All About Debtor’s Rights

Answer 1

Many people who find themselves in trouble with too much debt and no money available to pay it don’t know that they have many rights afforded to them under the law. When creditors start calling, it can quickly become stressful and a debtor may not even realize that they are being contacted illegally or are being harassed or threatened with illegal debt collection practices. It’s important for those who are in debt and have been taken to collections to understand their rights as a debtor.

There is a federal statute, known as the Fair Debt Collection Practices Act, that gives rights to debtors who are being contacted by creditors. Creditors who violate any portion of this act can be sued by the debtor. There are many practices that a debt collector may not engage in when attempting to collect a debt, but some of them still do on a regular basis.

Some illegal practices include:

-Contacting a third party about a debt. Debt collectors can contact third parties in order to find a debtor, however, they can not speak to that party regarding the debt. It’s important to note that spouses are not considered a third party and a debt collector can speak freely with the spouse of a debtor. Employers are considered a third party.

-Debtors can not threaten lawsuits or wage garnishments unless they actually intend to follow through on the threat. Debtors must be sued in their home state, so a threat to be sued in another state is always false and illegal.

-When a debt collector contacts a debtor by phone, he must identify himself as a debt collector and advise you that he is calling to collect a debt. Similarly, all written communication from debt collectors must clearly state that the purpose of the communication is to collect a debt.

-If a debtor retains the services of an attorney, and notifies the debt collector in writing, they may no longer contact the debtor directly and must direct all communication to the attorney. This is an extremely useful law to debtors who are in the process of filing for bankruptcy.

The above is not a full list of all laws that pertain to a debtor’s rights. Those who are in debt should read the Fair Debt Collection Act to make sure that their rights are not being violated. Debtors who believe their rights have been violated should contact a qualified attorney to ensure that their rights are being protected.