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| Copyright ©2006 by Deming, Parker, Hoffman, Green, Campbell & Daly, L.L.C. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include the above copyright notice. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. |
Green, Campbell & Daly, L.L.C. |
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| Fair Debt Collection Practices |
| What debts are covered by the FDCPA? Consumer debt of all kinds is covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts. It does not include private debt or debts between businesses. |
Who is a debt collector? A debt collector is any person who regularly collects
consumer debts. This includes attorneys who collect debts (defined above) on a
regular basis. IMPORTANT NOTE: The original creditor is excluded from this
definition. That means that Sears, Citibank or Greentree (for example) can collect
debts without regard to the restrictions of the FDCPA. They can contact the debtor
at any time, speak to anyone they want, and say anything they want to collect the
debt, short of criminal threats or intentional infliction of mental distress.
How may a debt collector contact you? A collector may contact the debtor in
person, by mail, telephone, telegram, or fax. However, a debt collector may not
contact the debtor at inconvenient times or places, such as before 8 a.m. or after 9
p.m., unless he/she agrees. A debt collector also may not contact the debtor at
work if the collector knows that your employer disapproves of such contacts.
Should be sent certified so there is proof it was received.
Can you stop a debt collector from contacting you? The collector must stop
all contact if the debtor (or attorney) sends a written demand to stop further contact
about the debt. Once the collector receives your letter, they may not contact the
debtor again except to say there will be no further contact or to notify them that the
debt collector or the creditor intends to take some specific action. This letter should
be sent certified. Advise that it will not make the debt go away, and may increase
probability of the debtor being sued.
May a debt collector contact anyone else about your debt? If the debtor is
represented by an attorney, the debt collector must contact the attorney, rather
than the debtor. If debtor is unrepresented, a collector may contact other people,
but only to find out where the debtor lives, phone number, and where they work.
Collectors usually are prohibited from contacting such third parties more than once.
In most cases, the collector may not tell anyone other than the debtor and attorney
that there is a debt owed.
What must the debt collector tell the debtor? Within five days after the first
contact, the collector must send a written notice telling stating the amount owed; the
name and address of the creditor; and what action to take if the debt is disputed.
This notice must also state prominently that the debtor has a right to receive written
verification of the debt if the request is made within 30 days.
Until the written verification is provided the creditor is prohibited from taking further
collection action, including credit reporting, phone calls, letters, etc.
What types of debt collection practices are prohibited?
What control does debtor have over payment of debts? If than one debt is
owed, any payment must be applied to the debt the debtor designates. A debt
collector may not unilaterally apply a payment to any debt that is disputed.
What are the penalties for violation of the FDCPA? Debt collectors can be
sued in a state or federal court (including small claims court) within one year from
the date the law was violated. Damages include any actual damages and up to
$1,000 in penalties, plus attorney fees and court costs. A group of people also
may sue a debt collector and recover money for damages up to $500,000, or one
percent of the collector' s net worth, whichever is less.
Where can you report a debt collector for an alleged violation?
Complaints about debt collectors should be submitted to the state Attorney General'
s office and the Federal Trade Commission.
consumer debts. This includes attorneys who collect debts (defined above) on a
regular basis. IMPORTANT NOTE: The original creditor is excluded from this
definition. That means that Sears, Citibank or Greentree (for example) can collect
debts without regard to the restrictions of the FDCPA. They can contact the debtor
at any time, speak to anyone they want, and say anything they want to collect the
debt, short of criminal threats or intentional infliction of mental distress.
How may a debt collector contact you? A collector may contact the debtor in
person, by mail, telephone, telegram, or fax. However, a debt collector may not
contact the debtor at inconvenient times or places, such as before 8 a.m. or after 9
p.m., unless he/she agrees. A debt collector also may not contact the debtor at
work if the collector knows that your employer disapproves of such contacts.
Should be sent certified so there is proof it was received.
Can you stop a debt collector from contacting you? The collector must stop
all contact if the debtor (or attorney) sends a written demand to stop further contact
about the debt. Once the collector receives your letter, they may not contact the
debtor again except to say there will be no further contact or to notify them that the
debt collector or the creditor intends to take some specific action. This letter should
be sent certified. Advise that it will not make the debt go away, and may increase
probability of the debtor being sued.
May a debt collector contact anyone else about your debt? If the debtor is
represented by an attorney, the debt collector must contact the attorney, rather
than the debtor. If debtor is unrepresented, a collector may contact other people,
but only to find out where the debtor lives, phone number, and where they work.
Collectors usually are prohibited from contacting such third parties more than once.
In most cases, the collector may not tell anyone other than the debtor and attorney
that there is a debt owed.
What must the debt collector tell the debtor? Within five days after the first
contact, the collector must send a written notice telling stating the amount owed; the
name and address of the creditor; and what action to take if the debt is disputed.
This notice must also state prominently that the debtor has a right to receive written
verification of the debt if the request is made within 30 days.
Until the written verification is provided the creditor is prohibited from taking further
collection action, including credit reporting, phone calls, letters, etc.
What types of debt collection practices are prohibited?
- Harassment. Debt collectors may not harass, oppress, or abuse the debtor
or any third parties they contact. For example, debt collectors may not:
- use threats of violence or harm;
- publish a list of consumers who refuse to pay their debts (except to a
credit bureau); - use obscene or profane language; or repeatedly use the telephone to
annoy someone. - Repeated phone calls are not in themselves considered harassment.
- False statements. Debt collectors may not use any false or misleading
statements when collecting a debt. For example, debt collectors may not:
- falsely imply that they are attorneys or government representatives;
- falsely imply that you have committed a crime;
- falsely represent that they operate or work for a credit bureau;
- misrepresent the amount of your debt;
- indicate that papers being sent to you are legal forms when they are
not; or - indicate that papers being sent to you are not legal forms when they
are.
- Prohibited statements:
- you will be arrested if you do not pay your debt;
- they will seize, garnish, attach, or sell your property or wages, unless a
judgment has actually been taken; or - state or imply that a lawsuit or other action will be filed when it’s not
legally possible (e.g. past statute of limitations or attorney isn’t
admitted in Georgia), or when they do not intend to take such action.
- Prohibited acts:
- providing false credit information to anyone, including a credit bureau;
- sending anything that looks like an official document from a court or
government agency when it is not; or - using a false name.
- Unfair practices:
The following are considered unfair practices and are therefore prohibited:
- collecting any amount greater than your debt, unless your state law
permits such a charge; - depositing a post-dated check prematurely;
- using deception to induce the debtor to accept collect calls or pay for
telegrams; - taking or threatening to take property unless this can be done legally;
or - contacting the debtor by postcard.
What control does debtor have over payment of debts? If than one debt is
owed, any payment must be applied to the debt the debtor designates. A debt
collector may not unilaterally apply a payment to any debt that is disputed.
What are the penalties for violation of the FDCPA? Debt collectors can be
sued in a state or federal court (including small claims court) within one year from
the date the law was violated. Damages include any actual damages and up to
$1,000 in penalties, plus attorney fees and court costs. A group of people also
may sue a debt collector and recover money for damages up to $500,000, or one
percent of the collector' s net worth, whichever is less.
Where can you report a debt collector for an alleged violation?
Complaints about debt collectors should be submitted to the state Attorney General'
s office and the Federal Trade Commission.
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