The increased number of complains to the Federal Trade Commission (FTC) about unfair collection means by the debt collection agencies has been very alarming. As a result, The FTC, the nations’ consumer protection agency, has enforced the Fair Debt Collection Practices Act (FDCPA), which restricts the debt collection agencies from practicing unfair means to collect debt.
Prohibitions levied on collection agencies
The following are a few prohibitions that are levied on these collection agencies:
1. The FDCPA prohibits the debt collection agencies from calling you at inconvenient times (before 8 in the morning and after 9 at night) and places.
2. The collection agencies can’t harass or abuse you by using threats of violence, use obscene languages, etc.
3. The FDCPA also prohibits collection agencies from giving false statements like they’re attorneys, falsely represent that they work for a credit reporting bureau, etc.
4. The debt collection agencies are prohibited from using any unfair practices like threaten to take your property, deposit a post-dated check early, etc.
According to FDCPA, debt collection agencies should inform the debtors of their right to dispute the debt if he is wrongly contacted. The Act states that if it’s proved that a consumer has been wrongly contacted; all communication from the collection agency should stop immediately. But there are many collection agencies that ignore these consumer protection laws and continue harassing consumers.
Let’s check out the consumer rights that you should be aware of, if you’re harassed by debt collection agencies for a debt which you don’t owe.
Things to know if you’re contacted for debt you don’t owe
a) Know your rights: You should have a clear knowledge of your rights. Know how to recognize illegal collection practices. Read the FDCPA to have proper knowledge of consumer rights.
b) Get the collection agency’s details: Try to get the collection agency’s name, its address, a phone/fax number and the amount the collector claims you owe.
c) Send a certified letter: As soon as it’s clear that you’ve been wrongly contacted, make it clear to the debt collection agency. Tell them that you don’t owe the debt and don’t want to be contacted.
d) Seek help if ignored: If the collection agency ignore your letter and continue to call you, you can complain to your states’ attorney general office. They’ll certainly help you if they see pattern of abuses.
e) Check your credit reports: The collection agency can put an illegal debt on your credit report which will hamper your scores. If you see such a fraud, immediately dispute the case with the credit bureaus.
f) Consider lawsuit: It is within your right to file a lawsuit against debt collection agencies that violate FDCPA. If you represent your case efficiently, you’ll be able to recover damages suffered due to the violation.
Dealing with debt collection agencies can be one of the most stressful experiences. But if you have the knowledge of your rights and know how to handle them, you might be able to prevent them from harassing you.
