The nation’s consumer projection agency, The Federal Trade Commission (FTC), enforces a law called the Fair Debt Collection Practices Act. This act helps you fight back against unethical, unfair and illegal tactics of collection agencies. It is one of the most important debt laws. Before you get paranoid about your debt situation and consider a debt resolution option it is advisable to know where you stand when it comes to the law. The act prohibits debt collectors from using abusive, deceptive or unfair practices to draw money out of you. This act covers rights such as family, personal and household debts. They include money on an auto loan, on a personal credit card account, mortgage and medical bills. It only does not take into consideration, the debts that you may have incurred to run a business.
Some of the questions that the act answers are as follows.
Can a debt collector contact you any time?
As per the law, the debt collector is not supposed to bother you at inconvenient times or places. Before 8 in the morning and after 9 at night the collector should not contact you. They are also not to contact you when you are at work. However if you do not have a problem, then a collector can contact you anytime.
Can the debt collector contact anyone else for your debt?
The collectors may contact another person, just to find out your address or contact information. Usually, collectors are allowed to contact a third party only once, as per the law. If you are being represented by an attorney or a debt collection law firm, then the collectors have to contact the attorney, instead of you. When it comes to third parties, the collector is only to contact them to get your location and is not permitted to share your debt problems with any one else.
Can debt collectors take legal action during the 30 day disputing period?
When you have not notified the collection agency in writing abut the fact that debt has been validated, then section 809(b) allows the collectors to continue the collection activities. This will also include taking legal action and demands for payment. The 30 day period is treated as a dispute period in which you may insist that the collector is to verify the debt. This 30 day period is not treated as a grace period that should prohibit collection efforts.
Debt law is thus, present to make sure that you are not constantly harassed or cheated in any way by the collection agencies.