Know your rights dealing with debt collectors

Jet, Sept 27, 2004

If you don't know your rights, then anyone can abuse them.

Debt collectors can't harass and bully you about money you owe just because you've racked up a little debt (and a lot of guilt), according to the Federal Trade Commission (FTC) and the Fair Debt Collection Practices Act.

If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor," and the people who call when your payments are late (or if an error is made on your account) are called "debt collectors."

Debt collectors can contact you in person, by mail, telephone, telegram, or fax. This you may know already, but what you might not know is because of the Fair Debt Collection Practices Act they are restricted from using certain methods of debt collection. In fact, there's so much on what they can't do it's best to go to www.ftc.gov for a complete list.

Did you know a debt collector can't contact you before 8 a.m. or after 9 p.m., unless you agree? They also can't contact you at work if the collector knows it causes a problem.

There are limits to the way a debt collector can relate to you. Don't let them push you around. They are employees, hired to try to collect a debt, nothing more.

Debt collectors may not harass, oppress, or abuse anyone or any third parties they contact. For example, debt collectors may not: use threats of violence or harm; use obscene or profane language; or repeatedly use the telephone to annoy you; say that you will be arrested; say they will seize or sell your property, or garnish your wages, unless the collection agency or creditor intends to do so, and it is legal to do so.

Debt collectors may not use any false statements when collecting a debt. For example, they may not: falsely imply that they are attorneys or government representatives; imply that you have committed a crime; falsely represent that they operate or work for a credit bureau; indicate that papers being sent to you are legal forms when they are not; or indicate that papers being sent to you are not legal forms when they are.

You can report any problems you have with a debt collector to your state Attorney General's office and the FTC.

You also have the right to sue a collector in a state or federal court within one year from the date the law was violated.

In the end though, the adage "a borrower is servant to the lender" holds true: If you have outstanding debts, pay them. While the Fair Debt Collection Practices Act provides some relief from collectors, it does not relieve you of any legitimate debt you owe.