Who are the debt collectors by law?
A debt collector is any agency or person, who regularly collects debt owed to others. It is anybody other than the lender or creditor himself. Attorneys who collects debt on a regular basis are also included under a 1986 amendment to the Fair Debt Collection Practices Act.
You can call a person a debtor when:
- He owes money on a personal loan.
- He uses a credit card.
- He is paying on a home mortgage.
The definition may vary from one expression to the other but the concept will remain the same. A Debt collector collects the debt from the debtor.
What does law say about the procedure?
It is the responsibility of a debt collector to collect the debt from the debtor
but through fair and rightful means. Any forceful means to collect debt is
not allowed under the Fair
Debt Collection Practices Act. You must be aware that under any situation
or circumstances, the Fair Debt Collection Practices Act requires the debt
collectors to treat you fairly by prohibiting certain methods of debt collection.
If I am not able to pay the loan, can they harass me?
The law doesn't permit the debt collectors to harass debtors under any situation. Debt collectors are restricted from using threats of violence or causing harm against the person, property, or reputation. They can't use abusive language with the debtors. Also they can't publish the debtors name in public. They can't harass you by calling again and again. The law gives you all types of protection.
Debt collectors are not allowed to engage in unfair practices when they try to collect a debt.
They are not allowed to:
- Collect any amount greater than 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 away your property unless this can be done legally
- Contact you by postcard.
- They are not allowed to make false statements on government policies.
- They are not allowed to introduce themselves as government representatives or some responsible chair holder.
If any debt collector tries to break the law, the outcome can be severe. You have the right to sue them in a state or federal court within 1 year from the date you think the law was violated. If you win, you will recover the money for all the damages you have suffered. You can also recover the court costs and attorney fees. A group of people also have the right to sue a debt collector and recover money for damages up to 500,000 dollars, or 1 % of the collector's net worth, whichever is less. The Fair Debt Collection Practices Act might protect you from all the probable harassments of a debt collector. The law however cannot protect you from debts or forgive your debt amounts.
