Being in debt, although a potentially stressful experience, doesn't strip a person of rights. The Fair Debt Collection Practices Act (FDCPA), drafted and enacted in 1978, restricts what debt collectors can do to citizens when attempting to reclaim debts. The FDCPA exists to lessen the number of people filing for personal bankruptcy. Knowing the provisions of the FDCPA can help people avoid bankruptcy and legally contest the actions of unscrupulous debt collectors.
Statute of Limitations
The statute of limitations, according to Credit Infocenter, provides a time limit beyond which debt collectors cannot pursue legal action to reclaim a debt. This time varies by debt and by state. It begins when the debt is incurred. When a payment is made toward the debt, the statute of limitations resets.
The statute of limitations cannot stop collectors from trying to contact debtors by phone or mail.
Appropriate Method of Contact
Debt collectors must abide by laws that state when, where and whom they can contact. They cannot contact people at inconvenient hours or during work. If there is attorney representation, any debt collector must contact him. In other circumstances, the FDCPA prohibits contact by debt collectors to third parties, unless the purpose is to obtain more contact information. According to the Federal Trade Commission, any third party may only be contacted once.
Improper Practices and Methods
Debt collectors have gained a reputation of using harassment and intimidation tactics to get money for their clients. These tactics, illegal under the FDCPA, include threats of arrest, impersonating an official agency or threatening legal action unless the collector has intent to file a lawsuit. In addition, debt collectors must inform debtors of the amounts owed and the parties they represent.
