Debt is a burden for many Americans, but you shouldn't let debt collectors add to that burden.
More complaints are lodged against the debt collection industry than any other, according to the
Federal Trade Commission (FTC). The key to being protected from debt collectors is to know your rights.
The FTC enforces the
Fair Debt Collection Practices Act which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from an individual, according to the
FTC's Web site.
The Act covers personal, family and household debts, including money owed on a personal credit card, an auto loan, a medical bill and a mortgage.
Here are the Top 5 tips on dealing with debt collectors:
- A debt collector must tell you how much you owe. Every collector must send you a written notice telling you how much money you owe within five days after they first contact you. The notice must also include the name of the creditor to whom you owe the money and how to proceed if you don't think you owe the money.
- You can stop a debt collector from contacting you. If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter. If you don't want the debt collector to contact you any more, tell the collector in writing to stop contacting you. Once the collector receives the letter, they may not contact you again except to tell you that there will be not further contact or to let you know that they or the creditor intend to take a specific action, like a lawsuit.
- Debt collectors can't talk to others about your debt. If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work.
- Debt collectors can't harass you. Debt collectors may not harass, oppress, or abuse you or any third parties they contact.
- Debt collectors can't mislead you. They can't threaten to sue you if they don't have any intention of doing so. They can't misrepresent the amount you owe or give you other false statements.
Report any problems you have with a debt collector to your state Attorney General's office and the FTC.
Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act, so ask your state Attorney General’s office about how to determine your rights under your state’s law.
