FAIR DEBT COLLECTION PRACTICES ACT VIOLATIONS

Debt collectors know how to squeeze money out of people, usually by calling and calling at all hours of the day. There is no reason to put up with this behavior anymore. Scott J. Goldstein can protect your rights. For immediate relief, please contact our law firm today.

To Whom Does the Fair Debt Collection Practices Act Apply?

This law is a powerful tool for restraining some of the worst, most abusive behavior. Unfortunately, it doesn’t apply to all debt collectors. You should understand when it applies and when it doesn’t.

Consumers who don’t pay on a debt go into “default.” At this point, many banks, credit card companies, and other lenders will try to collect the debt using their in-house debt collection department. The lender employs these debt collectors and usually makes an initial attempt to get debtors to pay. The FDCPA does not cover these in-house collection departments.

However, at some point, most original lenders will either hire an out-of-house collection agency (third-party debt collectors) or sell the debt to them. They might also use a law firm for debt collection practices. The FDCPA applies to these outside collection agencies.

While the FDCPA can protect consumer rights, it doesn’t cover every type of debt. The FDCPA covers the third-party collection of personal debts. These debts include auto loans, credit card debt, mortgages, student loans, car loans, medical bills, and other household debts. However, the FDCPA doesn’t apply to debt for agricultural purposes, business debts, or collection efforts made by the original creditor.

What Collection Practices Are Prohibited?

The law places certain restraints on debt collectors. Some of the more important include:

No Unfair Calling Times

The law prohibits debt collectors from calling before 8:00 AM or after 9:00 PM. They also must adjust to your schedule, e.g., if you work at night and are asleep most of the morning and early afternoon. If you receive a call within those hours, it is essential to record the date, time, and conversation in case of any violations.

No Harassing Calls or Texts

A debt collector can’t repeatedly contact you in a harassing manner. A call every night is clearly against the law. Likewise, a debt collector can’t call you repeatedly at work. If your debt collector is calling and it’s an issue you don’t want to discuss in the workplace, you can instruct them to stop calling.

No Publicizing You Have a Debt

Debt collectors must protect your privacy. This means they can’t send postcards stating you have a debt or include language on the outside of an envelope to that effect. People might see these materials and realize you are in debt, so the law prevents this from happening.

No Contacting Third Parties

A debt collector can’t speak about your debt to a third party (other than an attorney). For example, collectors can’t talk to your boss or mom about the debt. They can, however, call to find out where you are.

No Contacting You if You Have an Attorney

Once you notify the debt collector you have a lawyer, the debt collector must speak with only your lawyer. They can’t still keep calling or stopping in to visit you. This is one reason to hire a lawyer.

No Misrepresentation

Debt collectors cannot misrepresent who they are. They can’t claim they are attorneys or that they work for a credit reporting company if they don’t. Instead, they must disclose their identity and avoid claiming to be affiliated with the government or a court.

No Lying

Those who collect debts can’t lie about the amount or say someone will commit a crime if they don’t pay their debt.

No Threats

Debt collectors cannot issue threats, like threatening to have you arrested or threatening physical violence. They also can’t use obscene language. These tactics are not only illegal but also highly damaging to a debtor’s mental and emotional well-being.

No Unfair Collection Practices

Debt collectors must follow procedures outlined in the FDCPA. This includes notifying you of your rights within five days after their first communication, identifying themselves as debt collectors, and providing verification if you request it.

But, even before debtors start talking to debt collection agencies, verifying these companies are legitimate is essential. For example, overly aggressive or abusive practices can suggest you’re dealing with a scammer. Taking the time to verify that can save debtors from paying debts they don’t owe. Providing personal or financial information before completing the verification is not advisable.

Some steps must be taken quickly if you confirm the debt collection agency is legitimate and receive a debt validation letter. First, it’s essential to check if your debt has surpassed the statute of limitations on debt. If that is the case, a creditor can’t sue you for it.

If the debt has not surpassed the statute of limitations, you may try to negotiate a debt settlement with your creditor.

Can You Stop a Debt Collector from Contacting You?

Yes. The FDCPA states that debt collectors must stop contacting you once you tell them to. You must send a written notice—requesting over the phone isn’t good enough. Ensure your letter includes a specific request for them to stop contacting you.

After you send this notice, a debt collector can contact you only one more time, usually to tell you they are stopping all contact and/or to explain what actions they are taking (such as filing a lawsuit). Although this letter will stop future contact, it doesn’t stop collection activity.

How Can Consumers Identify if a Debt Collector Is Violating the FDCPA?

Consumers have several ways to determine if a debt collector is engaging in Fair Debt Collection Practices Act violations. Understanding the Fair Debt Collection Practices Act (FDCPA) and the federal laws it enforces is crucial for anyone dealing with debt collectors. The FDCPA generally applies to third party debt collectors, who are hired to collect debts such as credit card debt, medical bills, or other household debts.

A primary sign of a debt collector violated the FDCPA is if they engage in abusive practices or use obscene or profane language during debt collector calls. The law limits debt collectors from using obscene language or false or misleading representations when attempting to collect debts. For example, a debt collection agency cannot falsely claim to be government representatives or that they have taken legal action in state or federal court when they haven’t. Additionally, debt collectors must not threaten criminal prosecution for past due debts.

Consumers should also be aware that the FDCPA prohibits debt collectors from calling before 8 AM or after 9 PM local time, contacting them at work if they are informed that their employer disapproves, or revealing personal or financial information to third party debt collectors without permission. Unfair debt collection practices also include using deceptive practices, such as pretending to be the original creditor or current creditor when they are not.

If a debt collector fails to provide written verification of the debt within a seven day period after the first contact, this is a potential violation of the FDCPA. Consumers should verify the legal status of their particular debt by asking for the debt collector’s address and business name to ensure they are dealing with a legitimate debt collection agency.

Consumers who suspect fdcpa violations should document all interactions with the debt collector and report the violation to the Federal Trade Commission or their state’s Attorney General. In cases of severe or repeated violations, the consumer may be entitled to civil liability or attorney’s fees under federal or state law.

Can You Sue for Violations of the FDCPA?

Yes. If a third-party debt collector violates the law, you can seek the following in a lawsuit:

• Attorney’s fees. This is a big help. Your lawyer can bring a suit against the debt collector, and you won’t need to pay their fees.
• Statutory damages. A debt collection agency might need to pay up to $1,000 for each violation. For example, a debt collector who calls 12 times before 8:00 AM could pay up to $12,000.
• Monetary losses. You might have spent money due to illegal collection efforts. For example, you might have paid a debt you didn’t owe. You can get that money back in a lawsuit.
• Other losses. Harassing and illegal collection activity can cause emotional distress or lost wages. You should seek compensation for these harms.

Meet with an attorney to review how much compensation you might receive. If you haven’t already requested that a debt collector stop calling, your attorney can also help with that request.

Should You Keep Records of Collection Activity?

Yes! This is particularly helpful if you must convince a judge that a collector is harassing you. We recommend documenting the following:

• Keep all letters, postcards, and written notices.
• Write down the dates and times when the collector calls, including the person’s name. Also, summarize the conversation.
• Document if the collector contacts someone other than you, such as your boss or a family member. Write down the dates and times. Ask this person to summarize the conversation.

Can New Jersey Law Help?

It might. States might have consumer protection laws that cover other aspects of debt collector behavior that the FDCPA doesn’t. Any violation of the FDCPA could also violate New Jersey’s Consumer Fraud Act. A debt collector who made false promises or lied is acting deceptively, which means they are committing consumer fraud. Our legal team considers all possible avenues for holding debt collectors accountable. More compensation might be available under New Jersey law, so we always look at it.

Contact Our Law Firm Today

There is no excuse for debt collector harassment. Collection agencies should know about the FDCPA and have lawyers who can advise them to follow the law. Any harassing conduct at this point is simply abusive and deserves a response.

Scott J. Goldstein is here to help. Our New Jersey bankruptcy attorney is prepared to stand up for our client’s rights to be treated with dignity and respect. For assistance with a debt collection matter or to stop harassment immediately, please call us at 973-221-5272 or send us an online message.