Consumer Rights Regarding Debt Collections

If you are being hounded by debt-collection agents, it is vital to learn what your consumer rights are concerning debt. The Fair Debt Collection Practices Act (FDCPA) of 1977 outlines what is and is not permissible behavior for debt collectors. Some debt collectors choose to ignore the limitations set forth by the FDCPA, and you have the right to seek legal action against them.

Harassment

The FDCPA prohibits collection agency harassment. Harassment includes but is not limited to: calling you repeatedly, calling at any time other than between the hours of 8 a.m. and 9 p.m. in your time zone, threatening you or your assets, and calling anyone other than you about your debt. You can send a collection agency a letter requesting that they not contact you via telephone, and they must comply.

Debt Validation

If debt collectors are contacting you, you are entitled to request a validation of the debt no matter how old it may be. In the event that a collection agency cannot provide paperwork proving that the debt was incurred by you, that they are authorized to collect the debt, and that they are licensed to collect in your state, they must cease collection activity and remove their tradeline from your credit report. The FDCPA gives them 30 days to investigate the debt during the validation period. They may not continue collection activity while investigating. A printout of what you owe is not a validation. Make sure to send all correspondence with a collection agency via certified mail in order to create a paper trail.

Statute of Limitations

Every state has a statute of limitations that defines the length of time a debt is legally enforceable. A debt beyond the time limit is known as a "time-barred debt." A collection agency cannot legally sue you for a time-barred debt, but that does not mean that these lawsuits do not occur. Check to see if your debt is too old to be enforceable as this will be a successful defense in court should the collection agency file a lawsuit. In the event that you are sued over a time-barred debt, you must show up in court. A judge has no way of knowing a debt is beyond the statute of limitations and not enforceable unless you are there to prove it.

Credit Reports

According to the Fair Credit Reporting Act, a debt can only remain on your credit report for a maximum of 7.5 years, or 7 years from the date the original creditor charged off the debt. This date is known as the "date of last activity." After that time has expired, the debt may not be reinserted onto your credit report. A collection agency is prohibited from changing the date of last activity on a debt in order to attempt to make the debt remain on your credit report for longer than the standard reporting period. Monitor your credit reports regularly to make sure that you do not have any re-aged or reinserted debts.

Disputes

You can dispute any debt you find on your credit report with the credit reporting agency that is currently reporting it. It is best to file disputes via mail in order to adequately submit documentation that will support your case to have the debt removed. If you requested a debt validation and did not receive one, this is grounds to request removal of a tradeline. The FCRA prohibits credit reporting agencies from reporting unvalidated debts.

References

• Fair Debt Collection Practices Act
• Fair Credit Reporting Act

Resources

• Fair Debt Collection Practices Act
• Fair Credit Reporting Act
• Statute of Limitations for Bad Debt by State