Frequently Asked Questions About Debt Collection

Does the Fair Debt Collections Practices Act apply to major credit card banks? No, it only applies to the professional debt collection companies or collections attorneys the major credit card banks hire. The original creditors are regulated by state law but major credit card companies follow policies close to those of the FDCPA and will comply with your request to stop phoning you at home or work. If feel the original credit card company and not the attorney or collections company is harassing you then you need to research your state laws and file a complaint. Typically, the Attorney General in your state is the proper authority to contact. You will find a link to all of the  Attorney Generals Offices  by clicking on the link in this sentence.

A collector called me and told me that he was going to call my employer and have my wages garnished. Can they do this? You are entitled to due process under The Constitution of the United States. This means a collector must sue you first and the matter must be heard in front of a judge. If the case goes against you then the judge will issue a judgment, at this point the collector must go back to the court and request a writ of garnishment. Your employer will not garnish your wages until he receive an official document from the court ordering him to do so. This is the procedure in most states; if you find yourself in this situation you should review the Rules of the Court in your jurisdiction or contact an attorney.

Does the debt collector have to accept my partial payments? No, they usually claim that they can't and pressure you into a full payment. They will use very aggressive tactics to scare you in to paying the debt in full as quickly as possible. Never pay them a token payment just to satisfy the collector on the phone and never give anyone your bank account information over the phone. Dishonest collectors have been known to hit someone's bank account more than once which could overdraft your account. Always demand any agreement in writing first before paying a collector, if they refuse to send you it in writing first then hang-up.

If the collections company agrees over the phone to my terms why should I use an attorney instead of myself? You could but the debt collections industry is tricky and an inexperienced debtor can unknowingly make some big mistakes, particularly since the collection industry has a high-turnover rate. Another collector might take over your account or your account might be sold to a third party. Be aware that even a written agreement might not be enforceable if your account is sold to another collection agency. The agreement is not enforceable against the new company unless they choose to accept it. Hiring an attorney to represent you requires the collections company under the FDCPA to deal with your attorney and stop harassing you or possibly find them being sued. Fair Debt Collections Act sec 813 Suing a collector

Can a debt collector call me late at night? No, collectors are required to follow the rules under the Fair Debt Collections Practices Act (FDCPA) section 805. Under this act the collector is required to know what time zone you live in and can only call you between 8:00 a.m. and 9:00 p.m., violations can result in fines and possible law suit against the collection company. If they violate this make sure you keep records of when they called and whom you spoke too.

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