Author Box
Articles Categories
All Categories
Articles Resources

The Facts About Credit Collection Laws

February 26, 2012 | Comments: 0 | Views: 178

The Fair Credit Act and the Fair Debt Collection Practices Act have helped bring debt collection out of the dark ages. In the past, debt collectors resorted to all kinds of tricks, intimidation and outright threats to try and collect a debt. But credit collection laws have changed, and now consumers have the right to protect themselves against mean-spirited and nasty debt collectors.

For instance, when some bill collectors contact a person, they immediately ask for their bank or credit card information to pay off a debt. In the past, consumers had no defense against this tactic, but now because of the FDCPA, they do. Once a collector contacts you, you have 30 days to dispute the debt, and ask the debt collector to prove that it's yours. During that time, they must cease all efforts to collect the debt, and send you documentation that the debt is valid. If they can't prove it, you have the right to tell them to stop their collection efforts. In other words, you don't have to pay a debt just because someone says you owe it-they have to prove that it's real.

Another great advance in credit collection laws is the way that debt collectors are allowed to interact with you. No longer can they use obscenities, vulgarities, and threats. They aren't allowed to demean, belittle, or otherwise humiliate you into paying a debt. Debt collectors aren't allowed to threaten you, your family or your property because you aren't able to pay a debt, and they can't tell you that they're going to sue you or garnish your wages unless they have the legal authority to do so. These credit collection laws apply to you whether you owe the debt or not.

The days are also gone when you have to put up with constant, unwanted telephone calls from a debt collector. The FDCPA gives you the right to put an end to the constant calls by sending the bill collector a cease and desist letter. The letter should be sent by certified mail with return receipt requested, and tell the collection agency that you no longer wish to receive calls from them. If they continue to call, they are violating the mandates of the credit collection laws.

Some debt collectors have crossed the line by calling friends, family, neighbors and even bosses of consumers in an attempt to embarrass them so they'll pay their debt. But the credit collection laws of today strictly forbid that type of behavior. Instead, a bill collector is allowed to contact a third party person in an attempt to locate you, and nothing else. They aren't allowed to identify themselves as a debt collector, and can't discuss your personal business with them. They are not allowed any further contacts with them, unless the third party person specifically invites them to call back.

If a bill collector is harassing you, you should learn your rights. You don't have to be a victim anymore to unwanted calls, empty threats, name-calling and humiliation by unsavory debt collectors.

Sergei Lemberg, Esq. is the Principal of Lemberg & Associates, a law firm specializing in fair debt collection law, lemon law, and other consumer law.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Credit Collection Laws


Fair Credit Act

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 288

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 300

If you have a bad credit score, it is certainly not good but you can rectify the situation. If you want to remove bad credit from your records, you should take a few steps.

By: Raman Kuppuswamyl Finance > Debt Reliefl July 11, 2012 lViews: 198

Becoming debt free in as little as one year is perfectly possible. Of course, this usually depends on exactly how large the total amount owed is, but in most cases, careful budgeting and

By: Frank S Walterl Finance > Debt Reliefl July 09, 2012 lViews: 155

Debt relief is the concept of forgiving someone for the payment of debts. A debt relief order is a kind of a document for the debtor to get a stand against the creditors, so he gets time for the

By: Hammad Akhtarl Finance > Debt Reliefl July 06, 2012 lViews: 170

Debt counseling was introduced in 2007 under the National Credit Act of South Africa in order to help consumers who are struggling financially. People who are over-indebted could apply for debt

By: Colin W Brazendalel Finance > Debt Reliefl July 06, 2012 lViews: 237

If you are deep in debt and need help to get out of your financial crisis, you can consider applying for debt review. But before you do, you need to understand that your dire necessity of funds is

By: Colin W Brazendalel Finance > Debt Reliefl July 06, 2012 lViews: 158

Regardless of how deep you currently are in debt, becoming debt free for life is just a matter of changing some old habits. All it takes is discipline and proper planning, even after years of

By: Frank S Walterl Finance > Debt Reliefl July 05, 2012 lViews: 188

When a debt collector calls, a practical, reasoned approach will result in a more successful outcome. A good place to start is by asking yourself these four questions.

By: Sergei Lemberg, Esq.l Finance > Debt Managementl April 17, 2012 lViews: 240

If you're dealing with collection agencies, you may need a good credit lawyer to protect your rights-and your credit history. But choosing credit lawyers isn't easy. If you're thinking that credit

By: Sergei Lemberg, Esq.l Finance > Credit Tipsl February 21, 2012 lViews: 198

Even though the Fair Debt Collection Practices Act (FDCPA) was put into place in order to protect consumers from debt collectors who would bend the law, many don't understand exactly what their

By: Sergei Lemberg, Esq.l Finance > Debt Reliefl February 21, 2012 lViews: 173