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LAW NOTES
If you
ever have problems with a debt collector, you should know that there is a
federal law which requires you to be treated fairly. Depending on where you
live, state and Tribal laws might also provide protection. The federal law is
known as the Fair Debt Collection Practices Act. The law does not erase
legitimate debts that you owe. Rather, it limits the ways that can be used to
collect payments. This article, and subsequent articles, will provide a basic
explanation of your rights under the Act.
Coverage
of the Act: The Act applies to personal, family, and household debts, such as
car payments, medical care, and credit card accounts. The Act provides
protections against only debt collectors who regularly collect debts owed to
others, such as collection agencies. It does not cover creditors who collect
their own debts. The Act applies to attorneys who collect debts on a regular
basis.
Limitations on Debt Collector Contact: The Act allows a debt collector to
contact you in person, by mail, telephone, or telegram. However, the Act
forbids a debt collector from contacting you at unusual or inconvenient times or
places, such as before 8:00 a.m.
or after 9:00 p.m. A debt collector may not contact you at work if the
collector has reason to know that your employer disapproves.
You can
stop a debt collector from contacting you by writing to them and telling them to
stop. Once the letter is received, the collector may not contact you again
except to inform you that they intend to take some specific action against you
or to tell you that there will be no further contact.
If you
notify the debt collector that you have an attorney, the collector can only
contact the attorney. If you do not have an attorney, the collector is allowed
to contact other people, but only to find out where you live or work, and in
most cases is not allowed to tell those other people that you owe money.
Usually, collectors are forbidden from contacting any other person more than
once.
If,
within 30 days after you are first contacted, you notify the collector in
writing that you do not believe you owe the debt, the debt collector must stop
contacting you. However, a collector can start collection activities again if
you are provided with proof of the debt, such as a copy of the bill.
What The
Debt Collector Must Tell You About The Debt: Within five days after the first
contact with you, the collector is required to send you a written notice telling
you the amount of money you owe; the name of the creditor; and what to do if you
think you do not owe the money.
NOTE: Dakota Plains
Legal Services is providing this information in partnership with this newspaper
as a public service. This article is not intended as legal advice. Always talk
to a lawyer before taking any legal action.
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