Home » Why consumers should not pay debt collectors Part II

Why consumers should not pay debt collectors Part II

In Part I of this article I explained the process regarding how debt collectors get access to credit card accounts to receive payment.  Now I will go into what specific parts of the FDCPA statue, consumers can use as leverage to fight debt collectors legally.   There are 19 law statues within the FDCPA that puts forth how a debt collector can pursue a debt, although these statues have been put in place many debt collectors still do not follow the law.  That’s why it is important that consumers who have defaulted debts learn why these statues are important.  Knowing the law can help to defeat lawsuits, garnishments, judgments and negative credit report trade lines.  The three most important statues of the FDCPA are sections 805, 806 and 809.

Communication in connection with debt collection

FDCPA section 805 covers how a debt collector can communicate with a consumer.  The only time of the day a debt collector can call your home is during 8am to 9pm.  Debt collectors are not suppose to contact you at your job, they are not suppose to contact your neighbors or family members, which are third parties.  If a consumer notices that a debt collector violated this statue, a consumer should keep track of all calls and report it to either the FTC or their state’s attorney general’s office.   If the consumer has retained an attorney to handle the legal matter regarding the debt, the attorney is the only third party a debt collector can contact.  Once the consumer has retained an attorney all future correspondences whether oral or written has to be forwarded to consumer’s attorney.  To stop any communications to collect on a debt, a consumer can send the debt collector a cease and desist letter which will stop any further harassment, keep in mind a cease and desist letter will not stop a debt collector from pursuing the debt in court.

Harassment or abuse

Harassment or abuse by a debt collector is the area of the FDCPA which is in section 806.  Consumers should understand that this statue explains why a debt collector cannot harass, threaten, oppress or abuse a consumer.  When a debt collector contacts a consumer over the phone, the debt collector is only suppose to discuss why they can legally collect on a debt.  If a consumer feels that the debt collector representative is using language that is making him or her feel uncomfortable, it’s important that a detail record of communication is documented.  Also keep in mind that debt collectors are not suppose to curse or swear over the phone, and constant or repeat calling on a continuous basis is not accepted as well.

Debt Validation

The third and final statue of the FDCPA which is 809 is the proving the validity of a debt.  A debt collector has 5 days after the first initial communication to provide a consumer with the name of the creditor to whom is owed, and a statement that the consumer has the right to know the validity of the debt.  Validity of debt also known as debt validation is a process where as a debt collector has to prove that they can legally collect on a debt.  If a debt collector cannot prove their role in collecting on the debt which may be through either assignment from the original credit card issuer they cannot collect on the debt.  Consumers must demand and leverage the laws and statues of the FDCPA;  the FDCPA is a government rulebook that consumers can use for their own defense to fight debt collection companies.

 

 

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