The Fair Debt Collection Act

Most commonly asked questions

When it comes to your personal debt issues and especially when you are trying hard to achieve a debt free lifestyle, the more you know about the law, the more you know, the better.

If you utilize credit cards, owe any money on a loan, or are paying off a home mortgage, you are a debtor. Just about every person on the US is a debtor. Rarely, an individual has absolutely zero debts.

The Fair Debt Collection Practices Act was passed into law by Congress about 30 years ago in 1977 to prohibit certain methods of debt collection. Of course, the law does not take away any legitimate debt you may owe.

The following questions are the most commonly asked and associated inquiries we have found most debtors to have regarding this Act. They along with their respected answers will aid you in understanding your rights under this Act.

What debts are covered in this act?

Personal, family, and household debts are all covered under the Fair Debt Collection Practices Act. This includes any money owed for the purchase an automobile, medical care, and all charge accounts.

Who is a debt collector?

A debt collector is any person other than the creditor who regularly collects debts owed to others. Under the 1868 amendment to this Act, this includes attorneys who collect debts on a regular basis. The Fair Debt Collection Practices Act does not however apply to attorneys who only handle debt collection services a couple of times each year they must be full time collectors.

How can debt collectors contact you?

Debt collectors are allowed to contact you in person, by mail, telephone, or even sending you a telegram. But, a debt collector cannot contact you at an inconvenient time of day or at unusual places. Typically, laws prohibit any bill collector to call you between the hours of 9PM and 8AM unless you personally give them permission to do otherwise. Also, they may not contact you at work if they have reason to believe that your employer does not approve. Meaning, if you can’t get personal calls at work, your employer would consider this a person call. This is a grey area to say the least.

Can you stop bill collectors from contacting you? You may stop the bill collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency gets your letter, they may not contact you again except to say there will be no more contactor if they contact you to notify you that some specific action will be taken. If you do intend to write, send it certified so you have proof you sent it and proof of them receiving it. Again, they can contact you still if they take further action legally.

Can a debt collector contact anyone else regarding your debt?

If you have an attorney, the collector may not contact anyone but that attorney. If you do not have an attorney, a debt collector may contact other people, but only to find out where you are (live and work). In most all cases, the collector is not permitted to tell anyone other than you or your attorney that you owe money. Collectors are usually prohibited from contacting any person more than one time. But, once they call that person or persons one time won’t that one time enough to let the cat out of the bag? This is another grey area. They cannot harass, but it is not like them contacting someone you know will keep that person from wondering what is going on. Details are kept intact, but really. If you are concerned about your privacy that much, you need an attorney.

What is the debt collector required to tell you about the debt?

Within 5 days after you are first contacted, the debt collector must send you a written notice telling you the amount of money that you owe the company, the name of the creditor to whom you owe the money to, and what to do if you think you do not owe the money and there is some sort of mix up.

What should you do if you think there is a genuine mistake?

The debt collector may not contact you if, within 30 days after you are first contacted, you sent the collector a letter stating that you do not owe the money. But, a debt collector can begin collection activities again if you are sent proof of the debt, like a copy of the bill.