you if you are represented by a lawyer (the debt collector must then contact your attorney);
- May
not continue to contact you after you have sent him/her a letter
telling him/her not to contact you (however, s/he may contact you to
tell you that some specific action is going to be taken);
- May
not contact you after you send him/her a letter by mail within 30 days
of the first contact that you dispute all or part of the debt (however,
s/he may begin collection activities again if s/he sends you proof of
the debt);
- Must within five days of the first contact send you
a written notice stating the name of the creditor you owe money to, the
amount of money you owe, what to do if you believe you do not owe the
money, and the name of the original creditor if different from the
current creditor (because the debt was sold or assigned to someone
other than the original creditor);
- May not threaten violence
against you or your property, use obscene or profane language,
repeatedly telephone you to annoy or harass you, make you accept
collect telephone calls or pay for telegrams, or use false or
misleading information in an effort to collect the "debt."
If
a debt collector violates the law, you can write a letter concerning
the activity to the nearest office of the Federal Trade Commission. You
can file a federal or state lawsuit against the debt collector for
violation of the law, although there is usually a 1-year "statute of
limitations." That means you have to file the lawsuit within 1 year of
the violation to recover the actual damages that you've suffered. You
can also recover up to a $1,000 in an individual lawsuit or $5,000 in a
class-action lawsuit for each violation, plus attorney fees and costs.
For more information on the Fair Debt Collection Practices Act visit the Federal Trade Commission's website.
(Reviewed 11.3.08)
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