Debt collectors are trained in the laws of the Fair Debt collection Practices Act . They know what they can and cannot do. They equally know that the consumers that they call are not nearly as knowledgeable about their rights under the law. Under the law, there are many things that collectors may not do to collect a debt. The most common violations of the law are:
- Repeatedly calling you on the telephone
- Threatening you with actions that the debt collector cannot presently take such as garnishments, loss of home, car, job or criminal proceedings
- Lying to you
- Contacting third parties to the debt
- Calling you before 8:00am or after 9:00pm
- Leaving messages on answering machines
Many debt collectors today will stop at nothing to collect money from you. They call people at home, at work, and even on their cell phones. These calls are not only embarrassing, but in many instances the debt collectors are abusive, threatening and intimidating. Under the law, we can direct the debt collectors to stop contacting you and they must obey our direction.
If you have been victimized by a debt collector, we can help. We are happy to discuss the details of your case and confirm your eligibility.
Under the Fair Credit Reporting Act and the Fair and Accurate Credit Transactions Act ("FACTA"), we can get money damages for you if we have to sue the credit reporting agency to get your credit report cleaned up. You may be entitled to actual damages including emotional distress, embarrassment and humiliation.
Credit reporting agencies such as Trans Union, Experian and Equifax frequently make mistakes. In fact, about 80% of consumer credit reports contain errors. Many of these errors can result in a depressed credit score resulting in denial of credit, lost employment opportunities, higher interest rates, higher insurance premiums and more.
Common causes for Credit Report Errors
- Identity Theft – for the past several years, this has been one of the fastest growing crimes in America. Someone gets a hold of your personal information and opens credit accounts in your name.
- Mixed/Mismerged data – Two different people with the same name might have data mixed up between their accounts
- Timely payments reported as late – Some creditors have collection departments that report payments several day and sometimes weeks after receiving a payment from you.
- Derogatory information that remains on a credit report for longer than seven (7) years.
- Bankruptcy information that remains on a credit report for longer that ten (10) years.
- Home mortgage loans being reported as foreclosures when in fact, no foreclosure had ever been initiated by the lender.
Ans: Yes. The easiest way to stop the debt collector from doing that is to send a written letter directing it to cease-and-desist from having any further contact with you. If they call after receiving the cease-and-desist letter, they will have violated the fair debt collection practices act.
Sometimes a debt collector may call you multiple times per day. The FDCPA prevents debt collectors from engaging in conduct in which the tendency is to harass or abuse you. Some courts have held that these multiple calls during the day amounts to harassment and abuse.
Ans: A debt collector may only garnish your spouse’s wages if the debt collector has a judgment against him or her. Just because a debt collector has a judgment against you, they are not entitled to collect money from your spouse. As a matter fact, under the FDCPA, a debt collector can talk to your spouse about your debt, but may not ask your spouse to pay the debt.
Ans: No. However, the debt may appear more than once on your credit report if was handled by more than one collection agency. Only one such agency can report the debt as currently owed.
Ans: Yes, so long as the debt is within the state's applicable statute of limitations. Just because a debt is charged off by a lender does not mean that the lender has abandoned its right to that debt. It simply means that the lender, while following industry guidelines or tax practices, has determined that the debt is not presently collectible. By charging off the account, the lender may be entitled to certain tax advantages. However, the debt remains the consumer's obligation.
Ans: Only if the contract between you and the credit grantor provides for interest. Under the Fair Debt Collection Practices Act, a debt collector can only charge you for those items that are authorized by the contract, authorized by state law. Many times collectors violate the FDCPA by charging interest when the contract between the consumer and the merchant does not provide for such charges.
