How The FDCPA Stops Debt Harassment

By: N. Messe Click author's name for more of his/her articles

Financially, 2009 has been difficult for everyone, particularly for people who pay their debts and taxes regularly. But sometimes things just don't go as planned. Many people have lost their jobs due to the recession, and without a regularly paying job it has become increasingly difficult to pay bills on time and keep creditors at bay. This is especially true if you have a mortgage loan or credit card debt.

Once overdue, credit extending companies usually forward such cases to collection agencies, who can easily dig up your personal details and start their campaign to make you pay up. This is where your troubles expand and debt collection harassment begins.

It would be pretty straightforward if debt collection agencies would follow the protocols laid down by the government. While many companies do behave, there are those who do not. Instead, bill collectors often resort to unscrupulous activities to recover debts. According to 2009 annual report of Federal Trade Commission, a total of 92,000 complaints were filed against debt collection agencies under various categories.

These unscrupulous methods include, demanding larger payment than legally permissible, telephone harassment, verbal threats, calling consumers at their place of their employment, discussing debt with third parties, failure to provide written verification of disputed debt, and continuing to contact a consumer after receiving notice of cease contact. People who had filed complaints with FTC were aware of what to do in these cases, but would you know where to turn?

Keeping this in mind, the FTC has instituted the Fair Debt Collection Practices Act, FDCPA, to protect unsuspecting consumers and provide them with legal protection. Under this act, the consumer or the victim of unfair debt collection practices can file a complaint with FTC if any of the following rules are breached.

The debt collection agency cannot call you outside the hours of 8 AM to 9 PM local time and must not resort to repetitive or incessant calls during this time period. If you send a written letter to the collection agency requesting that they cease communication with you and they fail to comply, then this is a violation.

They cannot contact you at your place of employment if you request them not to, and they can't discuss your situation with your employer or other third parties. If you ask for proof of the debt and other pertinent details, they must comply. When you receive documentation make sure that there haven't been unjustified charges added to the grand total.

Collection agencies must identify themselves, never use abusive or profane language, or threaten you with legal consequences or arrest. They are not permitted to humiliate you publicly by printing details of your debt status on correspondence or published lists.

In case you are being mistreated by any of the debt collection agencies, you can sue them as well as the company you owe money to. However, this process is lengthy and requires some amount of regulatory knowledge to file and win the case. This is where a fair debt lawyer comes in. They will evaluate your case and be your guide through the courts, and in the end bring compensation and peace to your life.

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About The Author: Nick Messe is president of The Lead Frog LLC. Learn more about the Fair Debt Collection Practices Act - FDCPA - and how it protects you from debt harassment. Visit FairDebtHelpers.com for a free evaluation of your case by an experienced fair debt attorney.