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Background When you are involved
in a debt management program that does not make monthly payments to your
creditors it tends to irritate the bill collector assigned to your account.
While large credit institutions work with Debt Managers and believe that a
lump sum percentage settlement is better then nothing, a collector is still
assigned to your account. How often this collector calls you and disturbs
you is simply up to the collector. The one thing to remember about these
collectors is that they are paid largely on a commission basis. Yes, this
means that in order for them to get paid they have to collect money from
you. They are not bad people. They have jobs to do and are trying to make a
living just like you.
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| Can you stop a debt collector from contacting you? |
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You can
stop a collector from contacting you by writing a letter to the collection
agency telling them to stop. Once the agency receives your letter, they
may not contact you again except to say there will be no further contact.
The agency may notify you if the debt collector or the creditor intends to
take some specific action.
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| What types of debt collection practices are prohibited? |
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Harrassment: Debt Collectors may not harass or abuse you. For example, debt
collectors may not: 1.) Use threats of violence or harm against the person, property, or reputation; 2.) Publish a list of consumers who refuse to pay their debts (except to a credit bureau); 3.) Use obscene or profane language; 4.) Repeatedly use the telephone to annoy someone; 5.) Telephone people without identifying themselves; 6.) Advertise your debt. False Statements: Debt Collectors may not use any false statements when collecting debt. For example, debt collectors may not: 1.) Falsely imply that they are attorneys or government representatives; 2.) Falsely imply that you have committed a crime; 3.) Falsely represent that they operate or work for a credit bureau.
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| Where can you report a debt collector for an alleged violation? |
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Report
any problems you have with a debt collector to the office of your state attorney
general and the Federal Trade Commission. Many states have their
own debt collection laws and your state attorney general can help you
determine your rights.
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| What must the debt collector tell you about the debt? |
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Within
five days after you are first contacted, the collector must send you a
written notice telling you the amount of money you owe, the name of the
creditor to whom you owe the money, and what action to take if you believe
you do not owe the money.
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| Who is a debt collector? |
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A debt
collector is any person, other than the creditor, who regularly collects
debts owed to others. Under the 1986 Amendment to the Fair Debt Collection
Practices Act, this includes attorneys who collect debts on a regular
basis.
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| How may a debt collector contact you? |
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A debt
collector may contact you in person, by mail, telephone, telegram, or fax.
However, a debt collector may not contact you at unreasonable times or
places, such as before 8:00 a.m. or after 9:00 p.m., unless you agree. A
debt collector also may not contact you at work if the collector knows
that your employer disapproves.
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| May a debt collector continue to contact you if you believe that you DO NOT owe money? |
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A
collector may not contact you if, within 30 days after you are first
contacted, you send the collection agency a letter stating you do not owe
money. However, a collector can renew collection activities if you are
sent proof of the debt, such as a copy of a bill for the amount owed.
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| What debts are covered? |
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Your
personal, family, and household debts are covered under the act. This
includes money owed for purchase of an automobile, for medical care, or
for charge accounts.
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| What control do you have over payment of debts? |
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If you
owe more than one debt, any payment you make must be applied to the debt
you indicate. A debt collector may not apply a payment to any debt you
believe you do not owe.
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| What can you do if believe that a debt collector violated the law? |
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You have
the right to sue a collector in a state or federal court within one year
from the date you believe the law was violated. If you win, you may
recover money for the damages you suffered. Court costs and attorney's
fees also can be recovered. A group of people also may sue a debt
collector and recover money for damages up to $500,000 or one percent of
the collector's worth, whichever is less.
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| May a debt collector contact anyone else about your debt? |
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If you
have an attorney, the debt collector may not contact anyone other than
your attorney. If you do not have an attorney, a collector may contact
other people, but only to find out where you live and work. Collectors
usually are prohibited from contacting such permissible third parties more
than once. In most cases, the collector may not tell anyone other than you
and your attorney that you owe money.
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| Definitions and General Provisions: |
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If you
use credit cards, owe money on a personal loan, or are paying on a home
mortgage, you are a debtor. If you fall behind in repaying your creditors,
or an error is made on your accounts, you may be contacted by a debt
collector. You should know that in either situation, the Fair Debt
Collection Practices Act requires that debt collectors treat you fairly by
prohibiting certain methods of debt collection. Of course, the law does
not forgive any legitimate debt you owe. This section answers commonly
asked questions about your rights under the Fair Debt Collection Practices
Act. To see the full text of the Fair Debt Collection Practices Act,
click here.
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| Summary of Illegal Actions: |
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The
following actions are illegal: A debt collector calls you at work and knows that it is inconvenient or that your employer forbids it. A debt collector calls you before 8:00 a.m. or after 9:00 p.m. in your time zone. A debt collector makes an excessive number of phone calls to annoy or harass you. A debt collector knows that an attorney, whose contact information is known or is easy to locate, represents you and the debt collector continues to contact you. A debt collector tells a person other than you, your spouse, or your attorney that you owe money. (If you are a minor, the debt collector can tell your parents or guardians about the debt.) Debt collectors can only communicate with other people to obtain contact information about you. A debt collector misrepresents the amount, character, or legal status of a debt. A debt collector gives others credit information about you that is false, or should be known to be false. A debt collector fails to honor your dispute or cease communication rights. A debt collector threatens to take your property or garnish your wages when this action would not be legal or the debt collector does not actually intend to do it. Your property cannot be taken and your wages cannot be garnished without a court order (judgment). A debt collector uses, or threatens to use, violence or any other illegal means to harm you, your family, your reputation, or your property. A
debt collector uses profane or obscene language when communicating with you. A
debt collector claims to be an attorney or sends a letter made to look
like it is from an attorney (unless the debt collector really is an
attorney). |
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PFDC's Normal
Business Hours: |
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***Disclaimer*** |
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The information contained herein is provided for general information purposes only and is not intended to be a legal opinion nor legal advice nor is it intended to be complete information on the subject of the Fair Debt Collection Practices Act. |