Bill Collectors Must Toe the Line

Ever been called at three in the morning by a bill collector? Ever had a bill collector call your employer and tell the employer about a bill that is owed? In response to those examples of unscrupulous and underhanded bill collection, Congress passed the federal Fair Debt Collection Practices Act in 1978. Some states, like California, have their own state law versions.

Essentially what this law has done is to level the playing field between a debtor and a bill collector. The collector has to abide by certain rules and regulations. The bill collector must play fair in trying to collect the debt. They must identify as such when contacting a debtor. There cannot be endless and repetitive phone calls. There can be no badgering, harassing, or other tricks to get the debtor to pay that bill. The Fair Debt Collection Practices Act sets forth the rules of the road for debt collection.

The collector can only call between the hours of 8 am and 9 pm local time. If a debtor tells a bill collector to stop calling, then that collector must stop. The collector must identify the original creditor, the company to whom the bill was originally due. This is so the debtor can figure out whether that debt is indeed really owed.

The debtor has the right and should always ask for validation of the amount being claimed. Make that request in writing and make it promptly. Once the collector has received that written request, all efforts to collect that debt must cease until after the collector mails evidence of the validation of that claim, which should be within thirty days after receipt of the debtor’s letter. However, it is entirely possible that the debt does not belong to that debtor.

Similarities in names and other criteria can create confusion and do often result in an erroneous collection effort. Prompt communication between the debtor and bill collector is vital. Collectors are barred from using abusive and/or profane language. They can tell the debtor that a lawsuit may follow if the debt is not paid, but collectors cannot threaten litigation that is either not permitted or not contemplated.

The debtor can tell the collector in writing that all further communications to collect the debt must stop. The collector must abide by that instruction. If the debtor is represented by an attorney, then the collector cannot contact the debtor directly, but must communicate through counsel. The collector cannot claim to be a member of law enforcement or an attorney.

The collector cannot threaten to provide any false information about the debtor to a collection agency. The collector cannot discuss the debt with any third parties, except for the debtor’s spouse or attorney. Even more than thirty years after the FDCPA was enacted, there are still collectors who forget, or who never learned, how to play by the rules. Knowledge of the basic principles helps to push back if a bill collector steps out of line.

Nick Messe is president of Lead Frog LLC. Learn more about the Fair Debt Collection Practices Act – FDCPA – and how it protects you from debt harassment. Visit FairDebtHelpers.com for a free evaluation of your case by an experienced fair debt attorney.