Provisions of the FDCPA should be revised

The Fair Debt Collection Practices Act (FDCPA) has stringent provisions to punish the unfair practices of debt collectors. The FDCPA is a federal law that is enforced for the protection of consumer rights against unlawful debt collection practices. According to this Act, the creditor or the debt collection agency that bought your debt from the original creditor has the right to collect the debt legally from you. However, debt collectors must use fair debt collection procedures while attempting to collect from you.

Despite strict guidelines in the FDCPA to protect debtors against the unethical practices, the consumer lawsuits against debt collection process are increasing everyday in our country.

The reasons for this are many. Some of them are due to the FDCPA statute becoming outdated in today's society compared to the society of 1977 when this Act was enacted. The FDCPA was established much before the arrival of cell phones, e-mail and auto dialers. With these technological advancements one is unsure if the FDCPA can be validated with these in the backdrop. The FDCPA prohibits debt collectors from repeatedly contacting debtors for payments. Now e-mailing and auto dialing have added a new dimension to debt collection process.

If we examine carefully, there is another side to debt collection harassment. Creditors sell debts to debt collectors without giving the exact nature of the debt. This often leads to majority of debt collectors being ignorant about the legitimacy of the debt. The whole situation gets worsened by debt collectors attempting to collect debt which is not legally collectible.

While this is a cause of embarrassment for genuine debt collectors, this is like a passport to con collectors to indulge in harassing collection activities. Hence, an increase in debt collection harassment cases.

It has become imperative now to upgrade the FDCPA provisions to accommodate the present progress. The FDCPA must also look at enforcing stricter guidelines and penalties for law violations to ensure fair collection process.

On the other hand a consumer may lose a lawsuit and court may determine that the consumer filed the case in bad faith and for harassment, the court may then award attorney's fees to the debt collector.

Consumers should be aware of their rights under the state and federal law. At the same time they should understand if their case can take the legal standing. Their protection from unfair debt collection processes being the most important, consumers should not file frivolous lawsuits or sue in the hope of not paying for a legitimate debt and end in legal hot waters.

The shift in times definitely has necessitated a change in guidelines of the FDCPA. Going by the times, the Federal Trade Commission (FTC) which enforces the FDCPA should look at the prospect of adding new guidelines to the already existing ones in order to accommodate the latest in technology.

Wage Garnishment

Wage garnishment is upholding a part of your income by your employer to repay your debt. Wages can be garnished by your employer only when there is a court order to garnish them for repayment of your debt.

Wage garnishment is a consequence of the debtor losing a debt case. This happens when you are unable to repay a debt, the creditor sues you and wins the case. The court then advises your employer to garnish the debt payments from your wages.

There are different laws about wage garnishment. State laws may vary from federal law in wage garnishment and whichever law that results in lesser amount to be garnished from your wages has to be executed. For example in some states only 15% of the wages can be garnished.

State laws are not applicable for federal debts. 10% of your salary or disposable income can be garnished to cover federal student loans according to the department of education. Federal agencies and their collectors are eligible to garnish 15% of your wages for non tax federal loans.

The normal incomes that can be garnished are wages, salaries, other monthly wages, commissions and bonuses. Retirement income and pension can also be garnished. However, income like restaurant tips are not considered income and cannot be garnished. If you are supporting a child or spouse, 50% of your income can be garnished. If you are not supporting a child or spouse, 60 % of your income can be garnished. If your payments are 12 or more weeks old an additional 5% can be garnished.

Your employer cannot fire you if a debt of yours attracts wage garnishment. If more debts are garnished there is a risk of your employer throwing you out of job. In case of an improper wage garnishment by your employer or if your employer has knowingly violated the law while laying you off, department of labor can take action against him.

The Fair Debt Collections Practices Act (FDCPA) protects consumers from unethical practices employed by third party debt collectors for collection of debts. The FDCPA is enforced by the Federal Trade Commission (FTC) to ensure the practices of fair debt collection. However, third party collectors engage in unfair practices and may threaten you with wage garnishment. Under the FDCPA you have a right to sue the third party collector who threatens you with wage garnishment. Unless passed by a court of law, wages cannot be garnished nor can anyone threaten you with such an act.

To avoid wage garnishment you should act early. If you are falling behind on your payment, it is best to contact creditors and agree on a payment plan. If the debts go unpaid, the creditor certainly has a right to press charges. Should he win, court can pass a judgment allowing your employer to garnish your wages.

How can you avoid debt collector's harassment?

Creditors engage debt collectors when they cannot recover payment from you. These collectors are third party agents who do not have any direct involvement with the debt. They are enthusiastic about collecting either the amount due or more from you. Hence the harassment begins.

If you fall short on payments, it is better to stay ahead of debt collectors by calling creditors and explaining your predicament. Creditors often understand your commitment if you call and expalin. However, do not commit what you cannot pay. Just make an agreement to pay regularly what fits into your budget. If you can pay more at a later point, it would be welcome.

Debt management consultants can be contacted to act as a go between you and the creditors. These consultants are experts in persuading and may convince your creditors to accept smaller monthly payments from you. This should ensure you a safe and smooth payment plan instead of the harassment.

You have a right in the FDCPA for a fair debt collection even if you owe a debt. You can request the debt collectors for a validation of debt. If they do validate you can further request to stop calling by sending a cease and desist letter to them.

If the debt collectors violate the fair debt collections as laid by the FDCPA, you may consult an FDCPA attorney and sue the collectors.

Avoid Debt Collector's Harassment

The Fair Debt Collection Practices Act (FDCPA) came into practice to regulate the methods used by debt collectors in collecting debt. According to the FDCPA, a debt collector is someone who collects debts on a regular basis. This includes collection agencies, lawyers who collect debts on a regular basis and companies that buy criminal debts and then try to collect them. A debt collector can call during day time on a number agreed by you, and only request for payment. He cannot demand or disturb you in any form. The FDCPA protects you from debt collector harassment.

A debt collector cannot harass you by calling you any time of day and night. He cannot call you at your workplace. He cannot shout or abuse you to pay the debt. If you have asked him orally or in writing not to call you, he has to stop. If you are represented by an attorney he must contact only the attorney. By calling you even after your engaging an attorney, debt collector violates the FDCPA. You can sue the debt collector for this violation. The debt collector cannot intimidate you with dire consequences like threatening to garnish your wages, or get you arrested. These violations are strictly punishable by law.