FDCPA - Fair Debt Collection Practices Act
Are you finding yourself lately, in a sticky situation created by a third party
debt collector?
If the answer is yes, you are not alone and you could use some help from this site
to put a halt to the mayhem created in your life by these notorious debt collectors.
If you know your rights against the third party debt collectors, it would help you
get over the angst you do not deserve to undergo. The
Fair Debt Collection Practices Act or the
FDCPA is created to help you against the illegal tactics of the third party
debt collectors or the debtors themselves, even if you owe them the debt.
The Fair Debt Collection Practices Act offers protection from illegal and unethical
tactics of the debt collectors. A clear understanding of debt collection laws under
the FDCPA will entail you to the power to fight the third party debt collectors.
Stopping the debt collector harassment starts with your knowing your rights as ordained
by the FDCPA, or the Fair Debt Collection Practices Act. The Fair Debt Collection
Practices Act is also known as the Fair Debt Act or FDCPA. The Fair Debt Act or
FDCPA is a federal law and it protects consumers from the debt collector abuse.
Much depends on how one is going to use it. Many states have their own laws on par
with those by the FDCPA and they lay the ground rules for debt collection for creditors
out to collect their debts. Next time a debt collector calls, let your rights under
FDCPA deal with them.
A Debt Collector CANNOT:
- Telephone you an unreasonable number of times
- Telephone you at an unusual time/ unusual place
- Disclose information of your debts to third parties
- Use profane or other abusive language
- Contact you after written notification that you do not want to be contacted any
further
- Claim to be affiliated with any governmental organization
- Misrepresent the character, amount or legal status of a debt
- Threaten of to take any action that cannot be taken legally
- Accuse you having committed a crime
- Threaten or communicate false credit information
- Attempt to collect, until he honors your request to validate
- Use deceptive methods to collect debts
- Call you before 8:00 a.m. or after 9:00 p.m.
- Call you, but not announce who he/she is
- . . . and more
You can:
- Reduce or completely zero out your interest payments
- Avoid or reduce late payment fees
- Combine several loans into a single payment plan
- Get a single, low monthly payment to clear all your creditors
- Get errors in your credit reports rectified
- Get invalid or time-lapsed entries in your credit reports removed
- Get peace of mind
- . . . and more
Posted: 8/25/2010 7:40:47 AM
One of the biggest violations debt collectors commit during their aggressive debt collections is to lie over the phone. There are many lies that the debt collectors speak over the phone. They do not disclose their names while trying to collect from you. Sometimes they give you a false identities.
Under the Fair Debt Collection Practices Act (FDCPA), a debt collector must identify his name and the collection agency he is working for. The FDCPA is a federal act enforced by the Federal Trade Commission (FTC) to protect consumers against illegal and unethical debt collection practices by debt collectors.
Third party debt collectors buy debt from original creditors for a very small price and have nothing to lose money wise.
The FDCPA has clear guidelines to be followed by third party debt collectors engaged by debt collection agencies. They are:
- Calling you at a convenient time
- Informing you of his identity
- Speaking in proper language
- Disclosing debt details
- Giving the original creditor's details
- Listening to consumers if they have a payment suggestion
- Not calling on numbers that have not been mentioned with the original creditor
One of the most frequent violations and one that a debt collector compromises on his integrity is giving a wrong identity. Debt collectors call from unknown or blank numbers or restricted lines and leave voice mails in threatening tones. This is not welcome because if there is a legitimate debt to be collected then there is no reason why a debt collector should resort to such methods.
Giving misleading and ambiguous information also is not a right method because it leads to unnecessary fear and displeasure among the consumers. Often debt collectors lie about calling your office or garnishing your wages. Unless there is a court ruling or they are original creditors, debt collectors do not have the right to garnish your wages. Lying about taking legal action or posing as an attorney are again punishable wrongs of debt collectors.
Lying about the amount of debt owed is again a violation by debt collectors. Debt collectors are required to mention the right amount that you owe. He should not implicate an amount more than you owe to extract more money from you.
Calling for someone else and harassing you for that person, alleging you to be someone else and trying to collect from you is another big lie debt collectors resort to. If it is a case of mistaken identity, collectors are expected to stop once you request them to stop on that pretext. However, if they still continue they are resorting to lies and are violating the FDCPA.
Debtors are protected by the FDCPA for a fair collection of debts. A clear understanding of your rights under the FDCPA is essential to stay away from debt collectors harassment. A little preparation and knowledge of the FDCPA can assure you of a hassle free life.
Posted: 8/20/2010 3:12:20 AM
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.
Posted: 8/25/2010 7:40:47 AM
One of the biggest violations debt collectors commit during their aggressive debt collections is to lie over the phone. There are many lies that the debt collectors speak over the phone. They do not disclose their names while trying to collect from you. Sometimes they give you a false identities.
Under the Fair Debt Collection Practices Act (FDCPA), a debt collector must identify his name and the collection agency he is working for. The FDCPA is a federal act enforced by the Federal Trade Commission (FTC) to protect consumers against illegal and unethical debt collection practices by debt collectors.
Third party debt collectors buy debt from original creditors for a very small price and have nothing to lose money wise.
The FDCPA has clear guidelines to be followed by third party debt collectors engaged by debt collection agencies. They are:
- Calling you at a convenient time
- Informing you of his identity
- Speaking in proper language
- Disclosing debt details
- Giving the original creditor's details
- Listening to consumers if they have a payment suggestion
- Not calling on numbers that have not been mentioned with the original creditor
One of the most frequent violations and one that a debt collector compromises on his integrity is giving a wrong identity. Debt collectors call from unknown or blank numbers or restricted lines and leave voice mails in threatening tones. This is not welcome because if there is a legitimate debt to be collected then there is no reason why a debt collector should resort to such methods.
Giving misleading and ambiguous information also is not a right method because it leads to unnecessary fear and displeasure among the consumers. Often debt collectors lie about calling your office or garnishing your wages. Unless there is a court ruling or they are original creditors, debt collectors do not have the right to garnish your wages. Lying about taking legal action or posing as an attorney are again punishable wrongs of debt collectors.
Lying about the amount of debt owed is again a violation by debt collectors. Debt collectors are required to mention the right amount that you owe. He should not implicate an amount more than you owe to extract more money from you.
Calling for someone else and harassing you for that person, alleging you to be someone else and trying to collect from you is another big lie debt collectors resort to. If it is a case of mistaken identity, collectors are expected to stop once you request them to stop on that pretext. However, if they still continue they are resorting to lies and are violating the FDCPA.
Debtors are protected by the FDCPA for a fair collection of debts. A clear understanding of your rights under the FDCPA is essential to stay away from debt collectors harassment. A little preparation and knowledge of the FDCPA can assure you of a hassle free life.
Posted: 8/20/2010 3:12:20 AM
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.