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What types of debt
collection
practices are prohibited?
Harassment. Debt collectors may not
harass, oppress, or abuse anyone. For example, debt collectors may not:
-
use threats of violence or harm against
the person, property, or reputation;
-
publish a list of consumers who refuse
to pay their debts (except to a credit bureau);
-
use obscene or profane language;
-
repeatedly use the telephone to annoy
someone;
-
telephone people without identifying
themselves;
-
advertise your debt.
False statements. Debt collectors may
not use any false statements when collecting a debt. For example, debt collectors
may not:
-
falsely imply that they are attorneys
or government representatives;
-
falsely imply that you have committed
a crime;
-
falsely represent that they operate
or work for a credit bureau;
-
misrepresent the amount of your debt;
-
misrepresent the involvement of an
attorney in collecting a debt;
-
indicate that papers being sent to
you are legal forms when they are not;
-
indicate that papers being sent to
you are not legal forms when they are.
Debt collectors also may not state
that:
-
you will be arrested if you do not
pay your debt;
-
they will seize, garnish, attach, or
sell your property or wages, unless the collection agency or creditor intends
to do so, and it is legal to do so;
-
actions, such as a lawsuit, will be
taken against you, which legally may not be taken, or which they do not intend
to take
Debt collectors may not:
-
give false credit information about
you to anyone;
-
send you anything that looks like an
official document from a court or government agency when it is not;
-
use a false name.
Unfair practices. Debt collectors may
not engage in unfair practices when they try to collect a debt. For example,
collectors may not:
-
collect any amount greater than your
debt, unless allowed by law;
-
deposit a post-dated check
prematurely;
-
make you accept collect calls or pay
for telegrams;
-
take or threaten to take your property
unless this can be done legally;
-
contact you by postcard.
What control do you
have
over payment of debts?
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.
What can you do if
you believe
a debt collector violated the law?
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 attorneys 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 collectors net worth, whichever is less.
Where can you report
a debt
collector for an alleged violation?
Report any problems you have with a
debt collector to your state Attorney Generals office and the Federal Trade
Commission. Many states have their own debt collection laws and the Attorney
Generals office in your area may help you determine your rights.
Click Here To See
How The
Federal Trade Commission Can
Help You
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