Although most states provide consumers with limited protection from unscrupulous practices by debt collectors, the Federal Fair Debt Collection Practices Act provides wide-ranging protection. This federal statute prohibits unfair or abusive collection practices.

It is unlawful for a debt collector to harass, abuse and deceive a debtor. A consumer debt is one which arises out of a transaction in which money, property, insurance or services are primarily exchanged for personal, family or household purposes. These types of debts include residential landlord-tenant debts, condominium fees and home utility bills.

The act does not cover the collection of commercial or business debts; tort debts for personal injury; property damage, tax or child support debts. Collection Agencies and Attorneys who do debt collection, litigation must comply with the Act but creditors who are attempting to collection their own debts are not subject to the provisions of the Act.

A DEBT COLLECTOR MUST FOLLOW CERTAIN RULES AND MAY NOT DO ANY OF THE FOLLOWING:

1. Communicate with a consumer at an unusual time. Calls are permitted between 8:00 a.m. and 9:00 p.m. unless the collector has reason to believe that the consumer works at night and sleeps during the day.

2. Communicate with the consumer if an Attorney represents the collector.

3. Communicate with the consumer at his or her place of employment if told that their employer prohibits such communication.

4. Use or threaten the use of violence or the filing of criminal charges.

5. Use obscene or profane language.

6. Publish a list of consumers who allegedly refuse to pay debts (unless to a credit reporting agency).

7. Place telephone calls without disclosure of the caller’s identify.

8. Cause a telephone to ring repeatedly or engage a person in repeated conversations with the intent to annoy, abuse or harass.

9. Falsely represent or imply that non-payment of a debt will result in arrest or imprisonment, garnishment, sale or attachment of any property or wages, unless such action is lawful and the creditor intends to take such action.

10. Falsely represent or imply that the consumer committed any crime or other conduct in order to disgrace the consumer.

11. Fail to disclose in its initial written or oral communication to the consumer that the collector is attempting to collect a debt and any information obtained will be used for that purpose.

12. Accept a post-dated check or other payment instrument which is post-dated by more than 5 days.

13. Communicate by postcard.

14. Use a business name on an envelope that reveals that it is a debt collector.

Once contacted, a consumer may dispute a debt. This dispute must be in writing. A collector must provide in writing a validation of the debt within 5 days of your request. The validation must include the following:

• the amount of the debt;

• name of the creditor;

• a statement that if the consumer notifies the collector in writing within the 30 day period that the debt or any portion is disputed the collector will obtain verification of the debt;

• the original creditor’s name and address if it is different from the current creditor.