Creditor Harassment: You Should Know Your Rights Regarding Debt Collection

November 28, 2012 (Press-News.org) If you face severe debt, you may have had a few conversations with persistent debt collectors. If you are over your head and anticipate collection efforts from creditors, you should ensure that you know and understand your rights and protections.

Debt collectors are hired on a commission basis by credit card issuers (creditors) and banks to collect outstanding accounts. If a collector seeks you out, you should ensure that his or her practices are in accordance with the law.

Upon initial contact, debt collectors must inform you of your rights to dispute the debt. Furthermore, you must be informed of the following:
- The amount of debt
- The name of the creditor
- Time limits on disputing the debt (30 days)
- The right to ask for verification of the debt

Federal law requires that this information be given over the phone or be sent to the consumer in writing within five days of the first telephone contact.

The Fair Debt Collection Practices Act

The federal Fair Debt Collection Practices Act, which was enacted in 1977 to curb abuse by debt collection agencies, carries consumer protections against creditor harassment, threats, unwanted calls to the workplace and disclosing your financial status to others.

Provisions of the Fair Debt Collection Practices Act prohibit the following:
- Harassment -- including excessive phone calls, abusive language and threats of harm or arrest
- Disclosure of the existence of debts to others who are not authorized to know about the debts
- Contact with consumers at inconvenient times (before 8 a.m. and after 9 p.m.)

These are just some of the bars against collectors. Although it is illegal, this harassment happens all of the time. If collectors are calling incessantly, you may need to send a "cease communication letter." This tool notifies debt collectors that they shall communicate with you only in writing or stop communication altogether.

Anonymous phone calls or any other telephone behavior intended harass you is also prohibited. If the abuse is severe, you may use a cease communication letter to inform collectors that they are in violation of federal law.

Furthermore, if an attorney represents you in the debt collection case, the law states collectors must communicate directly with the lawyer and not you.

Article provided by The Law Offices of James C. Shields
Visit us at www.shieldslaw.net