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The Fair Debt Collection
Practices Act requires that debt collectors treat debtors fairly by prohibiting certain methods of debt collectio
 n. The law
does not forgive any legitimate debt. This article answers commonly asked questions about creditors and debtors rights under the Fair Debt Collection
Practices Act.
Who is a debt collector?
A debt collector is any person, other than the
creditor, who regularly collects debts owed to others. Under a 1986 amendment to the Fair Debt
Collection Practices Act, this includes attorneys who collect debts on a regular basis.
What debts are covered?
Personal, family, and household debts are covered under the Act. This
includes money owed for the purchase of an automobile, for medical care, or for charge accounts.
How may a debt collector contact a debtor?
A collector may contact a debtor in person, by mail, telephone, telegram, or
FAX. However, a debt collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless the debtor agrees. A
debt collector also may not contact a debtor at work if the collector knows that the employer disapproves.
Can you stop a debt collector from contacting you?
You can stop a collector from contacting you by writing a letter to the
collection agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further
contact. The agency may notify you if the debt collector or the creditor intends to take specific action.
May a debt collector contact anyone else about a debt?
If you have an attorney, the debt collector may not contact anyone other
than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors
usually are prohibited from contacting such permissible third parties more than once. In most cases, the collector may not tell anyone other than you
and your attorney that you owe money.
What must the debt collector tell the debtor about the debt?
Within five days after you are first contacted, the collector must send you a
written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.
May a debt collector continue to contact a debtor if the debtor believes he does not owe money?
A collector may not contact you if, within 30 days after you are first
contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent
proof of the debt, such as a copy of a bill for the amount owed.
What types of debt collection practices are prohibited?
Harassment. Debt collectors may not harass, oppress, or abuse anyone. For
example, debt collectors may not:
- Use threats of violence or harm against the person, property, or reputation;
Publish a list of consumers who refuse to pay their debts (except to a credit bureau);
Use obscene or profane language;
Repeatedly use the telephone to annoy someone;
Telephone people without identifying themselves;
Advertise your debt.
False Statements. Debt collectors may not use any false statements when
collecting a debt. For example, debt collectors may not:
Falsely imply that they are attorneys or government representatives;
Falsely imply that you have committed a crime;
Falsely represent that they operate or work for a credit bureau;
Misrepresent the amount of your debt;
Misrepresent the involvement of an attorney in collecting a debt;
Indicate that papers being sent to you are legal forms when they are not;
Indicate that papers being sent to you are not legal forms when they are.
Debt collectors also may not state that:
You will be arrested if you do not pay your debt;
They will seize, garnish, attach, or sell your property or wages, unless
the collection agency or creditor intends to do so, and it is legal to do so;
Actions, such as a lawsuit, will be taken against you, which legally
may not be taken, or which they do not intend to take.
Debt collectors may not:
Give false credit information about you to anyone;
Send you anything that looks like an official document from a court or
government agency when it is not;
Use a false name.
Unfair Practices. Debt collectors may not engage in unfair practices when
they try to collect a debt. For example, collectors may not:
Collect any amount greater that your debt, unless allowed by law;
Deposit a post-dated check prematurely;
Make you accept collect calls or pay for telegrams;
Take or threaten to take your property unless this can be done legally;
Contact you by postcard.
What can you do if you believe a debt collector violated the law?
You have the right to sue a collector in a state or federal court within one
year from the date you believe the law was violated. If you win, you may recover money for the damages you suffered. Court costs and attorneys fees
also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000.00, or one percent of the
collectors net worth, whichever is less.
Where can you report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney
General's Office and the Federal Trade Commission. Many states have their own debt collection laws and your Attorney General's office can help you
determine your rights.
Texas Debt Collection Act
Texas has very specific guidelines regulating what debt collection agencies
can and cannot do when attempting to collect unpaid debts. The Texas Debt Collection Act applies to creditors that are collecting their own debts. Most of
these regulations are set forth in the Texas Finance Code and the Texas Deceptive Trade Practices-Consumer Protection Act. Under Texas law debt, collectors cannot:
Falsely accuse the debtor of fraud or other crimes
Use or threaten to use violence or other criminal acts to collect the debt
Threaten arrest of the debtor, or threaten to repossess or seize property of
the debtor without proper court proceedings
Make collect telephone calls to the debtor without disclosing the true name
of the caller before the charges are accepted
Harass the debtor or the debtor's family with frequent communication, by
calling anonymously, or making frequent or continuous calls
Use profane or obscene language
Mail any documents to the debtor that falsely appear to be from a court or
other official agency
Misrepresent the amount of the debt or falsely claim that legal action has been taken.
How can we help You?
We can assist you in obtaining damages against a creditor who has violated
your rights. Often the damages recovered can assist you to pay yours febts office or at least significantly reduce them to a reasonable level.
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