Learning About the Fair Debt Collection Practices Act
All consumers, in one way or another, have to deal with lenders. In some cases, lenders pass on the collection of 
debts to a debt collection agency. This is especially true when a borrower fails to respond immediately or fails to get in touch with his creditors on time. When debts are long overdue, a debt collector may resort to harassment or unfair tactics to force a borrower to pay. Nevertheless, although the borrower has the responsibility to pay, this doesn’t mean that he or she should be treated unjustly.
Borrowers still has the right to privacy and fair treatment. The Fair Debt Collection Practices Act (FDCPA) was passed in 1978 to protect consumers against illegal debt collection practices of debt collectors. If you think that your right as a borrower has been violated, don’t be afraid to take action. Report the debt collector to your State Attorney General’s office and file a complaint to the FTC (Federal Trade Commission). What are some of the provisions included in the FDCPA? Let’s consider some of them:
The notification provision. Any debt collector who intends to collect payments from you should send you an advanced notification. You should be given the complete list of your rights in reference to the FDCPA.
The right to dispute. Borrowers can dispute inaccurate charges or erroneous information within 30 days after notification. If you think there are errors in your billing statement, contact your creditor right away to clarify the issue. Send a dispute letter to the creditor in question via registered post mail. Upon receiving your dispute letter, your creditor must take the necessary investigation and stop all its collection activity until the matter has been cleared.
The right to privacy. A debt collector cannot disclose any information about debt to anyone except the borrower himself. Debt collectors should not contact your relatives, friends or neighbors to try to collect repayments. Collectors must not call in your work place especially after being advised not to. They should not call at your home before 8am or after 9pm. They cannot use postcards to notify you about your debts. If a collector threatens to disclose your debts in a public listing, it is a major violation of the FDCPA.
The right to know truth. Debt collectors should not disguise themselves as another entity (ex. a government prosecutor, an FTC representative, etc.) to force a borrower to pay. They should not use false threats (ex. a legal suit has been filed, your property would be repossessed, criminal charges, etc.) to impose fear on the borrower. Always check if the collector is telling you valid information.
The right to respect. Debt collectors should not use abusive or profane language, threats, or any form of harassment against you. If you have sent your creditor a letter to stop its collection from you, they should do so. Nevertheless, take note that this doesn’t exempt you from your duty to repay your debts. Even if a creditor has stopped its collection activity, you should take the initiative to pay off your debts at the soonest possible time.
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