Collection Agency Laws: How are Debtors Protected?

Debtors have federal protections against aggressive debt collection activity. The relevant act is the Fair Debt and Collection Practices Act, otherwise known as the FDCPA. Contained within the act are various laws that a collection agency must abide by or open themselves up to a lawsuit.

Understanding the Consumer Rights Granted by the FDCPA

Many consumers are unaware of the rights that have been inferred upon them by the government. The act itself is not a new one, having been in existence for many years. It has been modified over the years and is subject to changes in the future. However, these laws are there to protect the consumer against abuse by an unscrupulous collection agency. Does this stop them outright? Unfortunately this is not the case as the debt collection industry is not as tightly regulated as the credit card companies are. It's incumbent upon the consumer to bring legal action to an abusive collector.

Keep a log if a collector is abusing these laws from the FDCPA:

• Abusive language is absolutely not allowed. Behavior and conduct must be professional at all times
• Undue contact of family members. A collector is allowed to call a family member other than a spouse one time. They can only use that phone call to confirm contact information of the debtor. Any discussion of the debt with the relation is illegal.
• Phone contact can only occur between the local hours of 8:00am and 9:00pm. Any calls made outside of these hours is not allowed.
• Confirmation of debt must occur five days after the first phone contact. This must be in the form of a letter and has to have the name of the original debtor.
• Phone slamming, or constantly causing a phone to ring, is against the law. Contact has to be reasonable and must not be excessive if the debtor does not answer the call.
• There will be no publishing a debtor's name on a "bad debt list."
• Written contact has to be contained in a sealed envelope. Putting the information on a postcard can only be construed as an attempt to embarrass the debtor since anyone can read said card.

Legal Remedies Available to the Consumer

A debtor can sue in court for repeated violations of the act. If there is actual abuse going on, it's time to contact an attorney who's versed in debt collection laws. An attorney can file the lawsuit on your behalf and prove damages. A collection agency that loses their suit will have to pay the debtor's legal fees. This is a situation where the advantage is firmly for the debtor's side.