Because of this, you may want to hire a Chicago credit repair consultant to help you manage your debt and protect you against unfair and illegal collection efforts.
If a debt collector violates the FDCPA, they can be held liable for any damages they cause. The following are some of the prohibited practices that debt collectors are not allowed to engage in under the FDCPA:
Harassment
This includes threatening, intimidating, or using profane language–more than 40% of reported violations are related to abusive language or threats of violence. Additionally, debt collectors can not call past 9:00 PM or make repeated calls throughout the day.
Dishonest Statements
Debt collectors are not allowed to lie about the amount you owe, your legal rights, or the consequences of not paying a debt. They cannot present themselves as attorneys, claim that they are affiliated with the court, or say that a lawsuit has been filed against you when it hasn’t.
Collecting More Than You Owe
Debt collectors are allowed to collect only the balance you owe. They cannot collect interest, fees, or other charges that have not been authorized by a court or in the original contract.
Installment accounts cannot be collected in one lump sum, and debt collectors are not allowed to threaten to take possession of your property unless they have the legal right to do so.
Failure to Send the Consumer a Written Notice of the Debt
Debt collectors must provide written notice of the debt within five days of contacting the consumer for the first time. This must include the amount owed, the name of the creditor, and information on how to dispute the debt–failure to provide this notice is a violation of the FDCPA.
Evidence
The FDCPA also prohibits debt collectors from misrepresenting their evidence against a consumer. This includes providing misleading documents or fabricating information to make it appear like they have more evidence than they actually do.
Collectors must provide a document of an unpaid bill or proof of a court judgment before they can take legal action against a consumer.
Garnishing Wages
Creditors are not allowed to garnish wages without filing a lawsuit and securing a court order. Garnishing wages involves taking part of an individual’s paycheck to pay off a debt–this violation of the FDCPA can result in serious repercussions for the debt collector, such as large fines or even jail time.
Misleading Threats
Debt collectors cannot threaten to arrest or sue you if they do not have the legal right to do so. Debt collectors are also prohibited from using misleading tactics to scare or intimidate consumers into paying their debts; for example, they cannot claim to be law enforcement officers or threaten to reveal personal information about you.
What To Do When a Collector Violates The FDCPA
If a debt collector violates the FDCPA, you have the right to file a complaint with the FTC. In addition, you may be able to seek damages for any emotional distress caused by the debt collector’s actions.
The FTC is committed to protecting consumers from debt collection abuse. If you believe that a debt collector violated the FDCPA, contact your state attorney general’s office and the FTC to report the violation.
Wondering how installment accounts affect credit scores? Check out our recent post.