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[T440]The Fair Debt Collection Act

by Lisa Max, Lis

Have you been treated unfairly by collection agencies recently? Debt collectors are aware that the majority of consumers don't know the laws they may use many collection tactics that oftentimes harass or invade your privacy. Luckily, there is a law that protects debtors from illegal practices of collection agencies and now it's the best time to learn about the law.

The Fair Debt Collection Practices Act

The FDCPA states that debts will be handled fairly, both on the part of the debtor, and the part of the creditor who is trying to collect on the debt. The main focus of this law is on the ethical practices of debt collectors in the ways of collecting debts, where the utilization of unjust, offensive, or misleading actions are forbidden.

For creditors, the FDCPA gives them avenues to more easily get their money with various ways to collect their debt, such as various ways to find the debtor, and various ways to contact that person. It also helps creditors to establish fees to charge for late payments, and helps them to establish actions when debts are not paid.

For the debtors, the FDCPA helps you to not only pay your debt back, but make sure that you are being treated fairly. The law offers you different options and terms, which include extensions and lowered payments, so that you can pay back the debt that you owe.

How the Fair Debt Collection Act Protects You

You can only be contacted during normal business hours -- after 8:00 am and before 9:00 pm local time. You can also be called at work but it should not cause undue interruption. If your employer asks them not to contact you at work anymore, they must listen to this as well.

If you send them a letter not to contact you again in relation to a particular debt they have to abide by that request. They can only contact you again to inform you of any further action they will take to collect your debt. Also, when they choose to contact your friends or relatives, they are only allowed to ask for your contact info and are not allowed to reveal to them the nature of their business with you.

Collection agencies are not allowed to intimidate, pressure, or threat you whenever they are trying to collect a debt from you. This includes the use of abusive, impolite or insulting language, false statements or other unprofessional acts. They have to clearly state the exact amount of debt that you owe and correctly reveal their identity to you at the beginning of every conversation with you.

The FDCPA also states that a collection agency must help you understand your rights. If you feel you haven't been informed of your rights then you should lodge a formal complaint against the company. To back up your claim, remember to document all of your conversations with the agency and keep a record of all of your correspondence.

You are Still Responsible to Make Debt Repayments

If you are struggling to pay back money that you owe, the fair debt collection act is something that you can rely on to make sure that you will be treated fairly by your creditors. Now that you know your rights are protected by the Fair Debt Collection Act it's the time to find ways to pay off your debt quickly.

The best first step is to call your lenders or debt collectors to negotiate your debt payments. If you don't try to hide away from them chances are they want to negotiate with you. Remember, the law protects you from unfair practices of collection agencies but you are still responsible to pay back the money that you owe.

Since they want their money they will want to work with you. Sometimes you will be able to discuss a suitable arrangement for paying off the debt. This solution will keep both parties happy as they'll get their money and you'll be able to pay it back at a rate that is best suit your budget.

The Fair Debt Collection Practices Act, which is more commonly referred to as the FDCPA, is a statute in the United States that is designed to protect consumers who have creditors who are attempting to collect a debt from them. This act has several important features that are designed to accomplish this. You should be aware of these.

One outstanding feature of the FDCPA is to provide consumers with a mechanism of disputing debts that they don't feel they are responsible for. It also provides a convenient way for consumers to keep track of debts that they ARE responsible for. It is helpful to know that there are strict penalties that can be ascribed to companies who break the fair debt collection act.

There are many activities that are not allowed by the Fair Debt Collection Practices Act. For example, creditor harassment is actually defined and prohibited under the act. One common practice that is considered harassment is when the creditor contacts the consumer after they have provided written notice that they do not wish to be further contacted or that they have no intention of paying the debt.

Another example of creditor harassment is contacting the debtor at their place of employment or business after the creditor has been informed in writing by the debtor that they do not wish to be contacted while they are at work. Calling the consumer repeatedly in a way that is intended to annoy, abuse or otherwise harass the consumer is also strictly prohibited.

If you, as the debtor, have an attorney representing you, the creditor or collection agency cannot contact you directly without violating the act. There are also specific hours set up within which a creditor can contact a debtor. If attempts at contact are made outside of these hours, the creditor is in violation of the act. Creditors are also banned from publishing the consumers name on a 'debt list'. Likewise if the creditor insists on contacting the consumer after the consumer has asked for validation of the debt or uses abusive or profane language, the are in conravention of the act.

If you have bills that you cannot pay, and are being hounded by creditors who are trying to contact you to pay on a debt, it's extremely important that you know your rights under the law. The Fair Debt Collection Practices Act was designed specifically with you in mind, and consumers as a group, need to be ready to take the appropriate actions when their rights are violated. That's why it is important to be aware of the rules, and keep abreast of the various regulations. Unless consumers are vigilant, the Fair Debt Collection Practices Act cannnot perform the job it was created to do. Harassment is a serious issue and needs to be reported.

Article Source : Help With My Debt

About Author

Both Lisa Max & Rick Hendershot are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Lisa Max has sinced written about articles on various topics from Credit Cards, Debt Reduction Consolidation and Debt Reductions. Lisa Max will show you various methods to get out of debt. This is a well researched website, providing information about . As a long ti. Lisa Max's top article generates over 33100 views. to your Favourites.

Rick Hendershot has sinced written about articles on various topics from Management Software Solutions, Management Software Solutions and Finances. Learn more about the - FDCPA - and how it protects you from debt harassment. Article by. Rick Hendershot's top article generates over 9900 views. to your Favourites.