Fair Debt
Collection
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What is
the Fair Debt Collection
Practices Act?
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What
debts are covered?
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Who is a
debt collector?
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How may a
debt collector contact
you?
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Can you
stop a debt collector
from contacting you?
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May a
debt collector contact
any person other than
you concerning your
debt?
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What is
the debt collector
required to tell you
about the debt?
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May a
debt collector continue
to contact you if you
believe you do not owe
money?
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What
types of debt collection
practices are
prohibited?
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What
control do you have over
payment of debts?
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What can
you do if you believe a
debt collector violated
the law?
The Fair
Debt Collection Practices
Act requires that debt
collectors treat you fairly
by prohibiting certain
methods of debt collection.
Personal,
family, and household debts
are covered under the Act.
This includes money owed for
the purchase of an
automobile, for medical
care, or for charge
accounts.
A debt
collector is any person,
other than the creditor, who
regularly collects debts
owed to others. Under a 1986
amendment to the Fair Debt
Collection Practices Act,
this includes attorneys who
collect debts on a regular
basis.
A
collector may contact you in
person, by mail, telephone,
telegram, or FAX. However, a
debt collector may not
contact you at unreasonable
times or places, such as
before 8 a.m. or after 9
p.m., unless you agree. A
debt collector also may not
contact you at work if the
collector knows that your
employer disapproves.
You may
stop a collector from
contacting you by writing a
letter to the collection
agency telling them to stop.
Once the agency receives
your letter, they may not
contact you again except to
say there will be no further
contact. Another exception
is that the agency may
notify you if the debt
collector or creditor
intends to take some
specific action.
If you
have an attorney, the debt
collector may not contact
anyone other than your
attorney. If you do not
have an attorney, a
collector may contact other
people, but only to find out
where you live and work.
Collectors usually are
prohibited from contacting
such permissible third
parties more than one. In
most cases, the collector is
not permitted to tell anyone
other than you and your
attorney that you owe money.
Within
five days after you are
first contacted, the
collector must send you a
written notice telling you
the money you owe; the name
of the creditor to whom you
owe the money; and what
action to take if you
believe you do not owe the
money.
A
collector may not contact
you if, within 30 days after
you are first contacted, you
send the collection agency a
letter stating you do not
owe money. However, a
collector can renew
collection activities if you
are sent proof of the debt,
such as a copy of a bill for
the amount owed.
Harassment. Debt collectors
may not harass, oppress, or
abuse any person. For
example, debt collectors may
not falsely imply that they
are attorneys or government
representatives, falsely
imply that you have
committed a crime, falsely
represent that they operate
or work for a credit bureau,
misrepresent the amount of
your debt, misrepresent the
involvement of an attorney
in collecting a debt,
indicate that papers being
sent to you are legal forms
when they are not or
indicate that papers being
sent to you are not legal
forms when they are. Debt
collectors also may not
state that you will be
arrested if you do not pay
your debt or they will
seize, garnish, attach, or
sell your property or wages,
unless the collection agency
or credit intends to do so,
and it is legal to do so
(garnishment is currently
prohibited in South Carolina
for the collection of most
debts) actions, such as a
lawsuit, will be taken
against you, which legally
may not be taken, or which
they do not intend to take.
Debt collectors may not give
false credit information
about you to anyone, send
you anything that looks like
an official document from a
court or government agency
when it is not or use a
false name. Unfair
practices. Debt collectors
may not engage in unfair
practices in attempting to
collect a debt. For
example, collectors may not
collect any amount greater
than your debt, unless
allowed by law, deposit a
post-dated check
prematurely, make you accept
collect calls or pay for
telegrams, take or threaten
to take your property unless
this can be done legally or
contact you by postcard.
If you owe
more than one debt, any
payment you make must be
applied to the debt you
indicate. A debt collector
may not apply a payment to
any debt you believe you do
not owe.
You have
the right to sue a collector
in a state or federal court
within one year from the
date you believe the law was
violated. If your win, you
may recover money for the
damages you suffered. Court
costs and attorney's fees
also can be recovered. A
group of people also may sue
a debt collector and recover
money for damages up to
$500,000, or one percent of
the collector's net worth,
whichever is less.
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