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Franklin Debt Relief, LLC is a member of (TASC) The Association of Settlement Companies. This trade association has developed a standardized industry disclosure for consumers.
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Debt Collection Overview Call Today: (877) 274-1260 |
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Fair Debt Collection FAQs What law dictates what collection agencies can and cannot do?-The FDCPA (Fair Debt Collection Practices Act) What does the FDCPA prohibit? -In general the FDCPA prohibits abusive actions by debt collectors. Does the FDCPA pertain to original creditors? -No, although some states have passed legislation applying the same laws to original creditors. What states have passed laws ensuring that original creditors abide by the FDCPA as well? -California, Washington D.C., Florida, Iowa, Maryland, Massachusetts, Michigan, New Hampshire, New York (and NYC), North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Vermont, West Virginia, and Wisconsin. So in every other state the original creditor can do pretty much whatever they want? -No, some states have enacted legislation that prohibits specific actions by the original creditor as well, but they are not as sweeping as the FDCPA. Where can I find my state's collection laws? -We have attempted to summarize them on our website. Follow this link and click on your state: http://www.franklindebtrelief.com/debt-consolidation-resources.html Does the FDCPA apply to attorneys collecting debts? Yes. What can I do if a collector violates the FDCPA? Contact an attorney that specializes in consumer advocacy. Apex Law Group is one attorney network I'm familiar with that sues debt collectors for FDCPA violations. What happens if I win? You can recover damages, plus $1000, and the collector has to pay for any court and attorney expenses. What should I do if I don't feel like taking a collector to court, but I still want them to be punished? Complain to the Attorney General of the state in which they are located plus the Attorney General in your state (assuming it's different). Also, file a complaint with the FTC (Federal Trade Commission). What actions does the FDCPA specifically prohibit? - Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information (where the debtor lives, works, phone number, etc.) about the consumer cannot-- (1) identify his or her employer unless specifically requested to do so (2) state that such consumer owes any debt; (3) communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information; (4) communicate by post card; (5) use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt; and (6) If debtor appoints an attorney (or credit counselor, debt negotiator, etc.) communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to the communication from the debt collector. When communicating with the debtor, debt collectors cannot: (1) call before 8 AM or after 9PM (2) call debtor's employer if debt collector has reason to believe the employer prohibits such calls Unless given consent or allowed to by court order, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, unless: (1) to advise the consumer that the debt collector's further efforts are being terminated; (2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or (3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy. Use violence or threaten violence or other criminal means to harm the physical person, reputation, or property of any person. Use obscene or profane language or language the natural consequence of which is to abuse the hearer or reader. Publish of a list of consumers who allegedly refuse to pay debts (aka "dead beat list"), except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)1 of this Act. Advertise for sale of any debt to coerce payment of the debt. Call repeatedly or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number. Falsely represent: (1) that the debt collector is vouched for, bonded by, or affiliated with the United States or any state, including the use of any badge, uniform, or facsimile thereof. (2) the character, amount, or legal status of any debt (ie pretending that there's a judgment on the account) (3) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt. (4) that the collector is an attorney or that any communication is from an attorney when it is not the case (5) that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action. (6) threaten to take any action that cannot legally be taken or that is not intended to be taken. (7) that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to -- (A) lose any claim or defense to payment of the debt; or (B) become subject to any practice prohibited by this title. (8) that the consumer committed any crime or other conduct in order to disgrace the consumer. (9) communicate or threaten to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. (9) use or distribute any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval. (10) Use any false or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer. (11) use a business, company, or organization name other than the true name of the debt collector's business, company, or organization. (12) imply that collector operates or is employed by a consumer reporting agency. (13) imply that any documents are legal process when they are not (14) likewise, imply that documents are not legal process and no action need be taken when in fact they are and the debtor may need to file an answer A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt, including but not limited to: (1) Collecting any additional amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. (2) Accept from any person a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit. (3) Solicit any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution. (4) Deposit or threaten to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument. (5) Cause charges (collect telephone calls, telegram fees, etc) to be made to any person for communications by concealment of the true propose of the communication. (6) Take or threaten to take any non-judicial action to effect dispossession or disablement of property when: (A) the property is not collateral, and even if it is: (1a) the collector has no intention of taking possession of the property or (1b) the property is exempt by law from such dispossession or disablement. (7) Use language or symbols, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram (except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business). File a lawsuit anywhere other than where the debtor resides or where the original transaction took place. What actions does the FDCPA require of debt collectors? -In the initial written communication with the consumer, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action. (If the initial communication was oral, the same information must be transmitted orally to the consumer.) -When seeking location, debt collector must identify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer; -Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall (unless the following information is contained in the initial communication or the consumer has paid the debt), send the consumer a written notice stating: (1) the amount of the debt; (2) the name of the creditor to whom the debt is owed; (3) that the consumer has the right to dispute the validity of the debt, or any portion thereof, within 30 DAYS OF RECEIPT (NOT THE DAY IT WAS SENT) of the communication, and if the consumer does not, the debt will be assumed to be valid by the collector the consumer (4) that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and (5) that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. In the event that the consumer does dispute the validity of the debt, the collector must cease all collection efforts until the debt validation or any copy of a judgment is mailed to the consumer. If a payment is made and the debtor owes multiple debts to the collector, the payment must be applied to any of the non-disputed debts, and if applicable, to the debt that the debtor specifically asks the payment to be applied to. What happens if I don't dispute the debt's validity? -The debt collector can continue to collect the debt as they normally would. If I don't dispute the debt's validity, does this mean I'm automatically liable if I am sued? -No, fortunately the FDCPA specifically prohibits this from being the case. Under the state debt collection guide, it says that original creditors are bound by the same law in my state, except for anything dealing with disclosures. What does this mean? -This means that the original creditor is not bound to accommodate debtors that dispute the validity of the debt. The original creditor also does not have to disclose to the debtor that "this is an attempt to collect a debt and any information will be used for that purpose" like collectors do. |
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