Overview
Debt collectors
are regulated by numerous state and federal laws in their debt
collection activities. That's where our firm can help. Most
people know that debt collectors cannot abuse them on the phone or
in writing--what many people don't know is that they have a lot of
other legal rights, too.
For example, a
debt collector cannot call you at work if they know that it is
inconvenient for you or that your employer prohibits it. Debt
collectors cannot tell others about your debts, like your next
door neighbor or your co-worker. Debt collectors also must be
licensed in the State of Minnesota if they are collecting the
debts of others. These are just a few of the numerous protections
you have as a consumer. If a debt collector violates your rights,
our firm can help.
As a
consumer, you are afforded a lot of consumer protections against
debt collectors, both state and federal. Our firm primarily works
with consumers whose rights have been violated under the FDCPA and
other consumer protection statutes. If you have a problem with
your credit report,
click here to learn more about how credit reporting works.
Otherwise, please read on.
The Federal Fair Debt Collections Practices Act ("FDCPA")
As a consumer, you
are entitled to file a lawsuit against any debt collector who
violates your rights
under the FDCPA. In short, the FDCPA allows a consumer to
recover their actual damages, statutory damages of up to $1,000
and their attorney's fees and costs. While this may seem like a
modest amount, to debt collectors who violate the law there is
much more at stake: Increased insurance rates, decreased collection
rates, potential governmental regulatory action, and the spiraling
costs of defending a lawsuit for their illegal conduct.
The deck is
stacked against consumers with sophisticated debt collection
tactics. As a consumer, you should not hesitate to shield
yourself from these sharp practices and exercise your rights under
the FDCPA. Our law firm has the experience, resources and ability
to to zealously represent you in your FDCPA action against any
debt collector. We file federal civil lawsuits against debt
collectors who violate any state or federal law. The FDCPA
prohibits any collection efforts which violates any law. That
means that amongst other things, a collector must tell the truth,
be respectful to you, and cease communicating with you when you
have a lawyer. Our firm can and will make illegal collection
activity stop dead in its tracks.
We firmly believe
that everyone should pay their just and owing debts. But our
country was founded on historic legal principles which rejected
debtor's prisons and the like. Likewise, we think that no debt
collector ought to violate your rights to get payment. It's that
simple. Your legal right to fair, legal, debt collection activity
cannot take a back seat to any debt collector's violations of
state and federal law.
Who is Covered: Some Definitions
Consumer.
Any person who owes or is
alleged to owe a consumer debt.
Debt
Collectors. According to the FDCPA, a debt collector is any person, other than
the creditor, who regularly collects debts owed to others and
includes attorneys who regularly collect debts.
Covered
Debts. Any debt
that is primarily for personal, family, or household purposes are
covered under the FDCPA. Business and commercial debts are not
covered. Alimony, child support, criminal fines, and tort claims
are generally not considered debts within the meaning of the FDCPA.
How a Debt Collector Can Communicate With You
Communications Generally. A debt collector
may communicate with you by mail, in person, by telephone or
telegram. A debt collector cannot contact you at times or in
places that they know are inconvenient to you, such as at work if
your employer does not permit it or during daytime sleep hours if
you work nights. A debt collector cannot contact you before 8 a.m.
or after 9 p.m.
Stopping
Communications.
If you send a written
request to a debt collector demanding that they stop contacting
you, the debt collector must stop contact immediately, but they
may send one last communication to you advising you that they
intend to take a specific action against you including filing a
lawsuit.
Attorney
Representation.
If you are represented by an attorney concerning a consumer debt
(e.g., a consumer rights attorney such as our office, a bankruptcy
attorney, or a family attorney), the debt collector cannot
communicate directly with you except through your lawyer.
Contacting Others.
A debt collector cannot
contact any third party about your debt. This means that they
cannot call you sister-in-law, your grandson, or your neighbor
about the debt. Debt collectors are not allowed to tell anyone but
you and your attorney that you owe anyone else money.
Locating
You. A debt
collector has a right to contact other people once, and only once,
in an effort to locate you. Debt collectors are not permitted to
ask neighbors to bring you phone messages, ask you to come across
the street for a phone call, or tell other people that they are
attempting to collect a debt from you.
Debt Validation
30-Day Validation Notice Requirements. Within five days after
you are first contacted, a debt collector must send you a written
notice telling you the following:
-
The
amount of the debt.
-
The
name of the creditor to whom the debt is owed.
-
A
statement that unless you, within thirty days after receipt of
the notice, dispute the validity of the debt, or any portion of
it, the debt will be assumed to be valid by the debt collector.
-
A
statement that if you notify the debt collector in writing
within the thirty-day period that the debt, or any portion
thereof, is disputed, the debt collector will obtain
verification of the debt or a copy of a judgment against you and
a copy of such verification or judgment will be mailed to the
consumer by the debt collector.
-
A
statement that, upon the consumer's written request within the
thirty-day period, the debt collector will provide the consumer
with the name and address of the original creditor, if different
from the current creditor.
-
Finally, a statement that the communication is from a debt
collector attempting to collect a debt and that any information
obtained will be used for that purpose.
-
Every
debt collector who tries to collect your debt must provide their
own 30-day validation notice, even if a previous debt collector
has already given such notice.
Rights While Debt Under Dispute. If you
dispute a debt in writing within the 30-day validation period, a
debt collector cannot continue to collect on the debt until they
have sent you proof of the debt or a copy of the judgment.
What a Debt Collector is Prohibited From Doing to You
Collection Fees Prohibited. A debt
collector may not charge you an interest, fees, or collection
charges, except those amounts that were authorized by the
agreement with the creditor to whom the debt is owed.
Harassment
Prohibited.
A debt collector
may not use any language, communication or conduct to harass,
oppress, or abuse any person. This includes prohibits on:
-
Use threats of
violence or harm to the person, property, or reputation.
-
Advertise your
debt or publish a list of consumers who refuse to pay their
debts, except to a credit bureaus.
-
Use obscene or
profane language.
-
Repeatedly use
the telephone to annoy someone or ring the telephone constantly.
-
Call people
without identifying themselves.
False
Statements Prohibited.
A debt collector may not use any false statements when trying to
collect a debt. This includes:
-
Falsely implying
that they are an attorney or government representative.
-
Falsely implying
that you have committed a crime by not paying a debt.
-
Falsely
represent that they operate or work for a credit bureau.
-
Misrepresent the
character, amount, or legal status of the debt.
-
Indicate that
papers being sent are legal papers when they are not.
-
Indicate that
papers being sent are not legal papers when they are.
Threats
Prohibited. A debt collector may not use threats when trying
to collect a debt. This includes threats like the following:
-
You will be
arrested if you do not pay your debt.
-
They will seize,
garnish, attach, or sell your property or wages, unless the
collection agency or the creditor intends to do so and they have
the right to do so.
-
Take any actions
against you which are illegal.
-
Violate any law
in an effort to collect a debt.
Deception
Prohibited. A debt collector may not use deception when
trying to collect a debt. This includes deceptions like the
following:
-
Send you
anything that looks like an official document from a court or
government agency when it is not.
-
Give false
credit information about you to anyone.
-
Use a fake or
false name, unless that name is allowed by state law and
properly registered with the state, if required.
Unfairness Prohibited. A debt collector may not treat you
unfairly in attempting to collect a debt. This includes unfairness
like the following:
-
Collect any
amount greater than your debt, unless allowed by law.
-
Deposit a
post-dated check more than 5 days before the date on the check,
without giving you notice of when they intend to deposit it.
-
Solicit a
post-dated in order threaten criminal prosecution or threaten to
cash the check early.
-
Make you accept
collect calls or pay for telegrams.
-
Take or threaten
to take your property unless this can be done legally, including
wrongfully repossessing your vehicle.
-
Contact you by
postcard.
Payments on Multiple Debts. A debt collector must apply you
payments on multiple debts in the order you direct. A debt
collector is prohibited from applying any payments you send in to
debts that you believe you do not owe.
Your Rights to Sue
Your
Right to Sue a Collector for Violations of the FDCPA. You
have the right to sue a debt collector within one year from the
date you believe the law was violated. This is what our law firm
does. If you do not bring you lawsuit within one year of the
violation, your claim will be forever barred by a statute of
limitations. If you win your lawsuit, you may recover money for
the damage you suffered, statutory damages of up to $1,000 plus
court costs and your attorney's fees.
If you have been
subjected to any of these illegal practices,
please contact our
office.
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