FAIR DEBT COLLECTION

If you use credit cards, owe money on a loan, or are paying off a home mortgage, you are a "debtor". Most Americans are. You may never come in contact with a debt collector. But if you do, you should know that there is a law to make sure you are treated fairly. The Fair Debt Collection Practices Act was passed by Congress in 1977 to prohibit certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe. The following questions and answers may help you understand your rights under the Fair Debt Collection Act.

What debts are covered?
Personal, family, and household debts are covered under the Act. This includes money owed for purchase of a car, 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 debt on a regular basis. The Act does not apply to attorneys who only handle debt collections matters a few times a year.

How may a debt collector contact you?
A debt collector may contact you in person, by mail, telephone, or telegram. However, a debt collector may not contact you at inconvenient or unusual times or places, such as before 8:00 a.m. or after 9:00 p.m., unless you agree. A debt collector may not contact you at work if the debt collector has reason to know that your employer disapproves.

Can you stop a debt collector from contacting you?
You may stop a debt 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 or to notify you that some specific action will be taken, if the debt collector or the creditor intends to take such action.

Who can the debt collector contact concerning your debt?
If you have an attorney, the collector may not contact anyone but the attorney. If you do not have an attorney, a debt collector may contact other people, but only to find out where you live or work. In most cases, the collector is not allowed to tell anyone other than you or your attorney that you owe money. Collectors are usually prohibited from contacting any person more than once.

What's the debt collector required to tell you concerning your debt?
Within five days after you are first contacted, the debt 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 to do if you believe you do not owe the money.

If you believe you do not owe the money, may a debt collector continue to contact you?
The debt collector may not contact you if, within 30 days after you are first contacted, you send the collector a letter saying you do not owe the money. However, a debt collector can begin collection activities again if you are sent proof of the debt, such as a copy of the bill.

What types of debt collection practices are prohibited?

1. Harassment - Debt collectors may not harass, oppress, or abuse any person. Debt collectors may not:
   • Use threats of violence or harm to the person, property, or reputation
   • Publish a list of consumers who refuse to pay their debts (except to a credit bureau)
   • Use obscene or profane language
   • Repeatedly use the telephone to annoy someone
   • Telephone people without identifying themselves
   • Advertise your debt



2. False Statements - Debt Collectors may not use any false statements when collecting a debt. Debt collectors may not:

   • Falsely imply that they are an attorney or government representative
   • Falsely imply that you have committed a crime
   • Misrepresent the amount of the debt
   • Indicate the papers being sent are legal forms when they are not
   • Indicate that papers being sent are not legal forms when they are



3. Unfair Practices - Debt collectors may not engage in unfair practices to collect a debt. Debt collectors may not:

   • Collect any amount greater than your debt, unless allowed by law
   • Deposit a post-dated check before the date on the check
   • Give false credit information about you to anyone
   • Send you anything that looks like an official document from a court or government agency when it was not
   • Use a false name



4. Furthermore, debt collectors may not say that:

   • You will be arrested if you do not pay your debt
   • They will seize, garnish, attach or sell your property or wages, unless the collection agency or the creditor legally intends to do so
   • Actions will be taken against you which legally may not be taken.

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