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Under the federal Fair Debt Collections Practices Act (FDCPA), creditors are under strict regulations regarding the types of activities they can engage in when pursuing repayment of debts. The provisions of the FDCPA apply to collection agencies and other such companies that perform collections activity or purchase debt from another company or institution.
The Fair Debt Collections Practices Act is a consumer protection statute that allows individuals to protect their right to be free from creditor harassment. As a consumer protection statute the FDCPA allows individuals who successfully sue to recover statutory damages and attorney's fees incurred in pursuing the action. Some states have also enacted laws similar to the FDCPA that apply to the original creditor as well.
If you are experiencing harassment or undue pressure from a debt collection agency, call us to schedule a free consultation today. We are located in downtown Rock Island, Illinois. We are a small debt relief law firm serving the needs of individuals, families, and business owners throughout Western Illinois and Eastern Iowa.
What Is Forbidden Under the FDCPA?
The Fair Debt Collection Practices Act limits the methods and manner that a debt collector may use in an attempt to collect a debt. The Act proscribes the following acts and practices:
- Contacts at unusual times are prohibited: In the absence of any other information a debt collector shall assume that any time after 8 a.m. and prior to 9 p.m. are convenient times to contact the consumer.
- Contacts at unusual places are prohibited: In the absence of any other information a collector shall assume that contacting the consumer at a neighbor's home, a hospital, or a funeral parlor are unusual places.
- Contacting a consumer at work: Contacting a consumer at work may be prohibited depending on the occupation and is prohibited if the consumer informed the collection agent that such contact is not to be made.
- Contacting a consumer represented by an attorney is prohibited if the collection agent is aware the consumer has an attorney.
- Collection agencies are prohibited from informing most third parties such as family members, neighbors and co-workers about a consumer's debt.
- Collection agencies may contact third parties only in narrow circumstances to obtain contact information for the consumer and may not divulge that the consumer owes a debt.
- A collection agency can violate the FDCPA if it leaves messages on answering machines where a third party may overhear the message.
- Collection agents are prohibited from using phony business names in the collection of a debt.
- If a collection agent attempts to collect on a debt discharged in a bankruptcy it may be a violation of the FDCPA and is a violation of the discharge injunction.
- If a collection agent attempts to collect on a debt that is outside the statute of limitations it may be a violation of the FDCPA.
The restrictions listed above are not exhaustive and other actions may also be a violation. As you are reading this, debt collectors are lobbying Congress to lessen your protections under the Fair Debt Collection Practices Act. You should write to your congressional leaders to keep these protections strong!
How Do I Stop the Harassment?
Every consumer has the right to stop third-party collection contacts under the FDCPA. 15 U.S.C. § 1692c(c) states:
"If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communications with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except—(1) to advise the consumer that the debt collector's further efforts are being terminated; (2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or (3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy."
Since the above notice from the consumer is only effective when mailed upon receipt, it is recommended that you use certified mail to send the notification.
I am a Victim of Creditor Harassment. How Can I Recover Damages?
In order to recover damages it is essential for you to have proof:
- It is recommended that you keep a detailed journal with you at all times to write down the phone calls as you receive them. You should answer the phone calls and write down the name of the company, the name of the agent or his/her badge number, the phone number he/she called from, the date and time of the call, and what he/she was calling about. If you are represented by counsel you should inform the collection agent of your attorney's name and contact information. If you do not wish to be contacted again regarding the debt, you should inform the collector to not contact you.
- You should send a letter to the creditor by certified mail requesting that the collection agent cease communication. You should keep a copy of the letter you sent and keep the proof that they received your letter.
- You should keep a copy of all correspondence you received from a debt collector.
- If you are represented by an attorney you should obtain a fax number from the collection agent and have your attorney fax them a notice of representation.
Remember most cases come down to what you can prove. If you have been the victim of repeated harassment in violation of the FDCPA but you have no proof, then most consumer protection attorneys will not take your case.
The Fair Credit Reporting Act
The Fair Credit Reporting Act protects consumers from the inaccurate reporting of debts to credit reporting agencies. Inaccurate reporting may cause you to be denied for a home or car loan. It may also cause you to pay a much higher interest rate for the loans that you are given, which may cost you thousands to tens of thousands of dollars over the life of your loans. That is why it is important for you to check your credit reports on a regular basis.
You are entitled to pull one free credit report annually from each of the three main credit reporting agencies (Transunion, Experian, Equifax). If your debts are being reported incorrectly you have the right to demand that the information be corrected. You may also have a claim against the creditor or the credit reporting agency. If you believe that you have suffered damages as a result of the incorrect reporting of your debts please contact us to schedule a free consultation today.
A Debt Collector Is Threatening Me. What Should I Do?
Lately there has been a rise in phony collection agencies contacting individuals under the guise of collecting on a debt they owe. They will threaten the consumer with jail time if the debt is not paid right away and will attempt to obtain financial account information. If they are a real collection agency they would be in flagrant violation of the FDCPA. But more often than not you are being contacted by a fake company trying to get your money. If you receive any calls like this your first step should be to contact the consumer fraud division of your State's Attorney General's Office and file a formal complaint.
If You Believe You Are a Victim of Creditor Harassment, Call Us to Schedule a Free Consultation
We are a small local debt relief and consumer protection law firm. Our office is located in The Law Centre in downtown Rock Island, Illinois, just a short distance from both Iowa and Illinois federal courthouses. Our lawyers and professional staff proudly serve most clients throughout Western Illinois and Eastern Iowa. Call us toll free at 800-627-5704 or contact us by e-mail to arrange a free initial consultation today.
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