Fair Debt Collection Practices

If you have debt which you have been unable to make payments on, you may have already begun to receive calls from creditors. These calls can be humiliating and stressful, especially if you are not able to repay what you owe. While creditors have a right to call you and ask for their money, there are rules that they must abide by. If they do not follow these guidelines, they are breaking the law.

The Fair Debt Collection Practices Act covers debt collection for mortgages, cars, personal loans, medical bills and credit cards. If you make payments late, then creditors or collection companies are allowed to call you over the phone to collect their debt. However, they must do so fairly and they must not cross certain lines.

Debt collectors are allowed to contact you by fax, phone, telegram or mail. They are only allowed to contact you between 8:00 a.m. and 9:00 p.m. Bill collectors may not call you at work if you tell them that your employer doesn’t allow you to receive such phone calls. If you do get a call at work from a creditor, calmly explain to them, at an opportune time, that this is unallowable.

Most people don’t realize that they can stop debt collectors from contacting them. Simply crafting and sending a letter to the collection agency requires them to stop. After doing so, they may write you a letter that acknowledges that they will no longer contact you. However, it is important to note, that this does not clear your debt, you will still owe your creditor’s the money that you borrowed. Your creditors can also sue you to collect what you owe.

Many people who have had experience with debt collectors or who have family or friends who have, may be familiar with the practice of creditors calling people other then the debtor to get information about him or her. This can be incredibly embarrassing and awkward. No one wants their financial troubles being shared with people close to them. However, there are also rules that govern this practice. Collectors can only contact your family or friends to ask where you live, your workplace contact information and your phone number. They also can only call each person one time. They can’t call and continually harass these individuals about your debt.

Your creditors or individuals or companies that collect debt on their behalf are allowed to contact you or your family and friends. However, there are guidelines which govern their behavior. These guidelines are known as the Fair Debt Collect Practices Act.   Collectors can only contact you between the hours of 8:00 am and 9:00 pm, unless you provide them with additional hours. They may not call you at work if they are aware that your employee doesn’t allow such calls. They may contact your family and friends but can only contact each person only one time and they can only ask you about what essentially amounts to contact information, for example, where you work, your phone number and your home address.

Be sure to know your rights when it comes to debt collection so that you can report any abuse. Debt collectors do not have the right to call you names, contact you at all times of the night, harass your family or friends or continually bother you at work.