Frequently Asked Debt Collection Questions & Answers
Debt Collection FAQs
Having financial problems is a difficult and stressful situation. If you are also dealing with a debt collection agency, the pressure can be overwhelming. The Federal Trade Commission is in charge of enforcing the Fair Debt Collection Practices Act (FDCPA). This act protects consumers from unfair and deceptive collection methods.
Here we offer some of the most frequently asked questions regarding debt collectors as well as practical answers to help you get through this tough financial period.
What debts are covered under the FDCPA?
The Act covers household, personal and family debts, including money owed on a car loan, medical bill, mortgage and credit cards. It does not cover bills owed to run a business.
When is a debt collector allowed to contact me?
Unless you agree to it, a debt collector can only contact you between the hours of 8am and 9pm. If your employer prohibits call to the workplace, a debt collector may not contact you at your place of employment. You must inform the debt collector about this policy, either verbally or in writing.
Is it possible to stop a debt collector from contacting me?
You might want to consider speaking with the debt collector initially to find out the specifics about why they are contacting you. If, after speaking with them, you decide you don’t want them to contact you again, tell the collector (in writing) to stop contacting you.
Make a copy of your letter and send it by certified mail (return receipt requested) to the debt collection agency. Once the agency receives your notification, they cannot contact you unless it is to verify that they will not call you again. Sending this letter to the debt collection agency does not release you from what you owe. You can still be sued to collect the debt.
Can a debt collector talk to other people about my debt?
If you have an attorney representing you about this debt, the debt collector is required to speak with the attorney, not to you. Collectors may only speak with other people in an attempt to get a phone number or address for you. Normally, they are allowed to contact a third party only once.
What information does the debt collector have to give me about the debt?
Within five days of speaking with you, the debt collector must send you written notification stating how much money you owe, the name of the creditor seeking payment, and steps to take if you want to initiate a dispute.
What are debt collectors not allowed to do?
Debt collectors are not allowed to harass or threaten you or any third party they contact regarding you. They may not make repeated phone calls in an annoying manner or use obscene or profane language. They may not make threats, either directly or implied, towards you.
They also may not claim that they are attorneys or work for the government. They cannot accuse you of committing a crime by owing a debt. Debt collectors may not give false information to anyone, including credit bureaus.
I receive federal benefits. Can they be garnished?
Many federal benefits are excluded from garnishment. These include: social security benefits, veteran’s benefits, service member’s pay, military annuities and survivor’s benefits, and student assistance.
What happens if a debt collector sues me for payment?
If a debt collector files a lawsuit against you for the money owed, you must respond to the lawsuit. You can do this either personally or through an attorney. To preserve your legal rights, you must notify the court by the specific date mentioned in the lawsuit.
If I think a debt collector has used questionable methods when dealing with me, what can I do?
You can report any problems or concerns to your state Attorney General’s office and to the Federal Trade Commission.
