Debt Collectors

The Fair Debt Collection Practices Act (or FDCPA) is a federal law that regulates the activities of those who collect consumer debts. The act ensures that debt collectors follow these rules:

• contact must be made by mail, in person, by telephone or by telegram during 'convenient hours' (commonly between 8 am and 9 pm)
• within 5 days of the first contact, they must send you a written notice stating the name of the creditor you owe money to (and the name of the original creditor if the debt has been sold or assigned to someone else), the amount of money you owe and what to do if you dispute the debt
• they may not continue collection efforts after you send them written notice within 30 days of the first contact that you dispute all or part of the debt (however, they may begin collection activities again if they then send you proof of the debt)
• they may not continue to contact you after you have sent a written request telling them not to contact you (however, they may contact you to tell you that collection efforts are being terminated or that they intends to file a lawsuit)
• they may not contact you if you are represented by a lawyer (they must contact your attorney instead)
• they must not reveal or discuss the nature of debts with third parties (other than your spouse or attorney)
• they may not contact you at work if they have been told (verbally or in writing) by you that this is not acceptable, or if the collector knows (or has reason to know) that the employer forbids employees from being contacted by debt collectors at the workplace
• they may not use obscene or profane language, threaten violence against you or your property, make you accept collect telephone calls or pay for telegrams, repeatedly telephone you to harass or annoy you, or use false or misleading information (such as threatening you with arrest or legal action that is not actually contemplated or even possible) in an effort to collect the debt
• they may not report false information on your credit report or threatening to do so in the process of collection

If a debt collector violates the law, you should write to your nearest office of the Federal Trade Commission about the activity. You may also file a federal or state lawsuit against the debt collector for violation of the law. However, it's worth remembering that there is normally a 1 year statute of limitation, which means that you must file the lawsuit within 1 year of the violation. By filing, you may be able to recover the actual damages that you have suffered, along with 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.