Faqs
F.A.Q.
What is the Fair Debt Collection Practices Act (FDCPA)?
The FDCPA is a federal law that protects consumers from abusive, deceptive, and unfair debt collection practices. It regulates how debt collectors can interact with consumers and sets strict guidelines on their conduct.
Who does the FDCPA apply to?
The FDCPA applies to third-party debt collectors, including collection agencies, debt buyers, and attorneys who collect debts on behalf of others. It does not generally apply to original creditors collecting their own debts.
What types of debts are covered under the FDCPA?
The FDCPA covers personal, family, and household debts, such as credit card debt, medical bills, mortgages, and other consumer debts. It does not cover business debts.
What are debt collectors prohibited from doing under the FDCPA?
Debt collectors are prohibited from using abusive language, making threats, contacting you at inconvenient times or places, disclosing your debt to third parties, and engaging in deceptive practices, among other restrictions.
Can a debt collector contact me at work?
A debt collector can contact you at work unless they know or have reason to know that your employer disapproves of such contact. You can request that they not contact you at work, and they must comply.
How can I stop a debt collector from contacting me?
You can stop a debt collector from contacting you by sending a written request asking them to cease communication. Once they receive your request, they can only contact you to confirm there will be no further contact or to inform you of specific legal actions they plan to take.
What should I do if a debt collector sues me?
If a debt collector sues you, itโs important to respond to the lawsuit by the deadline. You may want to consult with an attorney to understand your rights and defenses.
What are my rights if a debt collector harasses or threatens me?
If a debt collector harasses or threatens you, they are in violation of the FDCPA. You can report them to the Consumer Financial Protection Bureau (CFPB), your state attorney generalโs office, or consider filing a lawsuit for damages.
How can I verify that a debt collectorโs claims are legitimate?
You have the right to request written verification of the debt within 30 days of receiving the initial contact from the debt collector. The collector must provide details such as the amount owed and the original creditorโs name.
Can a debt collector talk to others about my debt?
No, a debt collector is generally not allowed to discuss your debt with anyone other than you, your spouse, or your attorney. They may contact third parties only to obtain your contact information, and even then, they cannot disclose that you owe a debt.
What is the statute of limitations on debt collection?
The statute of limitations varies by state and the type of debt. It typically ranges from three to six years. Once the statute of limitations has expired, the debt is considered โtime-barred,โ meaning the collector cannot sue you to collect the debt.
What happens if I pay a debt collector? Does the debt go away?
If you pay the debt in full, the collector should mark it as โpaidโ on your credit report, and the debt should no longer be collectible. If you settle for less than the full amount, the collector may mark it as โsettledโ or โpaid for less than owed,โ which can still impact your credit score.
Can a debt collector charge interest or fees?
A debt collector can charge interest or fees only if the original contract or state law allows it. They must clearly disclose any additional charges and ensure they are legally permissible.
What are my options if a debt collector violates the FDCPA?
If a debt collector violates the FDCPA, you can file a complaint with the CFPB, your state attorney general, or the Federal Trade Commission (FTC). You may also have the option to sue the collector in state or federal court for damages.
How do I file a complaint against a debt collector?
You can file a complaint with the Consumer Financial Protection Bureau (CFPB) online at their website, by phone, or by mail. You can also file complaints with your state attorney general’s office or the Federal Trade Commission (FTC).
What should I do if I believe a debt collector has violated my FDCPA rights?
If you believe your rights have been violated, document all interactions with the collector, keep copies of all correspondence, and consult with an attorney to explore your legal options. You may be entitled to damages.
What kind of damages can I recover if I sue a debt collector?
If you successfully sue a debt collector for violating the FDCPA, you may recover up to $1,000 in statutory damages, plus any actual damages suffered, court costs, and attorneyโs fees.
Can I settle a debt for less than the amount owed?
Yes, you can negotiate with the debt collector to settle the debt for less than the full amount. However, any forgiven debt may be considered taxable income, and the settlement may be noted on your credit report.
What is the difference between a debt collector and a creditor?
A creditor is the original entity to whom you owe money, while a debt collector is a third party hired by the creditor to collect the debt on their behalf. The FDCPA primarily applies to third-party debt collectors.
Do I need an attorney to deal with a debt collector?
While you are not required to have an attorney, having one can be beneficial, especially if the debt collector is violating your rights or if you are being sued. An attorney can help you understand your rights, negotiate settlements, and represent you in court.
