Your Consumer Rights

Debt recovery agencies’ harassing the debtors is not something unheard of. Taking into consideration the malpractices adopted by debt collection agencies, the Congress passed The Fair Debt Collection Practices Act (FDCPA) to protect consumers.

FDPCA applies to debts that are unsecured and household debts that include – personal, credit card debts, car loans, medical care, finances on retail purchases and mortgages. Though the laws pertaining to FDPCA are similar across all states, some states might cover more types of debts than others.

Any third party debt collection agency is covered by FDPCA offering you protection from them. For instance, a debt relief company hiring a third party debt collection agency is covered. However, if the debt collection agency is operated by the lender itself, you may have to refer to an attorney to be on the safer side.

In order to provide you protection from debt collection agencies, the FDPCA has laid down following guidelines for debt management agencies:

• Other than you as a debtor, the debt collection agency is prohibited from contacting anyone you know, which includes – relatives, employers, and acquaintances. However, the co-signees can be contacted by the agency.
• Under no circumstances the representative of a debt collection agency can threaten you with consequences if you fail to repay the debt. They however can tell you in a neutral tone that you may face court action or your credit rating may be damaged in case you fail to settle the debt. Common threats are: arrest, damaging your credit rating, repossession of the assets without actually intending to do so.
• Unless it is permitted by you, no debt collection agency or its representative can call you repeatedly at odd hours. You can only be contacted during from 8 AM to 9 PM only on the contact number given by you to the lender. This may not sound pleasant but it is certainly better than being interrupted from sleeping if they called you around 2 AM.
• The best debt settlement companies will help prevent collection agency from contacting you at your workplace, unless that is the only number provided by you.
• The use of offensive language with racial, abusive, insulting, or threatening undertones is an offense on the debt collection agency’s part. This is something that you can rightfully report about.
• Sending mails or letters that are presumably sent by the court.
• Levying charges for debt collection or miscellaneous charges which are not permitted by the law of the state is of course immoral and certainly illegal.
• Asking you to submit post-date checks, which the lender will use as security.
• Using false names or authoritative positions such as law representative for cajoling debt repayments out of you. lower my debt is a great advantage but you must know your rights.