Debt Collectors are mandated by federal law (The Fair Debt Collections Practices Act) to abide by rules and regulations regarding their communication with consumers. The reason for the law, which was originally enacted in 1977, was to protect consumers from unfair debt collection practices. This includes, abusive behavior, having to prove that the debt is valid and giving consumers the ability to challenge and remove inaccurate debt collections from their Credit Report.
Are You Currently Experiencing Unfair Debt Collection Practices?
Unfair Debt Collection Practices happen often – You’re not alone!
Rises in violations and unfair, illegal debt collection complaints to The Federal Trade Commission (FTC) have skyrocketed with chart breakers of 180,000 consumer complaints; with accusations that collectors have gone as far as contacting the consumer’s family, friends, employers, and even name-calling or threats of criminal prosecution, physical violence, and cyber stalking! A study done in 2010 found that 30 million Americans were battling with Medical Collections that were proved to be paid, yet the credit agencies and debt collectors REFUSED to remove inaccurate information from the consumer’s credit report; restricting and embarrassing the consumer from gaining the credit they rightfully deserve. Often times leaving consumers denied for home loans or paying unnecessarily high interest rates on credit cards and/or car loans.
Unfair Debt Collection – Know Your Rights As A Consumer
It is ILLEGAL for the debt collectors, who often buy ‘junk debt,’ for pennies on the dollar, to use such exploitation and force to collect a debt IF they have no legal proof or documentation that you owe that particular collection agency. Some states require that you have a written contract to have an obligation of debt to any person or company. It is also highly illegal for collection agencies to contact your place of employment, a third-party, or a phone number that is claimed as a work phone. The are not allowed to share ANY information about the “debt” with anyone but yourself. Debt collectors will use unfair debt collection practices to attempt to collect debt from consumers. They also must present their identity correctly before they proceed to attempt collect; it is illegal for false representation of what their purpose of communicating really is! Remember, the debt collectors that have your phone ringing off the hook are paid on a commission; they receive a paycheck from YOU if you pay them. We DO NOT recommend that you pay a debt collector before consulting with a professional. Just check out what happens when debt collectors can’t validate a debt.
What to do if you’re a Victim of Unlawful or Unfair Debt Collections Practices:
Do not pay an outstanding collection, until you talk to a professional first. Believe it or not, you most likely do not owe the creditors ANYTHING; and if unlawful tactics are being used against you (as the debtor) you may be entitled to a settlement for every violation (or, you can use the law violations as leverage to get the debt collector to remove the account from your credit report)! Also, filing a direct complaint with the FTC let’s them know that unconstitutional practices are still being used. You can also file a complaint with the CFPB (Consumer Financial Protection Bureau).
If you have questions, please reach out to us: 1-800-216-2725 or Contact Us: Here
Citations:
“Fair Debt Collection Practices Act CFPB ANNUAL REPORT 2012 .” . N.p., 1 Mar. 2012. Web. 19 June 2014. <http://files.consumerfinance.gov/f/201203_cfpb_FDCPA_annual_report.pdf>.
“FTC: Unfair Debt Collection Practices on the Rise.” Debtorg News. N.p., 24 July 2012. Web. 19 June 2014. <http://www.debt.org/2012/07/24/debt-collectors-on-the-rise/>.
