A debt collector is a person like an attorney who collects debts owed to others regularly. They can collect personal, family and household debts like car loans, mortgages, credit card debts and personal loans. Law allows the debt collector to contact you personally, through mail, telephone, telegram or fax. But they may not contact you at odd hours or places like early morning or late night, unless you have authorized them. They are also not allowed to call you up at work if you have instructed them not to do so.
But nowadays some debt collectors are following illegal methods like: harassment, oppression, or abuse like threats of violence and physical harm, disclosing the names of the consumers who have reneged on their debts to third party except a credit bureau, using of foul language, calling up repeatedly to irritate, making false or misleading statements like they are lawyers or government representatives, stating that you have committed a crime, indicate they work for credit bureau, give a wrong figure for your debt, inform that the papers you have received are legal documents when in reality they are not and vice versa. The debt collectors cannot threaten to arrest you if you fail to repay your debt, attach, seize or sell your assets or wages unless the collection agency or creditor wants to do so or take legal action against you when in fact it is unauthorized or they do not want to do so. They are also prohibited from giving wrong credit information about you to others, sending you the documents that resemble official documents of the court or the government while in fact they are not, giving false name. They cannot collect any excess amount above your debt unless legally allowed, deposit a post dated cheque before the date is due, trick you into accepting collect calls or making you pay for the telegram, send you a postcard or seize on threaten to seize your property until authorized by law.
If the debt collector does any of the above illegal activities you can stop them. The Fair Debt Collection Practices Act mandates that the debt collector gives you a fair treatment and disallows the specific methods of debt collection. You can write a letter to the collector asking them to stop. After they receive your letter, they will not get in touch with you unless they want to take some action against you. But remember, if the debt collector does not contact you does not mean your debt is wiped off. The debt collector or the creditor can still take legal action against you.
The debt collector must contact your attorney (if you have one) about your debt. They can contact other people if you do not have a lawyer but only to get personal details about you. They can call up the third parties only once. After contacting you, the debt collector has to send you a written notice within 5 days informing you about the amount you owe, to whom you owe and the remedial measures to take if you think you do not owe money. If you do not owe money, you have to send a written letter within a month to the collection agency informing the same. But if they send you the proof of your debt, the collector can reestablish contact with you. If you owe money to more than one creditor, the money you pay should be applied only to the debt you have selected and not to any debt you claim you do not owe.
If the debt collector violated the law, you can file a case against them in the state or federal court within a year from day the law was breached. You can get the compensation for the damages you suffered as well as extra amount till $1,000. You can also be awarded the court costs as well as lawyer’s fees. You can also join a group and get damages till $500,000 or 1% of the net worth of the collector whichever is lower. You can contact the state Attorney General’s office and the Federal Trade Commission for reporting any problems you may have with the debt collector. They can inform you about your rights under the debt collection law of the state.