Credit Card Debt: Using Fair Debt Collections Act

The Fair Debt Collections Practices Act (FDCPA) is enforced by the U.S. Federal Trade Commission (FTC) to make certain that consumers are not abused, harassed, mistreated or deceived by collectors in attempts to collect credit debt payments. Under FDCPA, collection agencies, attorneys and companies that purchase delinquent debts are prohibited from engaging in unlawful activities that violate this legislation.

Understanding Credit Debt and the FDCPA

If you owe credit card debt, then you should know what rights you have under FDCPA. Here is a broad overview of how best to safeguard yourself from having potentially illegal action taken against you:

You have the right to not be contacted by collectors at inconvenient times and locations, e.g., early in the morning, late at night and at work, unless you agree.
You have the right to request in writing that the collector not contact you. Be certain to make a copy of the letter and to send it certified mail to ensure that it was received. The collector will then only be permitted to contact you either to inform you that there will be no further contact or to make you aware of specific action being taken against you, e.g., a lawsuit.
You have the right not to have the collector contact third parties other than to request your address, home telephone number and place of employment; however, these individuals can only be contacted once and specifics about your debt can only be discussed with your spouse and your attorney.
You have the right to receive a written validation of the debt in a five day period from the time contact is made that informs you of the amount owed. This notice must include the creditor's name of the creditor and inform you of what you must do should you wish to contest. You have 30 days to send a letter that states that you either do not owe the bill or that you require verification of the debt.
You have the right to have any payment you make applied to the debt of your choice if a collector is attempting to collect more than one debt from you.
You have the right to file a lawsuit against the collector within one year from the date that the law was violated if any component of FDCPA is not upheld. You may recoup dollars for your suffering, including medical bills and lost wages, and possibly up to $1,000 even if you cannot prove actual damages. You can also have your attorney and court fees reimbursed.

While FDCPA has been established to protect your rights, you should know that failure to pay credit card debt could result in a judgment against you. Collectors may then have a wage garnishment order issued against you, which will require your employer to withhold part of your compensation to apply towards the debt. Other federal benefits such as social security and veterans’ benefits may also be garnished.

Getting Help

If a creditor is violating your rights under the fair debt collections act, you should strongly consider contacting an attorney immediately. Your lawyer can help you enforce your rights against the creditor to ensure the harassment stops and that you are fairly compensated for the illegal actions your creditor took against you.

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