Questions on Dealing with Debt Collection

In the event you’re behind in paying your payments for several months, you’d better get yourself prepared for dealing with debt collection. Chances are the debt collector will call you all the time to force you to pay off debt.

To forbid all debt collectors from applying abusive, deceptive or unfair practices to collect debt from you, FTC, the Federal Trade Commission, which is the nation’s consumer protection agency, imposes the Fair Debt Collection Practices Act (FDCPA).

With FDCPA on your side, you should not feel terrified while dealing with debt collection. The followings are the most common questions and answers about consumer’s rights under this Act.

The types of debts covered

It covers personal, household and family debts including personal credit card accounts, car loan, medical bill and mortgage.

The hours that a debt collector can contact you

A debt collector can only contact you between 8 am and 9 pm, unless you agree to it for different time. In case the collector calls you at work, you may write them an official letter and tell them you are not allowed to receive calls at work and do not want to receive any calls to your home phone or cell phone either.

The way to stop a debt collector from contacting you

If the collector constantly calls you for debt, you should at least talk to him once to let him know that you no longer wish to receive the phone contact. Instead, get the mailing address from him and send him a Cease and Desist Letter by certified mail with return receipt, just so you’ll be able to document the paper/letters you send to the collector.

As soon as the collector receives your Cease and Desist Letter, by law they cannot contact you again. However, there are 2 exceptions: a collector can still contact you to let you know that there will be no further contact or to inform you that they intend to take a specific action, such as filing a lawsuit against you.

The limitation for a debt collector contact anyone else about your debt

The debt collectors can only contact your lawyer, if a lawyer is representing you. On the other hand, they may contact other people when you don’t have a lawyer – but only allowed to find out your address, phone number and where you work. They usually are prohibited from making contact with 3rd parties for more than once and they are not permitted to talk about your debt with any person other than you, your spouse or your lawyer.

Dealing with debt collection requires knowledge and patience. My suggestion to you is take a close look at the Fair Debt Collection Practices Act, understand your right, so you are well prepared to handle the collection calls.