2008 PRESS RELEASES
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December 18, 2008
HOW TO PROTECT YOURSELF FROM HARASSMENT BY DEBT COLLECTORS
Contact: Marion Horsley, 804.225.3820
In today’s challenging economy, consumers who are struggling to make timely payments on their debts may find themselves harassed by unscrupulous debt collectors. The Virginia Department of Agriculture and Consumer Services’ (VDACS) Office of Consumer Affairs (OCA) says if this describes your situation regarding personal, family or household debts, the Fair Debt Collection Practices Act (15 U.S.C. 1601 et seq.) (Act) may provide assistance in your dealings with a deceptive, abusive or unfair debt collector.
Todd P. Haymore, VDACS Commissioner, explains the significance of the Act. “The Fair Debt Collection Practices Act is a Federal law that calls for fair treatment by debt collectors and bars certain improper collection practices. It addresses many issues that arise in debt collection, including contact restrictions for the debt collector, prohibited activities and what to do in case of a violation. While the Act cannot remove legitimate debts, it can make the collection process less stressful.”
Harassing contact by debt collectors can be a significant problem for you if you are behind in your payments. The Act states that a collector may contact you in person or via phone, fax or mail but may not contact you at work if told not to, or at times and places that are inconvenient, unless you agree to it. To stop all contact, you have to write a letter to the debt collector telling him not to contact you again. The Act stipulates that, after you have sent the letter, the collector cannot communicate with you further except to say that there will be no additional contact or to inform you that some specific action will be taken.
If you have an attorney, the debt collector must contact the attorney instead of you. If you do not have an attorney, the collector may contact others to determine your address, phone number and place of employment but must not tell anyone besides you and your attorney that you have an overdue debt.
In order to resolve the situation, it is essential that you have all the details about the debt you are said to owe. To ensure that you are fully informed, the Act stipulates that the collector must send you a written notice within five days of the initial contact that details the amount of money owed, the name of the creditor and what to do if you don’t think you owe the money. If you write to the collection agency within 30 days of receiving written notice about the debt collection to state that you do not owe the money, the collector may not contact you unless you are sent proof of the debt, such as a copy of the bill.
The Act specifies certain practices that debt collectors cannot use in an effort to collect a debt. They may not use harassment or abuse against you or any third party they contact. For example, they may not annoy you with repeated phone calls, use obscenity, threaten to harm you or publish your name as someone who has an unpaid debt.
Debt collectors are also prohibited from making false or misleading statements such as claiming lawsuits, arrest, garnishment or other actions will take place unless these actions are legal and actually will occur. Debt collectors may not represent themselves as attorneys or government officials. In addition, they may not falsely state the amount of your debt, give incorrect credit information about you to anyone, misrepresent legal or other documents or use a false name.
The Act also prohibits debt collectors from depositing a post-dated check before the stated date, contacting you by postcard, collecting more than you owe unless local law permits an additional charge and seizing your property or threatening to seize it unless the law allows that action.
Click here to find additional information about the Fair Debt Collection Practices Act online.
If you think a debt collector has violated the law, the VDACS Office of Consumer Affairs may be able to assist you. You can speak to a telephone counselor weekdays from 8:15 a.m. to 5 p.m. via the toll-free Consumer Protection Hotline, in Virginia at 800.552.9963 or in the Richmond area at 786.2042. If you decide to file a complaint with OCA against the debt collector, you can download a complaint form at www.vdacs.virginia.gov/consumer/index.shtml.