Given the difficult economic times, many Consumers have had difficulty making payments on Consumer debts, such as medical or credit card debt.  When that occurs, it is not unusual for the creditor to begin attempts to collect on that debt either by making direct contact with the Consumer or by turning the debt over to some third-party for that collection effort.  The federal Fair Debt Collection Practices Act contains many protections for the Consumer under those circumstances.

Under that act, the following are actions that the creditor or the third-party collector may NOT take when making that collection effort:

  • The creditor or debt collector may not telephone the Consumer at the Consumer’s place of employment unless the Consumer has provided that telephone number to the creditor or debt collector as a contact number.
  • The creditor or debt collector may not send written collection notices to the Consumer’s place of employment unless the Consumer has provided that address to the creditor or debt collector as a contact address.
  • The creditor or debt collector may not threaten the Consumer with arrest and criminal prosecution.
  • The creditor or debt collector make not make repeated calls in one day if the creditor or debt collector has made actual contact with the Consumer on that day.
  • The creditor or debt collector may not share information regarding the alleged debt with the Consumer’s neighbors, friends, or family members for purposes other than location information.
  • Communications from the creditor or debt collector may not contain threatening and scurrilous remarks or routinely consist of a series of such statements constituting unfair and unconscionable tactics.  False, deceptive and misleading statements are prohibited.
  • The creditor or debt collector may not threaten legal action unless it has the right, authority, immediate ability or intention to actual bring such legal action.
  • The creditor or debt collector may not threaten to increase the amount of the alleged debt unless the contract between the creditor and the Consumer allows for that increase.
  • The creditor or debt collector may not have add fees, penalties, or charges to the Consumer’s account unless the contract between the creditor and the Consumer allows for those fees, penalties, or charges.
  • If the Consumer requests in writing that documents verifying the debt be provided, the creditor or debt collection agency may not resume collection activity before or without providing verification documents, nor may the creditor or debt collector report any negative information regarding the alleged transaction to the Consumer’s credit reports until such verification documents have been provided.

On the other hand, there are actions under the act that the creditor or debt collection MUST take:

  • The creditor or debt collection must communicate with the Consumer only in writing via the United States Postal Service if the Consumer makes that request in writing.
  • If the collection effort is being made by a third-party debt collector, ALL CONTACTS with the Consumer must state, “I am a debt collector, this is an attempt to collect a debt, and any information obtained will be used for that purpose.”
  • If the collection effort is being made by a third-party debt collector, the debt collector must send written notice of the Consumer’s Rights within five days of the collector’s first contact unless full disclosure of all required information is recited in the initial contact.
  • If the collection effort is being made by a third-party debt collector, the collector must inform the Consumer of the right to dispute this alleged debt within 30 days of the collector’s initial notification.
  • If the collection effort is being made by a third-party debt collector, the collector must provide the name and address of the original creditor and the account number on that underlying account if requested in writing by the Consumer.
  • If the Consumer requests in writing, the creditor or debt collector must validate the alleged debt by providing documentation which addresses the actual facts disputed by the Consumer.  It is not sufficient for debt validation for the creditor or debt collector to merely provide a copy of a previous billing statement.

Each of the referenced “musts” and “must-nots”, if not properly performed by the creditor or debt collector, may constitute a separate violation of the Fair Debt Collection Practices Act.  The act provides for a $1,000 per offense penalty for those violations.