Know your debt collection rights
Filed under: Debt
I'm a firm believer that those who owe money should pay it. If a debt collector calls you about a legitimate debt you owe, it's not automatically harassment. It's not necessarily unfair for the debt collector to inquire about how and when you're going to be paying what you owe. You borrowed the money, you should pay it back.However, there are debt collectors who violate the law when it comes to contacting you about your debt. It's important to know your rights so that you can be protected from those who abuse the people who owe money. The Fair Debt Collection Practices Act sets forth the rules that debt collectors must follow, and the rules are pretty cut and dry.
Your debts include things like credit cards, home mortgages, auto loans, personal loans, medical bills, and the like. Debt collectors cannot:
- Contact you before 8 a.m. or after 9 p.m. unless you agree to allow them to do so.
- Contact you at work if the debt collector knows your employer prohibits it.
- Contact you after you write a letter asking them to stop contacting you. (This doesn't get rid of your responsibility to pay the debt, however.)
- Contact others about your debt, except your attorney.
- Threaten you with violence or harm, or swear at you
- Lie to you about the debt, who they are, or how much you owe
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
Reader Comments (Page 1 of 1)
8-28-2008 @ 5:13PM
MK said...
Know your debt collection rights
Tracy Coenen
....I do, and I agree that if you owe a debt, you should pay it, that being said it is apparent that you do not Know your debt collection rights.
1. While a letter telling someone not to contact you is the best way, particularly in regards to telephone calls, it is not the only way - all that has to be done is tell them not to call. If they call after that, it is absolutely harrassment (though without the letter you may have to be creative to prove it).
2. "Contact you at work if the debt collector knows your employer prohibits it" - wrong it is illegal for them to contact you at work, it is also illegal for them to contact your employer.
3. It is also illegal for them to make any threat, even one they can legally carry out - e.g. they can not threaten you to "put it on your credit"
4. They can put it on your credit.
5. You can writed a letter 150 words or less explaining your side and it will go on your credit file.
6. After 5-10 depending on which state you live in, they can not force collection or put it your credit.
See Fair Credit Reporting Act, & Fair Debt Collections Practices Act
My advise
Reply
8-26-2008 @ 6:12PM
Tracy Coenen said...
MK - Unfortunately, you are mistaken. The above information is taken from the FTC site, and further reading (the entire law) is found here:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf
1. The law specifically states you must do this IN WRITING.
2. It is NOT illegal to contact you at work, although urban legend promotes this myth. It is only illegal if you tell the debt collector you are not allowed to receive their calls at work and they don't comply.
3. Wrong again. They cannot threaten harm to you. But they can inform you of legal actions they may engage in, such as putting a valid debt on your credit report.
4. Of course a debt can be put on your credit report if it is valid.
5. You can write a letter, but it will have little (if any effect) on your chances of getting credit in the future.
6. I would challenge you to show me any such law.
8-26-2008 @ 8:02PM
SB said...
i think mk was referring in #6 to the statue of limitations on debts. every state has a statue of limitations on debts on when debts can be collected.
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9-08-2008 @ 6:41PM
MK said...
1. You are looking at the wrong law - all laws apply not just the one you are looking at.
2. You are wrong - your version is the gung-ho collector who thinks he has the right to do anything.
3. Does not merit a response really - it is what it is
4. But since you agree - you satill have to say something - like a hang up with getting the last word.
5. If you put a statement on the file, under the law (probably one you havent looked at) requires all creditors to ask for an explanation of your side IF THEY CONSIDER THE MARK IT WAS WRITTEN AGAINST.
6. See: http://www.debtsteps.com/debt-collection-statute-of-limitations.html
http://www.consumerfraudreporting.org/debtcollectionsol.php
The bottom line is, you are a bill collector SPREADING MISINFORMATION
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9-19-2008 @ 7:45AM
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6-09-2009 @ 11:12AM
susan said...
can a collector come to your home or office after you tell them to cease and desist?
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