Creditors can try to collect what they think is due them in many different ways: Many begin with calls to pressure the debtor into making payments as quickly as possible. Often the calls can be relentless. Creditors can bring a lawsuit to try to obtain a legal judgment against the debtor. Once they have a judgment, they can try to collect by trying to seize some of your assets. Many creditors hire debt collection companies to try to collect the debt.

Because many creditors, especially many of the debt collection services, abused the law; the Fair Debt Collection Practices Act (FDCPA) became a law in 1978 to try to regulate the conduct of debt collection agencies.

The aims of the act were to make sure the efforts of the collectors didn’t constitute abuse, were open and non-deceptive and bottom line were fair. The FDCPA provides guidelines for how creditor collectors should act. The law also provides remedies including the right to sue the debt collector if they violate the law. The law is overseen by the Federal Trade Commission.

Congress enacted the law because it recognized that debtors who can’t pay their bills on time have problems to begin with. The pressure of dealing with collectors who didn’t act fairly could make the debtor’s financial situation worse. It also could contribute to job loss, loss of privacy and to marital instability.

Who does the act apply to?

The main target of the act are third party debt collectors – mainly collection agencies who act on behalf of the creditor. Many states also have their own credit laws that may include the original creditor.

The state disciplinary laws of Connecticut govern the conduct of attorneys who try to collect on behalf of a creditor. The Act applies only to personal and family debts, not to business debts. Your local debtor’s right lawyer in Connecticut can tell you whether the Act applies to the person or entity that is trying to collect from you.

What Types of Conduct are Prohibited?

The FCDPA lists many types of conduct as “abusive and deceptive.”

• Phone calls: You can’t be contacted between 9pm and 8am local time.
• If you notify the collection agency in writing that you don’t want to be contacted any further or that you won’t pay the debt, then the collection agency has to stop calling you. They can proceed to try to collect the debt through filing a lawsuit.
• The call can’t be with the intent to annoy, harass or abuse the debtor. In short, the call should be a professional attempt to get information about your ability to pay the debt and not to make you feel more uncomfortable than you already are.
• Calls to your place of employment: If the debt collector is informed that the employer doesn’t accept personal calls at work or debt collection calls at work, then the debt collector has to stop calling at work.
• You can’t be called when the debt collector knows you have a lawyer. This is a big reason why it’s wise to retain an attorney’s services. They lawyer will handle these calls for you.
• You can’t be called after the consumer/debtor has challenged the validity of the debt.
• Dishonesty: The debt collector has to deal with you honestly. He/she can’t use deception such as claiming they are associated with law enforcement or a lawyer when they’re not. They can’t over-bargain by saying you owe more than they know you really do.
• Language: The debt collection agency can’t use profanity or abusive language.

In addition to improper phone conduct, the debt collection agency can’t do these things as well:

They can’t:

• Discuss your debts with third parties (other than your spouse or your lawyer). They can only contact neighbors to try to locate where you live, not to discuss your debt. They also have to use legitimate means to find you – calling multiple neighbors when they know where you already live is not allowed.
• Threaten legal actions when legal actions isn’t allowed (for example, if the statute of limitations for collecting the debt has expired).
• Ask for more than what you owe such as asking for fees and penalties when none are warranted.
• Publish your name on a “bad debt” list.
• Report false information on your credit report
• Try to make your debt public improperly such as by contacting you with a postcard instead of a letter.

What Must the Debt Collection Agency Do?

Debt Collectors must do the following:

• Say who they are, that they are a debt collector and that they’re attempting to collect a debt – in every communication.
• Identify the creditor by name and address when the consumer demands that information in writing.
• Tell the consumer that he/she has the right to contest the debt by asserting the consumer doesn’t owe the debt or that the amount is disputed. The debt collector has to send a letter within five (5) days of the initial communication and let the consumer know that the consumer has the right to request validation of the debt, in writing, within 30 days.
• The creditor can file a lawsuit – but only where the consumer lives or where the debt was incurred.

What Rights Does the Debtor Have?

In addition to requesting validation of the debt, the consumer can bring a lawsuit against violators of the Fair Credit Debt Reporting Act.

Damages for each violation include actual damages, statutory damages of up to $1000 for each violation, legal fees and costs.