Basics: The FDCPA
There is a special set of restrictions that applies only to consumer debt collectors— third-party collection specialists collecting a non-business debt. These restrictions are collected in the Fair Debt Collection Practices Act:
PROHIBITED CONTACT
Other than credit reporting, debt collectors can only contact consumers and their spouses about the debt. Even so, debt collectors may not contact consumers:
REQUIRED INITIAL LETTER
Debt collectors must send consumers a letter with some basic information on the debt within five days of first contacting them. This letter must state:
NO HARASSING
Debt collectors cannot harass, oppress, or abuse consumers. Some examples of harassment are:
NO DECEPTION
Debt collectors cannot mislead or deceive consumers. Some examples of deception include:
NO UNFAIR ACTS
Debt collectors cannot be unfair or unconscionable with a consumer. These are the most shocking of abuses. Some examples are:
If you see any activity like this, please discuss the possibility of hiring a consumer attorney!
PROHIBITED CONTACT
Other than credit reporting, debt collectors can only contact consumers and their spouses about the debt. Even so, debt collectors may not contact consumers:
- At an unusual or inconvenient time or place
- Once they’ve been directed to the consumer’s attorney
- At work if the consumer tells them not to
- After the consumer has in writing asked the collector to stop or told the collector it won’t pay the debt
REQUIRED INITIAL LETTER
Debt collectors must send consumers a letter with some basic information on the debt within five days of first contacting them. This letter must state:
- The amount of the debt
- The name of the creditor
- The “mini-Miranda:”
- That the creditor will validate the debt if requested to within 30 days
- That the debt is presumed valid unless disputed within 30 days
- That the creditor will provide the original creditor’s name and address if requested within 30 days (if different than the collecting creditor)
- That the creditor will validate the debt if requested to within 30 days
NO HARASSING
Debt collectors cannot harass, oppress, or abuse consumers. Some examples of harassment are:
- Calling the consumer without identifying themselves as debt collectors
- Annoying the consumer by calling repeatedly
- Threatening violence
- Swearing
- Publishing the consumer’s name in a list of debtors
- Publicly advertising the debt for sale
NO DECEPTION
Debt collectors cannot mislead or deceive consumers. Some examples of deception include:
- Misrepresenting the amount, character, or legal status of a debt
- Not telling the consumer that they are trying to collect a debt
- Faking a connection with a government or reporting agency
- Pretending to be somebody else
- Lying about being an attorney
- Threatening illegal action
- Telling the debtor they have committed a crime to embarrass them
- Lying about whether a document is or isn’t part of a lawsuit
NO UNFAIR ACTS
Debt collectors cannot be unfair or unconscionable with a consumer. These are the most shocking of abuses. Some examples are:
- Collecting a debt that does not exist
- Threatening to take their property without right
- Charging the consumer fees for communicating with them
- Contacting the consumer by postcard
- Writing their name as a debt collector on the outside of envelopes
- Almost anything involving post-dated checks— ask an attorney!
If you see any activity like this, please discuss the possibility of hiring a consumer attorney!