Filing for bankruptcy usually means you already have debt collectors knocking on your door. If you better understand the Fair Debt Collection Act, you can ensure you know whether those debt collectors are acting properly or breaking the law.
What Is the Fair Debt Collection Act?
The Fair Debt Collection Act was first put into place in 1977 and the whole purpose of it is to ensure consumers cannot be harassed by debt collectors. There are parts of the act that cover various things such as how the collectors can contact consumers, how they handle telephone calls, and how they can disseminate information about your credit. There are also parts of the Fair Debt Collection Act that cover what you can do if your rights have been violated.
Who Is Covered by the Act?
The Fair Debt Collection Act only comes into play with third party debt collectors. In other words, collection agencies that have purchased your debt and are now trying to collect on it. These third party collectors have to follow the law of the act and that means they cannot harass you in an attempt to get the money. This act doesn’t cover banks, retailers, and issuers of credit who may be trying to collect debt from you.
What Does the Act Do?
There are several things that the Fair Debt Collections Act does in order to ensure you are treated properly, even when you owe money to collectors. These things include:
• The debt collector must make first contact with the consumer and inform them that they have the right to dispute that debt. The consumer also has the right to ask for detailed information about the debt and that information has to be mailed within five days of the first telephone contact.
• If the consumer feels that the debt is incorrect, then they have the right to put together a dispute letter, which needs to be sent within one month of initial contact with the debtor. During this time, the collection agency must stop all collection contact until the debt has been confirmed.
•Debt collectors may only contact consumers between the hours of eight in the morning and nine in the evening. If the debt collector has been informed that they cannot call you at work, then they must stop this as well.
• Contact with others in your life about the debt must be limited to asking for your current contact information.
This act is designed to protect you so that you will not be harassed by debt collectors. If you are dealing with severe debt and the collectors are harassing you, then it is vital that you find out whether or not those collectors are breaking the rules of the Fair Debt Collection Act. If they are, then you may have a case against them. No matter what, you will need to contact an attorney who specializes in debt issues as well as bankruptcy law. You may need to file bankruptcy at some point, but in the meantime, you do need to take action if you are harassed by debt collectors.
