Once a person is in trouble or in debt because of not being able to pay as required, the person can be under much stress. The mere feeling of knowing that one owes another party and is not able to pay is enough irritation as it is. In addition, knowing that a collection agency will be a constant visitor can make life very uncomfortable for a debtor.
According to the U.S. Fair Debt Collection Practices Act that was enacted in 1978, the law seeks to get rid of the harassing and abusive practices that debt collectors, together with debt collection agencies have and at the same time it protects the rights of debtors. The FDCPA laws lay down the rules that must be followed by the collection agencies, the consequences that come about as a breach of these laws and the rights to defend debtors from allegations. Breaching the laws translates into legal action being taken against the collection agency in question and a debtor having a reversal of the debt.
The Powers of Debt Collectors
Some collection agencies take advantage of the fact that most debtors are not aware of their rights pertaining to debt collection. This does not mean that all collection agencies apply scare tactics when collecting debts; there are a number of them that apply lawful means. Nevertheless, some collection agencies use whatever means possible to recover debts by instilling fear in the debtor and do not care about the stress that may be on the debtor. In essence, debt collectors do not have any rights that allow them to apply scare tactics when demanding what is owed. They are neither appointed court bailiffs nor do they have similar recovery powers.
Debt Validation
A debtor can dispute a debt in part or in whole. To be able to dispute an amount owed, the debtor can write down the disputed amount within thirty days that the demand letter allots and at the same time the debtor should request that the debt be validated. The debt collection agency should provide the debtor with documentation reflecting the total amount the debtor owes and the responsibility the debtor has of paying it, together with payment agreements, contracts and copies of the bills not paid. The Fair Debt Collection Practices Act states that the court must not construe the failure of a debtor to dispute the debts validity as a liability admission.
Communication
According to the Fair Debt Collection Practices Act, an agency dealing in debt collection cannot make any communication with a debtor at a place or time which the debtor finds inconvenient. The agencies should assume that the appropriate times they can contact a debtor falls between eight o’clock in the morning and nine o’clock evening. In addition, a collection agency is restricted from communicating with any other person other than the debtor. In the same time, an agency is barred from meeting a debtor directly if the person has legal representation. In such a case, any contact a bill collector wants to have with the debtor can only be done through the attorney. It is also an infringement of rights to call up a debtor in the hours not stipulated by the law, failure to do this gives the debtor the right to sue the agency.
Representation
Debtors have rights of being represented legally in a court of law. As a matter of fact, if a debtor disputes the debt and the collecting agency sues, the debtor has a right to be represented by an attorney. Nevertheless, even if debtors cannot hire one, it is essential for the debtor to attend court hearings and follow proceedings in regard to the debt owed. If a debtor misses a court hearing, in most cases the court will rule in favor of the debt collecting company. This leaves a negative mark on the debtor’s credit score and leaves the debtor open to all efforts of collection such as the bank account being frozen or levies placed on physical assets like a vehicle or house.
Harassment
Bill collectors have no right of harassing debtors. Harassments can be in the form of threats of criminal action, violence which can harm the physical position, reputation or property of the debtor, using offensive language. To report a debtor to some other party other than a court system, credit bureau or to call a debtor constantly for the purpose of harassing or annoying them is also regarded as a form of harassment. It is also unlawful to make calls to the residence of a debtor without making any attempts to confirm the identity of that debtor. Bill collectors also cannot threaten to sue if they do not intend to make such an action. According to the Fair Debt Collection Practices Act, an attorney has no right to sue a debtor in a state which is not of the debtor; therefore if the attorney makes such a threat it is regarded illegal and punishable according to the law.
Privacy Rights
It is important for the collection agent to protect and respect the privacy rights of one in debt. Other than the collection agency leaving messages at the work place or home, they have no right to make any referrals in regards to the debt with any other unauthorized party. The only information that can be left is the name and contacts of the collection agency and the reference number of the account of the debtor.
Legal Process
There is a stipulated process that a bill collector must follow when suing a person in debt. The first thing is to offer a written notice to the debtor stating what is being owed; this is also referred to as a demand letter. The notice should include the amount of debt and name together with the address of a creditor and must have a thirty day allowance in which the debtor is allowed to respond by paying the full amount, disputing the said debt or making arrangements of payment. After the expiry of the thirty days and the debtor has not sent any written correspondence, a debt collection agency is at liberty to continue with the lawsuit.
