Fair Debt Collection Practices Act Prevents Debt Collection Agencies from Taking Certain Actions

Bankruptcy Clients Have Rights To Protect them Against Harassing Activities of Collection Agencies

Many of our bankruptcy clients who come into our law office are faced with overwhelming, abusive and harassing actions of debt collectors. People are subject to such actions as constant, harassing phone calls from debt collectors, being contacted at work, having friends and family contacted, being threatened with criminal prosecution.

What is unknown to many consumers is that The Fair Debt Collection Practices Act (FDCPA) is intended to protect consumers from these abusive practices.

Things the Collection Act Stops a Debt Collector or Collection Agency from Doing

Under the FDCPA, debt collector or collection agency cannot take the following actions:

1. Call or contact a third party about your debt for any purpose other than to locate you. They cannot give this person information on the debt.
2. Give or identify the debt collection agency company name to a third (3^rd) party without being expressly asked.
3. Disclose to a third party a debt is allegedly owed to the agency or creditor.
4. Communicate with a third party more than one time concerning the particular debt.
5. Communicate or even attempt to communicate with you at inconvenient times or places. The times have to be reasonable.
6. Contact you at work after being told not to. If you notify the debt collector or agency not to contact you at work, they cannot do so any longer.
7. Use or threaten violence or other criminal means, or use obscene or profane language. More and more our office is seeing collection agency letters that threatened criminal prosecution, which is one of the worst violations of the Fair Debt Collection Act.
8. Harass you by causing your telephone to ring repeatedly or continuously.
9. Use false, deceptive, or misleading representations or methods, including but not limited to (a) falsely representing it is affiliated with the United States or any State; (b) falsely representing the character, amount, or legal status of the debt; (c) falsely representing or implying that nonpayment would result in arrest or imprisonment or the seizure, garnishment, attachment, or sale of property or wages; (d) threatening to take an action against that cannot be legally taken or that was not actually intended to be taken; (e) falsely representing or implying that you committed a crime; or (f) communicating or threatening to communicate false or likely false credit information.
10. Use unfair or unconscionable means in an attempt to collect a debt, including but not limited to: (a) trying to collect an amount not expressly authorized by the debt agreement/contract or other applicable law; (b) threatening to or actually depositing a postdated check prior to the date on such check; or (c) taking or threatening to take money or property where there was no present right.
11. Force you to pay the debt prior to expiration of your 30 day right to dispute the outstanding debt.
12. Sue you except in the county you signed the contract, you live or own property that is the subject of the debt.
13. Falsely represent themselves as attorneys.
14. Contact you after being sent a letter from you (a) with a request they cease and desist all contacts or (b) that you refuse to pay the debt. That is correct. If you merely advise them that you refuse to pay the debt then the collection agency has to stop contacting you. They may send it to an attorney to file suit, but that collection agency can no longer contact you.
15. Engage in harassing, oppressive or abusive conduct. Many collection agencies violate this law as most of their conduct is harassing.
16. Add false charges or costs not provided for in the original agreement with the creditor.

Things a Debt Collector or Collection Agency Must Do:

1. Provide the notices required by 15 USC § 1692g either in the initial communication with you or in writing within 5 days after. This notice must contain the following:

A) the amount of the debt;

B) the name of the creditor to whom the debt is owed;

C) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

D) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

E) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

1. Notify you in the initial communication it is "an attempt to collect a debt and any information obtained would be used for that purpose."
2. Notify you during each collection contact the communication was from a debt collector or collection agency.
3. Disclose the caller's individual identity in every telephone call to you.

What Happens If a Collector or Collection Agency Violates the Fair Debt Collection Act

If a collection agency violates the Fair Debt Collection Practices Act, the creditor is subject to damages in the amount of $1,000 per violation, actual damages and attorney fees. Sometimes it may not be worth it to pursue a legal action, but the collection agency should be made aware that you know what they are doing is illegal and you intend to take action if they continue with their actions.

Sometimes Bankruptcy is the Best Option

Sometimes the debt is too overwhelming for an individual and bankruptcy under Chapter 7, Chapter 11 or Chapter 13 is the only option. You should consult with a lawyer further if you are being harassed or feel you cannot handle the debt problems. A person should know their rights concerning the actions of debt collectors or collection agencies. Many times just having this knowledge and making the debt collector aware that you have this knowledge will prevent the collector from further harassing conduct.

Contact a bankruptcy attorney in one of our New Jersey offices to discuss your rights.