The Fair Debt Collection  Practices Act requires that debt collectors treat debtors fairly by prohibiting  certain methods of debt collection. 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 debts off or at least significantly reduce them to a reasonable level.