Tennessee Debt Harassment Laws
Getting into debt is stressful. Being unable to get out of it can be worse. While creditors do have the right to pursue collection on what is owed to them, they are also bound by federal law on how far they can take their efforts before it becomes harassment. Tennessee follows the federal Fair Debt Collection Practices Act, which sets strict guidelines on what creditors can do to collect money from Tennessee debtors.
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Phone Contact Harassment
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It is typically considered harassment for a creditor to contact a Tennessee debtor outside of reasonable hours, which are typically between 8 a.m. and 9 p.m. Calling debtors before or after this time span can be considered harassment. In addition, creditors are prohibited from contacting debtors at the debtors' place of employment if the creditor has been made aware or is aware that such contact is prohibited by the employer.
Mail Contact Harassment
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Mail must be clearly marked as an attempt to collect on a debt. It cannot imply it is from an attorney, unless it is in fact sent from an attorney retained by the creditor. Threats of criminal action are expressly forbidden and are viewed as harassment. Creditors must cease contact with a debtor if the debtor sends a written request for contact to cease. The only exception is in the event the creditor plans to take action. In such cases the creditor can send one letter to the debtor advising the debtor of the planned action, such as a lawsuit.
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Legal Representation
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Once a creditor is informed that a debtor has retained legal counsel, the creditor is prohibited from contacting the debtor again. Any and all future communication must go through the debtor's attorney. Creditors are allowed to hire their own attorneys to approach debtors that are not represented by lawyers. The attorney must follow all debt collection laws in the attempt to collect from the debtor.
Punishments
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A debtor in Tennessee or elsewhere, who believes a creditor has harassed him or broken law can be filed a complaint with the Federal Trade Commission. The FTC regional office covers seven Southeastern states, including Tennessee. Complaints should be sent to Federal Trade Commission, Suite 1500, 225 Peachtree St. NE, Atlanta, GA 30303.
Debtors also have the right to file lawsuits against creditors they believe have violated collection laws. The suit must be filed within one year of the violation. There is a $1,000 damages cap for individuals and $5,000 cap for class action suits for each violation. The debtor can also recover attorney fees and court costs.
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References
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