THE FAIR DEBT COLLECTION PRACTICES ACT
In 1978 the Fair Debt Collection Practices Act was passed. It is meant to protect your consumer rights when it comes to credit dealings, especially in debt collection. It outlines the behaviors that collections agencies are allowed to partake in, as well as actions they cannot take. This specific legislation is meant to protect a person, family, or household from the collection practices of debt. This does not necessarily apply to certain debts, including those specific businesses or isolated debts. It outlines how collection agencies can locate a debtor (somebody with debt) The collector must identify themselves, not reveal any information to people involved with the case, and if there is an attorney involved they can only contact them.
Another big section outlines what they cannot do in regards to contacting the debtor. It is important to note that they cannot use lying, deception force, embarrassment or other harassment tactics to get you to repay your debt.
If you are contacted by a creditor that:
Threatens you in any way
Publizes your debt
Communicates by post card
Calls you anonymously
Uses obscene language
Does not adequate disclose information
Collects additional fees
Gives you false or deceptive information
Accepts a check post dated more than 5 days
These actions are against the law and it is stated in The Fair Debt Collection Act very clearly the guidelines and actions credits are allowed to take. Be aware of how you are approached and spoke to, be aware of your rights and the law.
Information pulled from:
Notley, S. Credit solutions: Proven strategies to establish and re-establish your credit. The Manning Group
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Solutions Team