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FAIR DEBT COLLECTION
If you use credit cards, owe money on a personal loan, or are
paying on a home mortgage, you are a "debtor." If you fall behind
in repaying your creditors, or an error is made on your accounts,
you may be contacted by a "debt collector."
You should know that in either situation the Fair Debt Collection
Practices Act requires that debt collectors treat you fairly by
prohibiting certain methods of debt collection. Of course, the
law does not forgive any legitimate debt you owe.
This brochure provides answers to commonly asked questions to
help you understand your rights under the Fair Debt Collection
Practices Act.
What debts are covered?
Personal, family, and household debts are covered under the Act.
This includes money owed for the purchase of an automobile, for
medical care, or for charge accounts.
Who is a debt collector?
A debt collector is any person, other than the creditor, who
regularly collects debts owed to others. Under a 1986 amendment
to the Fair Debt Collection Practices Act, this includes
attorneys who collect debts on a regular basis.
How may a debt collector contact you?
A collector may contact you in person, by mail, telephone,
telegram, or FAX. However, a debt collector may not contact you
at unreasonable times or places, such as before 8 a.m. or after
9 p.m., unless you agree. A debt collector also may not contact
you at work if the collector knows that your employer
disapproves.
Can you stop a debt collector from contacting you?
You may stop a collector from contacting you by writing a letter
to the collection agency telling them to stop. Once the agency
receives your letter, they may not contact you again except to
say there will be no further contact. Another exception is that
the agency may notify you if the debt collector or the creditor
intends to take some specific action.
May a debt collector contact any person other than you concerning
your debt?
If you have an attorney, the debt collector may not contact
anyone other than your attorney. If you do not have an attorney,
a collector may contact other people, but only to find out where
you live and work. Collectors usually are prohibited from
contacting such permissible third parties more than once. In most
cases, the collector is not permitted to tell anyone other than
you and your attorney that you owe money.
What is the debt collector required to tell you about the debt?
Within five days after you are first contacted, the collector
must send you a written notice telling you the amount of money
you owe; the name of the creditor to whom you owe the money; and
what action to take if you believe you do not owe the money.
May a debt collector continue to contact you if you believe you
do not owe money?
A collector may not contact you if, within 30 days after you are
first contacted, you send the collection agency a letter stating
you do not owe money. However, a collector can renew collection
activities if you are sent proof of the debt, such as a copy of a
bill for the amount owed.
What types of debt collection practices are prohibited?
Harassment. Debt collectors may not harass, oppress, or abuse
any person. For example, debt collectors may not:
l use threats of violence or harm against the person,
property, or reputation;
l publish a list of consumers who refuse to pay their debts
(except to a
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