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IMPORTANT Information about the Fair Debt Collection ACT!

Published by admin on January 9, 2010

IMPORTANT Information about the Fair Debt Collection ACT!

Fair Debt Collection Practices Act, also known as the FDCPA, is a law that was passed by Congress that regulates the methods debt collection agencies can use to collect money from debtors who are behind in their payments. In the past many collection agencies will use unethical methods to extract payments from people, and this law was created to regulate them while protecting the debtor.

There are certain guidelines that collection agencies must follow when trying to get payments. The FDCPA applies to a wide variety of debts, including medical bills, car loans and credit cards. Many countries have several laws that serve to protect consumers, and their laws to cover debts that aren’t covered by the FDCPA. It is important to have a basic understanding of this law. It will keep you from being a victim of debt collection agencies that use illegal methods to extract payment from you.

Under this law, debt collection agencies are not allowed to contact relatives or employers of a debtor. The only person who can be contacted by anyone other than yourself is a person who is a signatory on the loan with you. They are also not allowed to threaten to ruin your credit or report you to a lawyer to intimidate you into making payments. They can only warn you of these actions when they are in the process of getting ready to do it. Submission of false warnings to scare you to make payments is not allowed.

Debt collection agencies are not allowed to make phone calls at times that are considered unfair. All phone calls made before 8 or 9 are not allowed. You must accept all calls made outside these hours only. Debt collectors are not allowed to call you while you’re at your place of employment. The use of profanity or racist terms is not allowed. Letters can be sent to you, similar to those sent by the courts and if they decide to sue you they are not allowed to take you to court, which is far from your home.

It is important to understand this law if you are in a situation where you have a great debt and having trouble making payments. While you should always try to pay back what you owe, debt collection agencies are limited in how they can contact you about these payments. Many agencies may violate this law, and if you are not familiar with it you will not be able to take action to defend yourself. If a collection violates FDCPA, it may be possible for you to take them to court. If it is found that they have made numerous violations against debtors, a class action may be filed.

If a collection violates this law when contacting you, you can report the matter to the State Attorney General’s office. If the body is in another state, you can contact the FTC for help. You can also dispute the debt you owe by sending a letter to the Agency within 30 days after the first notice informing them that you do not owe them anything. The agency will be forced to stop contacting you, but may decide to take further steps that may require you to go to court.

The FDCPA is an important law that can protect, if you are contacted by collection agencies. Although it is important for you to pay any debt you have.

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