Stop bill collection and debt collectors in their tracks!
When collection agencies or bill collectors harass you over invalid, inaccurate
or outdated debts or debts that are not yours, you have the right to dispute
these debts under the FDCPA.
If you believe you are a victim of unfair or illegal debt collection tactics, submit your information to a FREE* Fair Debt Lawyer by:
The debt collector may just be liable to you for statutory damages of up to $1,000, plus any actual damages suffered, plus attorney fees!
CAUTION: The information on this page and, indeed the
entire site, assumes you are acting in good faith. In other words, you are not
trying to get one over on your creditors. All information, advice, tips and
letters are based on the assumption that you have run into unexpected financial
problems and now you need help dealing with collectors who do not listen when
you say the debt is not yours, the debt is invalid or you no longer have the
means to pay the debt.
The FDCPA is your most powerful weapon against unfair and illegal
collection practices. Bill collectors, as defined by the FDCPA, must follow the
rules when contacting you and when you contact them. Below are three of those
rules:
- What type of notification letters are
legal?
- How to take action - sample letters
- What if they continue to call?
It's possible to stop bill collection efforts using your
State's Statute of Limitations (SoL) for enforcing debts!
Most debts expire! That's right, almost all
debts eventually expire. Put another way, the legal time limit for enforcing
the collection of a debt can expire. It's called the Statute of Limitations and
every state has its own SoL rules. Most unsecured debts expire 4 - 6 six years
after going into default. Some debts such as federal student loans and federal
and state taxes never expire. Judgments may have a statue of limitations as
long as 20 years and, in some states overdue child support never expires!
If you've been contacted about an old debt, AND you're sure
it's yours, then you need to decide whether to pay the debt or not.
Although there are many moral, personal and legal issues to consider
before making a decision; one thing you should always verify is whether or not
the statutes of limitations for
enforcing the debt has expired. Doing so allows you to make an
informed decision.
Three important FDCPA Rules
Up 1. What type of notification letters are legal?
All collection agents and certain attorneys must comply with
section 12 of the Fair Debt Collection Practices Act (FDCPA) which clearly
regulates the type of letters and the language that collection agents can use.
Section 807 explains what collectors can and cannot do and provides sixteen
specific examples of false or
misleading tactics. Bill collectors face fines up to $1,000 per
violation and, if you or your reputation are damaged, the FDCPA allows for
punitive damages as well.
If you've received a deceptive
collection letter and want to pursue legal action, you'll need an
attorney. Click here to locate a FREE* Fair Debt Lawyer.
Up 2. How to take action!
The FDCPA requires bill collectors to make sure they have the
right person and that they are collecting the legal amount of money. Collectors
have the right to try and locate debtors and this sometimes results in calls to
the wrong person because of inaccurate information and record-keeping. Although
contacting the wrong person is not a violation of the FDCPA, continuing to call
that same person after being informed they have the wrong person is a serious
violation. Just as serious is calling and using harassing and abusive tactics
especially when the debtor disputes the debt.
When you believe debts are invalid or they are not your
debts use these links to view free sample letters that you can use to write
your own dispute letter to stop unethical and illegal bill collection
harassment.
Dispute Letter -
Initial
Dispute Letter - Follow-up
Mailing and Record Keeping Instructions
NOTE: Follow the mailing
instructions closely as accurate records are key to proving your case!
Up 3. What if they continue to call?
The FDCPA requires collectors, upon receipt of your written
dispute, to stop all collection efforts and to cease all contact with you until
they comply with section 809 - validation of
debts.
Although bill collectors who continue to demand payment
without validating the debt can be sued for violating the FDCPA you must keep
in mind that until they receive your written dispute, they can continue their
collection activities and if you fail to respond within the 30 day limitation
period, they can ignore your dispute altogether.
In order to prove debt collectors have violated the FDCPA,
you'll need accurate records. Therefore, keep all written correspondence
including envelopes and mail receipts. Record all phone calls BUT TELL the
caller you are taping the call. With proof in hand, contact your
state attorney
general and file a formal complaint.
The FDCPA also requires collectors, upon receipt of your
written stop calling letter, to cease all contact with you except for specific
types of contact. Any contact after receiving your stop calling letter
CANNOT include a "demand for payment".
IMPORTANT: Bill collectors are usually able to
validate debts fairly quickly on delinquent accounts less than a few years old.
However, as the debt ages it becomes harder to validate because the original
creditor may have deleted some accounts or the records have been lost or
misplaced due to the business being sold or it went out of business. Another
reason is debts are sold on the junk debt circuit so many times, the original
creditor information may have been lost along the way.
When collectors cannot validate a debt, they often sell the
debt to another junk debt buyer. Because the FDCPA does not require
collectors to tell you when they sell your account and the law
prohibits collectors from sharing your information with other collectors,
you can expect to be contacted by a different collection agency!
When this happens, expect to dispute the debt all over again.
Remember "knowledge is power"
Learn as
much as you can about the FDCPA and your rights so you are better prepared to
deal with collection situations as they come up. Some bill collectors can be
particularly nasty, underhanded, and persistent but don't be
intimidated! Protect yourself by learning your rights and by report
violations to your state attorney general!
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