Federal Laws on Third Party Credit Card Debt Collectors
During the early 1970s and before, debt collectors would use every method at their disposal, even if it was, illegal, unethical and deceptive, to collect a debt. In 1977, Congress enacted the Fair Debt Collection Practices Act, (FDCPA), which is a law that governs the actions of third party debt collectors. Any third party debt collector must abide by these rules and regulations otherwise they could be subject to penalties, fines and lawsuits. Lawsuits have been filed in the past against debt collectors that don't obey these laws. You still find violations today.
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Calling Hours
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The Fair Debt Collection Practices Act states that debt collectors can only call your residence or place of employment between the hours of 8:00 a.m. and 9:00 p.m. The only time a debtor can be contacted outside of these hours is with permission from the debtor. Debt Collectors calling from a time zone other than where the debtor lives should be aware of these times. A lot of people receive calls at their place of employment from debt collectors, but if you tell them to discontinue calling you at your job they must comply with your request. You can make your request verbally or in writing.
Third Parties
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A third party debt collector is prohibited from contacting a third party, someone who has nothing to do with your debt, except to get information such as your current address and phone numbers for your residence and place of employment. They cannot discuss the fact that you have a debt or divulge any information about your debt. As far as contact is concerned, they can only contact third parties one time, unless they were lead to believe the third party has additional information regarding the location of the debtor.
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Abuse/Violence
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The federal law does not allow debt collectors to threaten you with physical harm or abuse you in any way. They are never allowed to use any language that could be considered obscene. Some debt collectors go beyond these boundaries to collect a debt, but debt collectors cannot continue to phone you until it becomes annoying or harassing.
Mispresentation
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Some third party debt collectors have given debtors the false impression that they represent an attorney's office or that they are calling from a government agency. These types of actions are strictly prohibited by the Fair Debt Collection Practices Act. Others have falsely claimed that you have committed a crime and will be arrested because you did not pay your debt. A debtor can be intimidated and confused if they don't understand all of the intricate details surrounding the FDCPA.
False Threats
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During a conversation with a consumer, a debt collector may threaten them with a bank levy, wage garnishment, judgment, legal action or the placement of a lien on their real estate property as ways to collect a debt. Debt collectors are prohibited from making any threats that they are not legally authorized to perform or that they have no intention of carrying out. If any of these regulations are violated, you can report a third party debt collector to the Federal Trade Commission or your Attorney General's Office.
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