What is the Fair Debt Collection Practices Act, and how does it work?

 

It's critical that you understand how debt collectors should handle you as a borrower. There are government rules and regulations in place to protect you from debt collectors and collection organizations harassing you. You have the option of contacting authorities and taking the next step if you are being treated in any of the following ways. Continue reading to learn more about the Fair Debt Collection Practices Act and how you as a borrower should be treated.

First and foremost, it's critical to understand whose debtors the FDCPA protects. You're covered if you're dealing with third-party debt collectors for student loans, mortgage loans, or auto loans. You won't be covered by the Fair Debt Collection Practices Act if you're dealing with debts from other people, such as company loans. The FDCPA is a federal law that regulates business-to-business interactions. This is where companies like Transworld Systems and Midland Credit Management fit in.

WHAT EXACTLY IS HARASSMENT?

The FDCPA plainly states that there is a time and place for calls about your debt. Debt collectors are not allowed to contact borrowers before 8 a.m. Unless the borrower has previously confirmed that this is the time they want them to contact, or after 9 a.m. Debt collectors may contact you at your home or place of business. If you notify the debt collector directly or in writing that they are not allowed to call your employment, they must respect your desires..

In addition, if the debt collector does not have the borrower's contact information, they have the power to call neighbors or relatives to obtain it. However, they are unable to provide any details about the bill or identify that they are phoning from a debt collecting organization. As a result, they are only able to discuss your debt with you or your spouse. If you're being represented by an attorney in this case, the debt collector can speak with them as well.

Furthermore, debt collectors are not permitted to use or threaten violence in order to collect a debt. They are not allowed to use vulgar or derogatory language. It is entirely unacceptable to lie. They won't be able to tell you that you owe more money than you have. They can't also mislead themselves by claiming to be lawyers or police officers when they aren't. They also can't threaten to sue you unless they intend to follow through on their threat. All of these acts are intended to intimidate customers.


WHAT IS FAIR?

The debt collector is required to give you a validation notification within five days of the initial contact. This notice must include three crucial pieces of information: the amount owed, the person to whom you owe it, and what to do if you don't believe the debt is yours. If you don't think it's for you, you have 30 days from the date you received the verification notice to write a letter. The debt collector must then provide written evidence of your debt, such as a copy of your bill. The debt collector can reach out to you via phone, email, mail, and text messaging, among other methods.

You can send a letter to the debt collector requesting that they cease contacting you if you don't want them to contact you. Legally, they must either acknowledge that they will stop contacting you or take a step forward the next time they contact you (filing a lawsuit, etc.)

Also, when it comes to contacting you about your debt, many states have statutes of limitations that debt collectors must follow. When you miss a payment on one of your debts, the time limit normally starts. A debt becomes time-barred once a specific number of years have passed. However, each state's statute-of-limitations rules differ, so it's crucial to research your state's specific rules before taking action.

NOTIFICATION OF ILLEGAL ACTIVITY

According to a credit repair company, if you come across any illegal behavior, there are a handful of locations you can call. The Federal Trade Commission, the Consumer Financial Protection Bureau, or your state attorney general's office are all good places to start. Your state's rules vary, but contacting your state attorney is the best bet for properly complying with state laws and avoiding wasting your time.

You can also sue the debt collector if the law is broken within one year. It's crucial to remember, though, that even if your debt collector engages in illegal behavior, you must still refund the bill.

Dealing with debt collectors may be a time-consuming and frustrating process. However, understanding the Fair Debt Collection Practices Act ensures that you are aware of your rights. You can then be aware of any illegal behavior and ensure that debt collectors handle you properly and honestly.

The Phenix Group can assist you if you are being called by a debt collector or need assistance restoring your credit. Through our attorney-assisted credit repair process, we can help you improve your credit ratings and attain financial security. Contact us at (972) 630-6112 for a free consultation now!


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