If you have a loan, use credit cards (especially with balances), or have a mortgage for your home, you are considered a “debtor” and are affected by the Fair Debt Collection Practices Act (FDCPA).
Falling behind in paying what you agreed to when you either signed the credit card agreement or the paperwork for your loan, the company will start attempting to collect on the debt, and are called “debt collectors.”
Some companies will outsource the collection of debt to a third party, which are also called collection agencies. There are federal laws in place which regulates the practices and the collection tactics of debt collectors. In 1986, the Fair Debt Collection Practices Act was implemented.
It is important that you’re informed on your rights as a debtor when dealing with collectors. Any communication which you have with a collector, they must include “This is an effort to collect a debt, and any information obtained will be used for that purpose.” either in the letter they send you, or even when they communicate with you over the phone. It is important that you’re informed on your rights as a debtor when dealing with collectors. The Fair Debt Collection Practices Act requires collectors to:
- Identify themselves and notify you.
- Provide the name and address of the original creditor. They might have your previous address on file, but the mail was forwarded to your new address.
- Notify you of your right to dispute the debt. If you do not believe that this is your debt, you must dispute it within 30 days of receiving the initial letter from the collector.
- Provide verification of the debt. If you do not believe the debt is yours, in the dispute letter, you will need to request verification of the debt.
The Federal Trade Commission (FTC) provides a great frequently asked question guide(http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm) which goes into more details about the Fair Debt Collection Practices Act.
Local to metro Atlanta and have a question about the FDCPA? Stop harassing creditors by contacting Berry & Associates either online or by calling 404-235-3328 or 1-800-414-3328.
