Collection agencies exist to recover debts owed by consumers to creditors. Collection agencies may be collecting on behalf of the creditor, or they may have purchased your debt for pennies on the dollar. Some collectors buy debt that is years old and try to take any means necessary to make consumers pay their debts. It is for this reason that the federal government created the Fair Debt Collection Practices Act (FDCPA) to protect consumers from abuse at the hand of collection agencies.
Communication
Under the FDCPA, section 805, collection agencies may not contact the consumer by telephone before 8 a.m. or after 9 p.m. This time frame applies to the consumer's location, not the location of the collection agency. Debt collectors are also prohibited from calling relatives, friends, neighbors or anyone else and discussing the debt with them. If a collection agency receives a letter from the consumer stating that phone calls are an inconvenience, the debt collector must by law cease telephone communication with the consumer.
Harassment
Collection agencies are prohibited under section 806 of the FDCPA from harassing consumers. Harassment includes threats of physical violence, threats of harming a person's reputation or belongings and the use of foul language. Collection agencies are also prohibited from calling consumers repeatedly just to annoy them. Threatening to ruin your credit is a violation of the FDCPA.
False or Misleading Statements
Collection agencies may not threaten actions that are not legally enforceable such as threats of arrest or imprisonment for failure to pay a debt, under the FDCPA, section 807. Collectors may not impersonate law enforcement, or claim to be an attorney if they are not. Collectors must accurately report the type and balance of the account both to the consumer and the credit bureaus. Also, any correspondence must inform the consumer that it is communication from a debt collector.
Unfair Practices
The FDCPA states in section 808 that collection agencies are prohibited from adding additional fees or charges to the balance unless it is legally allowed by your particular state, or if it was in the initial agreement. Collectors are also not allowed to use any sort of language or symbols on envelopes which would distinguish it as communication from a debt collector. Seizure of property is prohibited unless a judgment has been granted on behalf of the collector.
Validation
Collectors must mail written notification with the details of the debt in question. Upon the consumer's request within 30 days of the initial communication, collectors are required to mail validation of the debt to the consumer. Failure to do so invalidates their claims, and can be grounds for complete removal of the item from a consumer's credit report.
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