National Legal Systems represents many of it's clients for the purpose of enforcing a client's rights under the FDCPA. This may include educating a client as to their rights under the ACT and taking legal action against a debt collectors that violates a clients rights under the FDCPA. If you owe consumer debt and want to ensure that the debt collectors adhere to the FDCPA National Legal Systems can help you, Contact us to learn more about our service.

 

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Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act, which is often referred to as the "FDCPA", was initially passed by Congress. It was created in response to the abusive conduct often engaged in by collection agencies. Congress was concerned that the abuses by collection agencies were causing an increase in the filings of personal bankruptcies. The purpose of the Act is to provide guidelines for collection agencies which are seeking to collect legitimate debts, while providing protections and remedies for debtors.

 

Types of Debts Covered By The FDCAP

The FDCPA applies to household debts, personal debts and family debts. These types of debts may also include debts associated with the purchase of a car, debts for medical care, debts for retail financing. They also include first and second mortgages, and debts owed on credit card accounts.

 

Please note that the FDCPA does not normally cover debts incurred for business or commercial purposes.

 

In addition to the Federal FDCPA, many states also have their own laws which govern collection agencies. State collection laws may also impose additional fines in the event of a violation and may cover a broader range of debts than the federal law.

 

Who is Covered By The FDCPA

 

The FDCPA governs the conduct of debt collectors and any person who regularly collects debts owed to others. This FDCPA also included attorneys who perform debt collection services as a normal part of their practice.

 

Its important to understand that, even if you do legally owe the debt, a third party debt collector's actions and conduct is governed by this law.

 

Employees of an original lender are not ordinarily covered by the Act. If you have a credit card and the bank employee calls you, the FDCPA does not apply. However if the bank has sent the account to a third party collection agency and they contact you, the outside agency's conduct is governed by the FDCPA.

 

If  the bank uses a third party collection agent, but so much as suggests that the collection activity is being performed by a third party collection agency, the FDCPA may apply to them simply because the collector represented to the debtor they they were a third party agent. There may be other laws in your state which restrict the conduct of third party collection agents.

 

Its interesting to note that, while the Federal Fair Debt Collection Practices Act applies to 3rd party collection firms engaged in the business of debt collection, many states have laws that include the original lender, thereby extended a debtor's rights to include both 3rd party collection firms as well the the original creditor.

 

 

Activities Restricted by Third Party Collection Agencies

 

The FDCPA restricts debt collectors from engaging in conduct including the following

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• Contacting a third party who does not owe the debt, such as a relative, neighbor, or your employer. However, third party collectors may contact a relative, neighbor or employer for the purpose of finding a debtor. They may not however, reveal the purpose of their call or any information about the subject debt. Co-signers to the debt, however, may be contacted by the debt collector;

 

• Threatening to refer your account to an attorney, harm your credit rating, repossession or garnishment, without actual intention of action on the threat. Please note that a debt collector may warn you of an actual impending intention to refer your case to an attorney or to report your debt to a credit agency. What they cannot do is use a false threat to try to intimidate you into paying;

 

• Making repeated telephone calls or telephone calls at unreasonable times. The act defines unreasonable times as contact before 8:00 AM or after 9:00 PM, unless you have given the debt collector permission to contact you during those hours;

 

• Placing telephone calls to an inconvenient place. For example, contacting you at work in violation of a policy by your employer that is known to the debt collector or following a request by you that they not contact you at work;

 

• When placing a telephone call to you at work, informing your employer of the purpose of the call, unless first asked by the employer;

 

• Using obscenity, racial slurs or insults;

 

• Sending letters which appear to have come from a court;

 

• Seeking collection fees or interest charges not permitted by your contract or by state law;

 

• Requesting post-dated checks with the intention to prosecute if they bounce;

 

• Suing in courts far removed from your place of residence;

 

• Making certain false representations in association with efforts to collect the debt, including the false claim that the person contacting you in relation to the debt is an attorney, falsely claiming to have started a lawsuit, using a false name, or using stationery that is designed to look like an official court or government communication;

 

• Using false claims to collect information about the debtor, such as pretending to be conducting a survey;

 

• Threatening you with arrest if you do not pay the debt.

 

The FDCPA and Your Attorney

 

If you have an lawyer, you can instruct the debt collector that all further contact through your attorney. Once the debt collector has been instructed to only contact you lawyer they should no longer make any direct contact with you. Failure to do so may be a violation of the FDCPA

 

If you do not have an attorney, third party debt collectors may make inquiries necessary to determine your phone number, you address and place and your place of employment. The debt collector may send a single letter to your last known employer inquiring about your present address if they do not have your current place of employment. In most cases, a third party debt collector may make only ONE inquiry about you when contacting a third party such as a relative, friend, neighbor or employer.

 

What a Third Party Debt Collector Must Tell You About The Subject Debt

Within five days of their first contact with you, the debt collector must send you a written notice telling you:

 

• How much money you reportedly owe;

 

• The name of the creditor to whom the debt is owed;

 

• That unless you, within thirty days after receipt of the notice, dispute the validity of the debt or any portion thereof, the debt will be assumed valid by the debt collector;

 

• That if you dispute the debt in full or in part within that thirty day period, the debt collector will obtain verification of the debt and mail it to the consumer; 

 

• That upon your written request within the thirty day period, the debt collector will provide you with the name and address of the original creditor, if different from the current creditor.

 

Your Right: Mini-Miranda Warning

 

When a debt collector first sends a dunning letter, the letter MUST include a warning known as the "Mini-Miranda Warning". The Mini-Miranda must state that the communication is from a debt collector and that "any information obtained may be used for that purpose".

 

Except for legal action taken by a lender or collection firm, all communication from the debt collector must also include the Mini-Miranda warning.

 

You should not that the thirty day notice requirement DOES NOT limit the debt collector from taking other measures to collect the debt during that initial thirty day period, which may include initiating legal action, as long as its action is not inconsistent with your right to contest the debt under the FDCPA.

 

Stop Collection Agencies from Contacting You?

 

If you desire that a debt collector stop contacting you, you may send the collection agency Cease and Desist letter instructing them to stop contacting you. Once the collection agency receives your Cease and Desist notification , they may contact you only ONE additional time to notify you that the collection agency or creditor intends to take a specific action in relation to the debt.

 

Its important to note that sending a Cease and Desist letter does not resolve the debt. If the debt is legitimately owed, the creditor may file a lawsuit against you in order to collect the debt, even if you prohibit further contact by the collection agency.

 

Disputing a Debt?

 

If you wish to dispute a debt, once you a receive a collection letter, you may write to the collection agency within thirty days to dispute the debt. Your letter should state that you do not owe the money and that the the debt collector must stop contacting you. This notice MUST be in writing. It must also be either hand delivered to the collection firm or be postmarked within thirty days of the first written notice from the debt collector.

 

The debt collector may begin collection of the debt after they send proof of the debt. The validation ,ay include such a copy of a bill for the amount claimed by the creditor.