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Debt collectors are regulated by numerous state and federal
laws in their debt collection activities. That's where Calton &
Calton can help. Most people know that debt collectors cannot abuse
them on the phone or in writing--what many people don't know is that they
have a lot of other legal rights, too.
For
example, a debt collector cannot call you at work if they know that it is
inconvenient for you or that your employer prohibits it. Debt
collectors cannot tell others about your debts, like your next door
neighbor or your co-worker. Debt collectors also must also pay a
license fee in the State of Alabama
if they are collecting the debts of others. These are just a few of
the numerous protections you have as a consumer. If a debt
collector violates your rights, our firm can help.
The
Federal Fair Debt Collections Practices Act ("FDCPA") As a
consumer, you are entitled to file a lawsuit against any debt collector
who violates your rights under the FDCPA. In short, the FDCPA
allows a consumer to recover their actual damages, statutory damages of
up to $1,000 and their attorney's fees and costs. While this may
seem like a modest amount, to debt collectors who violate the law there
is much more at stake: Increased insurance rates, decreased collection
rates, potential governmental regulatory action, and the spiraling costs
of defending a lawsuit for their illegal conduct.
The
deck is stacked against consumers with sophisticated debt collection
tactics. As a consumer, you should not hesitate to shield yourself from
these heavy handed practices and exercise your rights under the FDCPA.
The FDCPA prohibits any collection efforts which violates any law.
That means that amongst other things, a collector must tell the
truth, be respectful to you, and cease communicating with you when you
have a lawyer.
Who
is Covered: Some Definitions
Consumer.
Any person who owes or is alleged to owe a consumer debt.
Debt
Collectors. According to the FDCPA, a debt collector is any person, other
than the creditor, who regularly collects debts owed to others and
includes attorneys who regularly collect debts.
How
a Debt Collector Can Communicate With You Communications Generally. A
debt collector may communicate with you by mail, in person, by telephone
or telegram. A debt collector cannot contact you at times or in places
that they know are inconvenient to you, such as at work if your employer
does not permit it or during daytime sleep hours if you work night
shifts. A debt collector cannot contact you before 8 a.m. or after 9 p.m.
Stopping
Communications. If you send a written request to a debt collector
demanding that they stop contacting you, the debt collector must stop
contact immediately, but they may send one last communication to you
advising you that they intend to take a specific action against you
including filing a lawsuit.
Attorney
Representation. If you are represented by an attorney concerning a
consumer debt (e.g., a consumer rights attorney such as our office, a
bankruptcy attorney, or a family attorney), the debt collector cannot
communicate directly with you except through your lawyer.
Contacting
Others. A debt collector cannot contact any third party about your debt.
This means that they cannot call you sister-in-law, your grandson, or
your neighbor about the debt. Debt collectors are not allowed to tell
anyone but you and your attorney that you owe anyone else money.
Locating
You. A debt collector has a right to contact other people once, and only
once, in an effort to locate you. Debt collectors are not permitted to
ask neighbors to bring you phone messages, ask you to come across the
street for a phone call, or tell other people that they are attempting to
collect a debt from you.
Debt
Validation
30-Day
Validation Notice Requirements. Within five days after you are first
contacted, a debt collector must send you a written notice telling you
the following:
The
amount of the debt.
The
name of the creditor to whom the debt is owed.
A
statement that unless you, within thirty days after receipt of the notice,
dispute the validity of the debt, or any portion of it, the debt will be
assumed to be valid by the debt collector.
A
statement that if you notify the debt collector in writing within the
thirty-day period that the debt, or any portion thereof, is disputed, the
debt collector will obtain verification of the debt or a copy of a
judgment against you and a copy of such verification or judgment will be
mailed to the consumer by the debt collector.
A
statement that, upon the consumer's written request within the thirty-day
period, the debt collector will provide the consumer with the name and
address of the original creditor, if different from the current creditor.
Finally,
a statement that the communication is from a debt collector attempting to
collect a debt and that any information obtained will be used for that
purpose.
Every
debt collector who tries to collect your debt must provide their own
30-day validation notice, even if a previous debt collector has already
given such notice.
Rights
While Debt Under Dispute. If you dispute a debt in writing within the
30-day validation period, a debt collector cannot continue to collect on
the debt until they have sent you proof of the debt or a copy of the
judgment.
What
a Debt Collector is Prohibited From Doing to You Collection Fees
Prohibited. A debt collector may not charge you an interest, fees,
or collection charges, except those amounts that were authorized by the
agreement with the creditor to whom the debt is owed.
Harassment
Prohibited. A debt collector may not use any language,
communication or conduct to harass, oppress, or abuse any person. This
includes prohibits on:
Use
threats of violence or harm to the person, property, or reputation.
Advertise
your debt or publish a list of consumers who refuse to pay their debts,
except to a credit bureaus.
Use
obscene or profane language.
Repeatedly
use the telephone to annoy someone or ring the telephone constantly.
Call
people without identifying themselves.
False
Statements Prohibited. A debt collector may not use any false
statements when trying to collect a debt. This includes:
Falsely
implying that they are an attorney or government representative.
Falsely
implying that you have committed a crime by not paying a debt.
Falsely
represent that they operate or work for a credit bureau.
Misrepresent
the character, amount, or legal status of the debt.
Indicate
that papers being sent are legal papers when they are not.
Indicate
that papers being sent are not legal papers when they are.
Threats
Prohibited. A debt collector may not use threats when trying to
collect a debt. This includes threats like the following:
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 the creditor intends to do so and they have the
right to do so.
Take
any actions against you which are illegal.
Violate
any law in an effort to collect a debt.
Deception
Prohibited. A debt collector may not use deception when trying to
collect a debt. This includes deceptions like the following:
Send
you anything that looks like an official document from a court or
government agency when it is not.
Give
false credit information about you to anyone.
Use
a fake or false name, unless that name is allowed by state law and
properly registered with the state, if required.
Unfairness
Prohibited. A debt collector may not treat you unfairly in
attempting to collect a debt. This includes unfairness like the
following:
Collect
any amount greater than your debt, unless allowed by law.
Deposit
a post-dated check more than 5 days before the date on the check, without
giving you notice of when they intend to deposit it.
Solicit
a post-dated in order threaten criminal prosecution or threaten to cash
the check early.
Make
you accept collect calls or pay for telegrams.
Take
or threaten to take your property unless this can be done legally,
including wrongfully repossessing your vehicle.
Contact
you by postcard.
Payments
on Multiple Debts. A debt collector must apply you payments on
multiple debts in the order you direct. A debt collector is prohibited
from applying any payments you send in to debts that you believe you do
not owe.
Your
Rights to Sue
Your
Right to Sue a Collector for Violations of the FDCPA.You have the right
to sue a debt collector within one year from the date you believe the law
was violated. If you do not bring you lawsuit within one year of the
violation, your claim may be forever barred by a statute of limitations.
If you win your lawsuit, you may recover money for the damage you
suffered, statutory damages of up to $1,000 plus court costs and your
attorney's fees.
In
order to preserve your rights under the law, it's important for you to
keep good records of all of the contacts.
Important
Steps You Can Take
Save
copies of all letters and notices from collection agencies
Save
all phone messages and voice mails- this is very important!
Make
note of your conversations with these bill collectors
Call
your consumer rights attorney to help you recover your damages
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