Debt Collection Laws You Should Know About

If you are behind in paying your bills, your creditor may use debt collectors after exhausting all other means of getting their money. 

Over a third of the American adult population has credit files showing debts in collection. 

If you receive a call about a debt you genuinely owe, it is your responsibility to respond and settle the debt. 

Debt collectors are, however, known for being rude, intolerable, and even intimidating while attempting to get borrowers to pay up. 

*** SPECIAL NOTE *** – If your credit cards, personal loans, or medical debts have become unmanageable and you owe over $20,000… then go here for debt relief. We can help!

While debt collection can be an intimidating experience, knowing your rights can make all the difference. 

We are dedicated to helping you understand the laws that protect you from unfair debt collection practices. By understanding these laws, you can better manage your debt and make informed decisions. 

KEY TAKEAWAYS:

• The Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive, deceptive, and unfair debt collection practices.
• The Gramm-Leach-Bliley Act (GLBA) and the Fair Credit Reporting Act (FCRA) ensure your financial privacy and accurate credit reporting.
• Understanding your rights under the Credit CARD Act and other laws can help you manage debt collection effectively.

What To Know About Debt Collection

Debt collection is the process by which creditors attempt to recover unpaid debts from consumers. 

While debt collectors have the right to seek repayment, they must adhere to specific legal guidelines designed to protect consumers. 

These guidelines are established by several key laws, which we will discuss in detail below.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a federal law that aims to protect consumers from abusive, deceptive, and unfair debt collection practices. 

Under the FDCPA, debt collectors must adhere to the following rules:

• They can only contact you between 8 a.m. and 9 p.m. and are prohibited from contacting you at work if you inform them it is not allowed.
• They cannot use threats, obscene/profane language, or repeatedly call you to harass you.
• Within 5 days of initial contact, they must provide a written notice detailing the amount of debt, the name of the creditor, and how to dispute the debt.

If you believe a debt collector has broken the rules, the Federal Trade Commission recommends reaching out to them, the Consumer Financial Protection Bureau (CFPB) and/or your state attorney general’s office.

Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act (GLBA) focuses on protecting your financial privacy. 

It requires financial institutions, including debt collectors, to:

• Implement measures to protect the confidentiality and security of your personal information.
• Provide clear privacy notices explaining how your information is collected, used, and shared, and offer options to opt-out of certain information sharing.
• Ensure third-party service providers who have access to your information also follow stringent data protection practices.

Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) ensures the accuracy, fairness, and privacy of your credit information. 

It sets guidelines for how debt collectors report information to credit bureaus, including:

• Accurate Reporting – Debt collectors must provide accurate information about your debts to credit reporting agencies.
• Dispute Rights – You have the right to dispute incorrect or incomplete information on your credit report. The credit reporting agency must investigate and correct any inaccuracies.
• Access to Credit Information – You can obtain a free credit report annually from each of the three major credit bureaus to review your credit information.

Your Rights Under the Credit CARD Act

The Credit CARD Act of 2009 provides additional protections for consumers, particularly in how credit card companies manage interest rates and fees. 

Key provisions include:

• Interest Rate Changes – Credit card issuers cannot increase your interest rate on existing balances unless you are over 60 days late with a payment. They must provide 45 days’ notice before increasing rates on new transactions.
• Fee Transparency – The Act limits fees for over-the-limit transactions and late payments, ensuring greater transparency in credit card billing.
• Payment Allocation – Payments made above the minimum payment must be applied to the balance with the highest interest rate first, reducing the cost of carrying a balance.

Clear Identification By Collectors

Debt collectors are required by law to clearly identify themselves and the purpose of their contact. 

They must provide:

• The name of the debt collection company and the name of the person contacting you.
• Details about the debt they are attempting to collect, including the original creditor’s name and the amount owed.
• Information about your right to dispute the debt and request verification of the debt.

How To Deal With Debt Collection Harassment Or Deception

If you experience harassment or deceptive practices from a debt collector, you have several options to address the situation:

• Keep detailed records of all communications with the debt collector, including dates, times, and the nature of each contact.
• If you want the debt collector to stop contacting you, send a written request. Once they receive it, they can only contact you to confirm they will stop communications or to inform you of specific legal actions.
• Report the debt collector to the Consumer Financial Protection Bureau, the Federal Trade Commission, or your state’s attorney general if you believe they are violating the FDCPA.

How To Report Violations Of Debt Collections Laws

If a debt collector violates your rights under the FDCPA or other relevant laws, you can take the following steps:

• Consult with an attorney who specializes in consumer rights and debt collection issues.
• Submit a complaint to the CFPB, FTC, or your state attorney general’s office.
• Consider filing a lawsuit against the debt collector. You must file your lawsuit within one year of the debt collector’s violation. If you suffered lost wages or medical bills due to the collector’s actions, you can also sue for those damages.

Final Thoughts About Debt Collection Laws You Should Know

Understanding debt collection laws is crucial for protecting your rights and managing your debts effectively. 

The FDCPA, GLBA, FCRA, and Credit CARD Act provide significant protections, ensuring that debt collectors operate within legal boundaries. 

By knowing your rights and how to respond to unfair practices, you can navigate debt collection with confidence.

At Americor, we understand the unique financial challenges people are facing today.

As America’s trusted source for debt relief solutions, we aim to empower you with financial knowledge that can lead to informed decisions, whether it’s about savings, investments, or managing debt.

If your debt has become unmanageable and you have difficulty making your debt payments each month, then you should consider a FREE consultation call with one of our certified Debt Consultants, who can provide personalized debt relief advice tailored to your specific needs.

By taking proactive steps today, you can put an end to your financial stress and work towards a brighter financial future. 

Remember, there is always hope for debt relief, and our team of experienced professionals are ready to guide you on your journey to regaining control of your finances.

For more information on Americor’s debt relief services, contact us today to see how we can help you eliminate your debts, and get on the fast-track to becoming completely debt-free!