Your Rights Under the Debt Collection Practices Act

Debt is a daily fact of life for many Americans. The cost of living continues to rise, but wages have not kept pace with this increase. On top of that, student loan debt and credit card debt are becoming the leading causes of bankruptcy in the US.

In this article, GM Law Firm explains the Fair Debt Collection Practices Act and the rights that are associated with it. Predatory debt collection is not an acceptable means to collect debt.

Consumers need to know their rights related to the collection process, especially if they find themselves in conflict with a debt collection company.

What Is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act eliminates abusive debt collection practices and prevents debt collectors from using these tactics to ensure that a debt is paid.

The act prevents harassment of those who owe a debt and prohibits profane language and threats of violence.

Many people who owe a debt do not realize that they have access to the rights granted by this act and will fall prey to predatory debt collectors. Read on to learn about your rights under the Fair Debt Collection Practices Act.

What Are Your Legal Rights?

Communication is in your control. Collection entities cannot call you late at night or early in the morning.

They are also not allowed to contact you again if you expressly tell them not to. If you have an attorney, they must speak with your attorney and not with you.

Harassment is not allowed. Any misleading or threatening tactics are not allowed to be employed against you in the collection of your debt.

A debt collection entity cannot hide its identity when they contact you. It is forbidden to list your debt for sale to the public as well.

Collectors must be honest. It is forbidden to misrepresent the amount of the debt you owe or falsely claim that the debt has not passed the statute of limitations.

Debt collectors cannot state that there will be legal repercussions for non-payment of the debt. Collectors are also not allowed to lie about who they work for.

Unfair practices are prohibited. Collectors can’t solicit postdated checks or other incriminating materials.

They cannot deposit a check before its intended payment date. Collectors are also not allowed to charge fees and interest on your debt.

Collectors must validate your debt. Lastly, collectors must be clear about how much you may owe and must be able to provide the creditor’s name who is seeking payment.

There must also be a statement of assumption of the debt by the collecting entity that can also be provided in writing.

Knowing your rights when you owe a debt is very important to ensure that you do not pay a penny more than you owe for the debt.

Threatening and predatory behavior is not allowed to be employed against you.

If you ever find yourself in a situation where a collection agency has reached out to you, remember these rights before you agree to any form of payment. If you believe a debt collector is violating the law, contact a lawyer for assistance.