Rob Harrer

There is an increasingly growing concern among the population about the potential abuses going on in the credit card industry. While many people think that they are being sent into financial instability by taking on credit card loans, it has become more necessary than ever to ensure that the public is informed of their rights and how well they can steer clear of debts using the best practices of handling a credit card, you can do so by seeing a consumer attorney.

With the growing concerns surrounding the credit card industry, Congress has been moved to pass the Credit Card Accountability Responsibility and Disclosure Act of 2009. Also known as the Credit CARD Act, once passed it brought about a new wave of fresh rules which guide the credit card industry and provide an umbrella of protection to credit card users and applicants.

What is The Credit CARD Act and What Protection does it Offer to Applicants and Holders?

The Credit CARD Act was passed to check the growing concerns in the credit card industry. Simply put, the Act was passed into law as a means of protection for applicants and holders while also ensuring that companies offering credit cards are held accountable and transparent.

Under the Credit CARD Act, consumers who are shopping for new credit cards and existing credit card holders are given some protections which were not clear, or non-existent in the past. The key changes brought on by the Act include protection for cardholders for the interest charged on loans and also the credit card fees charged by companies issuing the cards.

In addition, the Credit CARD Act offers some form of protection to card owners from an increase in interest rates and many other benefits.

Below is a summary of some of the benefits offered by the Credit CARD Act

Annual Percentage Rate (APR) Increases

Under the Credit CARD Act, credit card companies and issuers are not permitted by law to increase the Annual Percentage Rate on the existing balances within a year of opening an account. However, such increases may be made in the event any of these four exceptions:

1. A bank notified the account holder that the APR would increase before the account was opened.
2. The APR increase came about due to an “index” change beyond the control of the credit card issuer.
3. The APR is increased due to the failure of the cardholder to maintain and abide by the workout arrangement which had been made between the cardholder and the credit card company. Workouts are mostly issued to cardholders who are faced with certain financial challenges which have made them unable to meet their earlier debt repayment agreements.
4. APR may also be increased when the credit card holder has failed to make the required minimum payment to service their loans in a period of sixty days.

After a period of one year from the time that the credit card was issued, the credit card company can proceed to raise the APR on the account. The increase, however, will only apply to new transactions that are being made on the credit card account and not on the existing transactions whose interest rates had earlier been agreed upon by the creditor and the cardholder.

Notice of Disclosure Requirement

The Credit CARD Act also ensured that issuers have to remain transparent with cardholders by implementing new notice requirements. The Credit CARD Act also incorporated some new important disclosures which include:

1. Notice in advance of cogent changes and an increase in rates — under the Credit CARD Act. Credit card issuers are now compelled to give cardholders no less than 45 days of notice, informing them of the changes in the Annual Percentage Rate or other important changes that can affect the terms of the existing financial relationship between the lender and the consumer.
2. Credit card companies must include a notice of the right to cancel in the event of agreement changes — This means that credit card companies have to give cardholders a chance to make the decision to cancel their credit cards in the event the changes to the agreement are not considered to be favorable enough. The Act allows for credit card companies to give cardholders a period of 45 days wherein they can cancel their cards and agreement should they be uncomfortable with the new agreements stated in the notice that has been dispatched. In the event a consumer chooses to cancel their card, this cannot be regarded as a default on the part of the consumer. Also, the credit card company under the Act cannot force the cardholder to pay all of the money owed in debt at the time of cancellation.
3. Transparency on total time for debt servicing — the Credit CARD Act also allows consumers to stay updated on the total required time for them to repay a debt owed to the credit card company. This means that the credit card company must show the amount a consumer is required to pay monthly to offset the balance in thirty-six months. The statement is also expected to contain both the payment and interest. By extension, the statement must also inform consumers about the consequences of making a minimum required payment to service their loans.
4. Disclosing due dates and fees — credit card companies are required to be transparent about the due dates of the next payments thus keeping consumers informed on the next time they are expected to make payments to service their loans.
5. Notification of Penalty APR — credit card companies are also expected to inform consumers on penalties, such as increased APR in the event such a consumer fails to make payment as at when due.
6. Disclosure of interest and principal paid — the statements issued by the credit card company should also contain information on the interest and/or principal that have been paid for by the cardholder.

Late Payments

The Credit CARD Act also established some fine print for credit card companies and consumers, especially in the event of late payments. Providing increased protection for consumers, the Act allows consumers to receive statements on a monthly basis and the rules hold that payments cannot be deemed to be late if the statement has not been mailed and delivered to the consumer 21 days before the next payment’s due date.

Payment Handling

The Act compels credit card companies to follow certain rules, especially regarding how account payment is handled. Perhaps the most notable and important change as regards how payment is being handled applies to customers with multiple Annual Percentage Rates (APRs).

Credit card companies are now required to allocate payments first towards servicing debts with the highest APR. This prevents the company from servicing debts with lower APR while accrued interest on the debts with higher APR grows.

In addition, the Act now prohibits double-cycle billing.

Universal Default

Creditors can no longer raise the interest rate of consumers based on the reports which they have obtained from other creditors. This cut back allows debtors to get a better interest rate without the influence of their past financial decisions.

Debtors who are unable to pay off their debts are frequently faced with phone calls and demanding letters from their creditors who seek repayment of the loans they have defaulted on. In most cases, these phone calls and demand letters create undue pressure on the consumer and may cause them to make decisions like filing for bankruptcy at that point you should probably contact a bankruptcy lawyer. Bankruptcy allows consumers to get rid of their debts but this poses some long term risks to consumers.

In most cases, creditors would love to keep customers as paying members. However, filing for bankruptcy can significantly affect the credit rating and credit score of the customer thus posing a threat to both parties, especially the consumer whose ability to purchase items in the future will significantly be lowered.

Before choosing bankruptcy, debtors are more often than not, advised to consider other options. This includes loan workouts which ensure that an agreement can be reached with creditors on a modified repayment plan that will be favorable to both parties.

As a debtor, there are several options you can explore to work out your debts aside from bankruptcy. This article has been put together to give you an insight into how to better manage your debts using less drastic alternatives.

Repayment Options

When as a consumer you are late on your payments, several factors can come into play. In most cases, the creditor who is interested in recouping his or her money may proceed to send collection agents after you. Collection agents in most cases will explore every possible avenue to ensure that the owed amount is repaid. The action of the collection agent may ultimately frustrate you into exploring options to deal with the accrued debt. While most people are familiar with filing for bankruptcy, other options like repayment options are less drastic and can be tailored to offer you a better chance at maintaining your finances while reaching a favorable agreement with the creditor.

In the event of repayment options, a debtor can simply approach the creditor to renegotiate the terms of payment. That is, a debtor will seek to pay a lower amount of money for an extended time frame. Such agreements may be readily agreed to by the creditor as this goes a long way to prove that the debtor is willing to make repayments to offset their loan debt.

Credit Counseling Organizations

Of course, when you accrue debt either on purchases or other items, you should consider paying the bills when due. However, life can be unpredictable and you may find yourself unable to service the loan which you felt comfortable taking on earlier. A creditor in most cases does not care about the curveball or the bad hand life has dealt you, instead, the creditor is more interested in having his or her money when it is due.

When payments become late, creditors choose several options to get back their money from you. If you are in a bad situation such as this, there is a need to consider all the possible options that can get you out of this mess, one of which is a credit counseling organization.

Meeting with a consumer credit counselor means seeking help on how best to repay the loan which you have taken out. A consumer credit counselor can work with you to arrive at a favorable repayment plan. However, when choosing a consumer credit counselor, it is recommended that you be on the lookout for trustworthy counselors as most people prey on unsuspecting debtors by promising them a clean slate for a flat fee or an upfront charge.

The consumer credit counselor is expected to meet with the creditor to present them with a reworked repayment plan (involving lower payments for an extended time, lower interest rates, or lower fees) which are expected to be favorable to you and also guarantee that the creditor can get the money due to them eventually.

Be on the lookout for consumer credit counselors who make outrageous and bogus promises. In most cases, they may end up leaving you in worse shape than you were in before contacting them. Should you choose to work with a consumer credit counselor, be sure to choose one who has a track record of success in helping people get out of financially bad situations.

Workouts

In most cases, a loan workout is one of the best options to choose, especially when you are financially incapable of paying your loans on time. Granted, taking a loan out, whether credit card loans, debit card loans or others can be tricky. However, failure to pay when due can be trickier.

When considering your options, you may want to consider a mutually negotiated modification to the loan terms, a process which is known generally as a loan workout.

A loan workout is a great option for most people because it allows them to live their life while enjoying less stringent conditions to meet their loan payments. Also, a loan workout is a less drastic choice to make, especially in the face of filing for bankruptcy.

The loan workout, that is, the agreement that has been worked out between the creditor and the debtor for the repayment of the loan can be negotiated without the harassment of debt collectors. Simply put, it is easier to maintain and service loans using this method.

In some cases, loan workouts may also be referred to as extension or loan composition.

A composition is a contract that is entered into by two or more creditors and a debtor to take partial payments of the loans which are owed in full satisfaction of their claims.

An extension of the contract, however, is entered into by a debtor and more than one creditor. The creditors, in this case, agree to extend the recollection time for the payment of the loan that is owed.

In some cases, an agreement may come in the form of both an extension and a composition. An agreement may even allow the debtor to pay a lesser amount over a longer period of time.

By choosing either of these means of dealing with unpaid loans, debtors stand a better chance of dealing with the stigma associated with filing for bankruptcy.

An old debt collection scam is back. You need to know about it if you earn a regular paycheck, because you could be a victim. Here’s how the scam works.

A debt buying company purchases a defaulted debt from a bank. The buyer then sues the debtor without notification and falsely states the lawsuit was properly served. When the debtor fails to appear in court, a default judgment is entered, and the debt buyer may start garnishing wages.

HERE’S WHAT CAN HAPPEN

When Esther Roman, a Brooklyn grandmother, noticed a 10% reduction in her weekly paycheck last year, she was told her wages were being garnished because she had failed to appear in court when she was sued for a credit card debt. But Ms. Roman had never been served with a lawsuit.

“I couldn’t sleep,” Ms. Roman told reporters. “I was desperate.”

A process server had delivered the legal papers to the wrong address and falsely stated they were accepted by a family member. With an attorney’s help, Ms. Roman was able to prove the process server filed a false affidavit. She never lived at the address where the papers were delivered.

If a debt buying company garnishes your wages, you need to be sure that you’re not being scammed. If you are named as a defendant in a debt collection lawsuit, and if the papers are properly served, you still have legal options, and good legal help is available in the Chicago area.

HOW DO DEBT BUYERS OPERATE?

A debt buyer is a business, usually a collection agency or a law firm, that buys large numbers of charged-off or delinquent debts from a creditor or lender for about 4 cents on the dollar. Debt buying companies profit even by collecting only a small percentage of those debts.

When a debt buyer purchases a debt, it can sue the borrower – or it can scam the borrower. However, most borrowers who are sued are properly served the legal papers for the lawsuit but unfortunately 90% don’t show up in court and have a default judgment entered against them, that means they automatically lose.

Some debt buyers file a lot of lawsuits. The National Collegiate Student Loan Trust, Portfolio Recovery Associates, Midland, and Cavalry, for example, are debt buyers that each file more than a hundred debt collection lawsuits every month in Cook County alone.

 

HOW CAN YOU DEFEND AGAINST A DEBT BUYER LAWSUIT?

Several defenses can be used to dispute a debt buyer’s legal claim on a debt. Your lawyer will know what defense is appropriate and most effective.

In civil law, an individual or a business must have legal “standing” to bring a lawsuit – that is, some type of direct legal interest in the case. In a debt collection lawsuit filed by a debt buyer, the debt buyer must have legal standing, meaning the right or ability to sue.

However, because borrowers sign no contract with a debt buying company, if the company sues a borrower for a debt, if challenged, it must prove that the original creditor assigned or sold the debt and that the debt buyer now owns the debt, which is called standing.

ONLY THE PARTY THAT OWNS A DEBT CAN SUE FOR IT

A debt buyer will claim that it lawfully purchased the debt and is the debt’s rightful owner, but when these cases go to court, many debt buyers are unable to support their claim with the right documents. They may not have the documents because they bought the debt on an “as is” basis.

Even if a debt buyer produces purportedly original documents, the court may not find those documents sufficient or acceptable. Usually their evidence is a single line of data that may include a name, address, phone number, an amount, the original creditor, and maybe a few other bits of information. This line of data came along with thousands, even hundreds of thousands of other accounts in a spreadsheet when the debt buyer supposedly bought the account.

WHEN CAN YOU SUE A DEBT BUYER?

Under the Fair Debt Collection Practices Act a consumer can sue a debt collector, or debt collection law firm, for unfair or deceptive acts.

These bad acts may be trying to collect more than what’s owed, when trying to collect, not telling a consumer their debt is outside the statute of limitations and they can’t be sued on it, failing to note an account as disputed on a credit report after it’s disputed, are just a few. In these instances, borrowers can actually sue a debt buyer and, if successful, receive damages and have the debt collector pay for the attorney fees. This is how the little guy gets into court against the debt collectors for breaking the law.

Debt purchasing companies buy tens or hundreds of thousands of debts every year, and they rely on most borrowers not fighting back. However, because of the way debts are purchased, borrowers and their attorneys can fight back – and frequently prevail – against debt buyer lawsuits.

IS THERE A STATUTE OF LIMITATIONS ON DEBT BUYER LAWSUITS?

In civil law, the statute of limitations is the amount of time that someone has to file a lawsuit. Different types of debt lawsuits may have different statutes of limitations. In Illinois, the statute of limitations on debt ranges from five to ten years, depending on the details in the case. For credit card debts the statute of limitations is 5 years from the date of default.

If you are named as a defendant in a debt buyer lawsuit, one of the first things your attorney will determine is the statute of limitations in the case. A debt buyer may not know when you last made a payment or when the statute of limitation period begins on your debt.

If your debt collection defense attorney is able to prove that the statute of limitations has expired, the court should dismiss the debt buyer’s lawsuit against you. Suing a consumer outside the statute of limitations is also a Fair Credit Reporting Act violation and they can now sue the debt collector.

Even if a debt buyer sues you, has all of the necessary documents, and the statute of limitations has not expired, a skilled collection defense attorney may often be able to get your case dismissed.

AVOID A DEFAULT JUDGMENT WITH THE RIGHT ATTORNEY’S HELP

If a debt buyer sues you, you must respond to the lawsuit and appear in court. If you don’t, a default judgment will probably be entered against you, and that gives the debt buyer the right to garnish your wages, freeze your bank accounts, or place a lien on your home or other property.

Here’s a much better option: Let a debt collection defense attorney review the case and develop an effective defense strategy on your behalf. Your attorney will explain your rights and will aggressively challenge the debt buyer’s right to sue and litigate the case through trial if necessary.

If you are named as a defendant in a debt collection lawsuit, exercise your rights and defend yourself with an attorney experienced not only in defending collection cases, but also with a proven record of suing debt collectors. A good lawyer’s help is everyone’s right.

Getting into a financial mess can be stressful. One thing is true for financial hardships, it has a way of telling on every aspect of your life. Whether you are in a bad financial place as a result of service bills that are past due, or you are drowning in credit card debt, it is only a matter of time before the creditors start to demand payment and you will need to see a consumer lawyer.

First the occasional phone calls, then the more frequent attempts by the debt collection officers. All these can put you under a significant amount of stress. In several cases, personal bankruptcies have been linked to the activities of debt collectors and other cases, debt collection efforts may lead to job loss, marital instabilities, and invasion of privacy.

While the persistence of debt collectors seeking repayment of loans is legal, the harassment which you may suffer as a result of their actions isn’t. Because the Federal Trade Commission frowns heavily upon harassment as part of the debt collection practice, more debt collection officers obey the law. However, even with the most law-abiding debt collection officer, you may experience some form of harassment and in cases like this, you may be able to seek help from the law.

Seeking Redress Under The Fair Debt Collection Practice Act

The Federal Trade Commission will not support the harassment of a debtor by a debt collection officer. To further enforce this stand, the Fair Debt Collection Practice Act (FDCPA) was created. The Act was created with the purpose of enforcing the stand of the law against harassment during the debt collection and recovery process.

The Fair Debt Collector Practice Act prohibits debt collection officers staffed by a third-party collection agency from carrying out activities that can be considered or regarded as harassment. However, the provisions of this act do not cover the acts which are perpetrated by the employees of the original creditors.

While the Act does not extend across to the employees of the creditor but only to third party agencies in most states, California has put in place laws that dictate what the original creditors can or cannot do.

Before seeking legal help on harassment cases during debt collection attempts, it is recommended that you should first consult with the laws in your state.

What Debt Collectors Are Required To Do According To The Act

Under the Fair Debt Collection Practice Act (FDCPA), debt collectors are required to:

• Clearly identify themselves and the entity they represent during communication with debtors.
• Inform the consumer or debtor of their intent which is regarding the debts owed. Also, the collection officers are required to state that any information that has been obtained during communication can be used against the debtor or consumer.
• Provide the consumer with the address and name of the creditor.
• Inform the consumer of their rights to file a dispute to discredit the debt. A debtor who wishes to dispute is required to provide a notice of dispute within 5 days of interaction between the collection officer and the customer. The creditor will also be required to report disputed debts of any kind to the credit bureau. Consumers may proceed to verbally dispute the debt after 30 days but doing this means the consumer has consented to the waiver of their consumer’s right to demand the debt collector present a verification of what is owed. When verifying, the document should contain details like the address and name of the original creditor and the amount owed.
• The debt collector may have grounds for a proper lawsuit and in such cases like this, he or she is advised to file the lawsuit in a proper venue. Lawsuits may only be filed in the location of the consumer or where the debtor had signed an agreement with the debt collector.

What Debt Collectors Are Prohibited From

According to the Fair Debt Collection Practice Act (FDCPA), debt collectors are prohibited from engaging in the following acts:

• Calling the consumer at an unreasonable hour. The FDCPA stipulates that debt collection calls can be placed within 8:00 AM and 9:00 PM in the consumer’s local timezone.
• Failure to desist communication after a formal request has been entered is also frowned upon by the FDCPA. The debt collector is expected to halt his or her efforts at recovering the debt owed once a formal letter or notice indicating that the consumer is refusing to service the debt or a letter that requests that all communications be ceased has been forwarded. Following such a letter or notice from the consumer, the debt collector is only allowed to communicate the termination of the debt collection efforts while indicating that the debt collector is pursuing other channels to seek redress of the matter.
• Repeat and continuous calls being placed by the debt collector to the consumer are also prohibited as such actions are aimed at abusing, annoying, and harassing the consumer all of which are prohibited.
• Further communication with the consumer after they have filed for bankruptcy is also frowned upon by the FDCPA. Once the debt collector has been notified of the consumer’s file for bankruptcy, they are expected to cease all contact with the consumer.
• Debt collectors may not approach consumers at their workplace as in most cases such an act is prohibited by most employers. Once a debt collection officer has been advised against this act, he or she may not continue to communicate or approach the consumer in such an establishment.
• A debt collector is also prohibited from further communication with a consumer after he or she may have secured the services of an attorney. When the debt collector becomes aware of the attorney’s services, all contacts with the consumer should cease.
• Debt collectors are also prohibited from further communication with consumers after he or she has requested for validation.
• A debt collector is prohibited from misrepresenting, misleading or deceiving the consumer into the payment of the debt owed.
• A debt collector is also prohibited from threatening the consumer with arrests or legal actions.
• Debt collectors are prohibited from using profane or abusive language
• A debt collection officer may not communicate the details of the consumer with third parties except the consumer’s attorneys and spouse.
• A debt collection officer may not contact or communicate with the consumer using media that may constitute an embarrassment to their person.

Steps After You Have Been Harassed by a Debt Collector

If you have been harassed by a debt collector, the first line of action is to send a letter to the debt collector informing them to cease further contact and harassment. As contained in the FDCPA, the debt collector is expected to honor this request and desist from contacting you. However, it is important to note that unless you wish to dispute the claim or file for bankruptcy, the situation will only grow worse.

In the time being, you can choose to record all the harassment you suffer following the letter. To establish proof of harassment, it is recommended that you have a separate entity in attendance who can testify to witnessing you get harassed by the collection officers. You may also record all telephone discussions with the collection officer without informing them of your actions.

After gathering the needed evidence, file a complaint which is to be submitted to the Federal Trade Commission and be sure to include your complaints and other details including the name of the collection agency, address, the name of the original creditor, details of communications, types of communications and others.

I know it’s scary being on the receiving end of a lawsuit, I’ve been there.

When you are served by the sheriff or process server there should be 2 documents:

• Summons (instructions on what to do next)
• Complaint (the lawsuit)

The Summons has what looks like a court hearing date, called an Appearance Date or a Return Date, but it’s a deadline, not a court date. Below are a few helpful Appearance Date facts:

• Most people think it’s a court date (it’s not)
• Appearance Date is the same thing as a Return Date
• Appearance Date is a deadline to file a form called an Appearance with the clerk of court
• When you or an attorney files an Appearance they can also file a Jury Demand. At CCLC we always file jury demands.
• An Appearance Fee is required to file an Appearance unless you qualify for a fee waiver
• The Appearance basically tells the judge “Hey, I’m here, don’t enter a default judgment against me!”

*A default judgment is when you don’t file an Appearance on time and the collector or creditor suing you automatically wins. Keep an eye out for a blog post later this subject and options.

Filing an Appearance and Jury Demand properly and on or BEFORE the Appearance Date is VERY IMPORTANT, it will determine the course of your case. Once the Appearance and Jury Demand is on file you can avoid a default judgment for now.

 

Here at Chicago Consumer Law Center we focus on two things, suing debt collectors and defending collection lawsuits. If you want to know what we can do for you, give us a call at 312-858-3240.

Almost everyone has been hassled by a debt collector. Nearly one in three consumers surveyed in the U.S. say they were contacted by at least one creditor or debt collector in the last year alone unlawful debt collection activities and your legal rights.

Some people receive hostile phone calls, get calls at work or late at night or early in the morning. Sometimes debt collectors call their friends or family. People have been screamed at and threatened by debt collectors. If you are a target for this kind of harassment, how can you make it stop? unlawful debt collection activities and your legal rights

The Fair Debt Collection Practices Act (FDCPA) is a federal law that forbids certain debt collection tactics. Below, we’ll explain what debt collectors are and are not allowed to do under the law. You’ll also learn about the FDCPA attorneys who can help you stop the harassment.

THE FDCPA APPLIES ONLY TO DEBT COLLECTORS

The law defines a “debt collector” as a person or a business that collects debts on behalf of other parties or whose primary purpose is collecting debts owed to another.

The FDCPA applies exclusively to actual, full-time debt collectors – not to “original” creditors who are attempting to collect their own debts, unless the original creditor is trying to collect that debt under another name.

Debt buyers – businesses that buy debts and either resell or attempt to collect those debts – are also subject to the FDCPA if the debt buyer’s principal business activity is debt collection.

What many people don’t know is that debt collection law firms are also considered debt collectors under the FDCPA.

HOW ARE DEBT COLLECTORS RESTRICTED BY LAW?

The federal FDCPA prohibits debt collectors from engaging in a variety of deceptive and abusive tactics. Collection agencies, for example, may not communicate with third parties regarding your debt, except for:

1. the original creditor
2. a credit reporting agency
3. your spouse, your parents if you’re under 18, and any co-debtors
4. an attorney that represents you

WHEN IS IT ILLEGAL FOR A DEBT COLLECTOR TO CONTACT YOU?

When a debt collector learns that you’re represented by an attorney for the debt, the debt collector may no longer contact you and must deal exclusively with your attorney instead.

The only other exception to the FDCPA ban on third-party contacts is for the exclusive purpose of determining your whereabouts. When contacting third parties regarding your location, debt collectors:

1. must give their names and state that they are seeking details about your whereabouts
2. cannot say that you owe a debt
3. cannot send you a postcard or indicate on an envelope that they are collecting a debt

Additionally, debt collectors are forbidden to contact any third party more than once unless they:

1. have been asked to by that party
2. believe and have evidence that they received inaccurate information from that party

HOW MAY A DEBT COLLECTOR CONTACT YOU LEGALLY?

When a debt collector first contacts you, that collector must inform you that a debt collection effort is being made and that any details you provide – anything you say – will be used to collect the debt. The Fair Debt Collection Practices Act prevents a debt collector from contacting you:

1. at an inconvenient or unusual place or time, which generally means before 8 a.m. and after 9 p.m. (although if you work nights, a call at noon may also inconvenience you)
2. if the debt collector knows that an attorney is representing you
3. at your job if the debt collector knows that your workplace forbids receiving such calls at work, or you told the debt collector not to call you at work

WHAT OTHER COLLECTION PRACTICES ARE ILLEGAL?

Generally speaking, a debt collector cannot engage in practices that abuse, harass, or oppress consumers, including the use or threat of violence against you, someone else, your property or reputation, or someone else’s property or reputation.

A debt collector cannot use abusive or obscene language; may not advertise that your debt is for sale or publicize your name in print or online as someone who does not pay debts; may not call you repetitively; and may not call you and fail or refuse to identify themselves as a debt collector. FDCPA attorneys represent the victims of these illegal practices.

You do not have to tolerate harassment. If a debt collector threatens you on the phone or uses abusive language, hang up.

Debt collectors are still allowed to send you emails and text messages. The Fair Debt Collection Practices Act was written forty years ago and doesn’t directly address digital communications.

Congress and the federal Consumer Financial Protection Bureau are currently considering how the law should deal with emails and text messages sent by debt collectors.

WHEN DEBT COLLECTORS MAKE FALSE CLAIMS

The FDCPA also makes it illegal for a debt collector to lie in order to collect debts or information about you. Specifically, unlawful debt collection activities and your legal rights may not:

1. try to collect more than you owe, or report a different amount on your credit report
2. fail to note as “disputed” on your credit report if you tell them you don’t owe the amount they’re trying to collect
3. say that they are with law enforcement or suggest a connection to the federal, state, or local government (except for child support collectors who really are state employees)
4. falsely represent how much you owe
5. claim to be a lawyer or representing a lawyer, or send you something that appears to be from a court or a lawyer
6. falsely allege that you have broken the law or claim that you will be jailed or that your assets will be seized
7. threaten to take any action, legal or illegal, that will not or cannot happen
8. use a phony company name or claim to work for a credit bureau, unless the collection agency and credit bureau are part of the same business

WHAT ELSE SHOULD YOU KNOW ABOUT DEBT COLLECTION TACTICS?

The FDCPA also prevents debt collectors and collection agencies from using these unfair debt collection tactics:

1. adding interest, charges, or fees that are not authorized by the initial agreement or by state law
2. accepting a check postdated more than five days, unless you are notified three to ten days prior to depositing the check
3. depositing a postdated check before the check’s date

IF YOU ARE HARASSED BY A DEBT COLLECTOR

When a debt collector has violated your rights under the FDCPA, you can sue for damages. You can always learn more about consumer protection laws and your rights by speaking to an experienced FDCPA attorney.