The following is a guest post from Kathryn Katz, an avid cat lover, single mom, internet marketer and professional copywriter. Kathryn is a Certified Personal Finance Counselor and works for Consolidated Credit Counseling Services.
Many consumers have suffered from financial difficulties during the recession. High unemployment, upside down mortgages and increased interest rates on credit cards are just some of the challenges facing Americans. If you've gotten behind in your bills, you might find that your creditors have charge-off your debts and suddenly you're in collections.
There are many horror stories about debt collectors engaging in abusive, deceptive and unfair debt collection practices to intimidate consumers into paying their debts. Congress has passed several laws to govern how creditors and third party debt collectors can collect on debts to protect consumers:
Fair Debt Collection Practices Act (FDCPA)
This act prohibits third-party debt collectors from using abusive, deceptive and unfair debt collection practices to collect a debt, including:
- Telling anyone that you owe money.
- Using threats of violence to collect debts.
- Using obscene or profane language while on the phone.
- Calling repeatedly to annoy you.
- Misrepresenting who they are or amount you owe.
- Falsely claim that you've committed a crime and threaten you with jail.
Warning: The FDCPA only protects you against third-party debt collectors, not original creditors.
Federal Trade Commission Act (FTC Act)
This act gives the Federal Trade Commission the authority to take action against third-party debt collectors that violate the FDCPA, and original creditors who use unfair and deceptive debt collection practices. If your rights have been violated, you can complain to the FTC.
Fair Credit Reporting Act (FCRA)
A credit report is created from information provided by data furnishers, which can include creditors, debt collectors and debt buyers. FCRA requires that all information provided is accurate. It details the process consumers need to follow for address disputes.
In addition to these laws, Congress has added provisions in other federal statutes that affect debt collection practices. The Telephone Consumer Protection Act of 1991 regulates the use of predictive dialers, a technology that debt collectors use in their collection efforts. The Financial Privacy Requirements of the Gramm-Leach-Bliley Act governs how debt collectors can collect and share your nonpublic personal information, and the safeguards they have to implement.
Because states are not allowed to enforce FDCPA, many of them have enacted their own fair debt collection statues. Many of these statutes mirror the FDCPA, and give law enforcement the power to protect consumers within their state. Here are some examples of state debt collection statutes:
Also, be aware of the statute of limitations that applies in your state. Your debt collector has a limited opportunity to file legal action against you. According to the FTC, the statute of limitations does vary by state but typically ranges from 3 to 10 years. In some states, the statute of limitations can restart under certain circumstances. For example, in Kansas, the statute of limitations resets when the consumer makes a payment towards the debt or acknowledges the debt in writing.
Before dealing with debt collectors, make sure you know your rights, and don't be afraid to stand up for them if the debt collector is using abusive, deceptive and unfair debt collection practices.
Tidak ada komentar:
Posting Komentar