Archive for the ‘Fair Debt Collection Practices Act’ Category
How can a debt collector communicate under the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act has some very specific ways that are expressly not permitted and a very few that are permitted.
As we have mentioned before, a debt collector is not permitted to, in the process of collecting a debt use language that is abusive or harassing, false or misleading, or unfair or unconscionable.
But there are other things that a debt collector can do that are illegal.
Debt collectors are not permitted to contact a person at a time that they know is inconvenient. It is presumed that 8:00 am to 9:00 pm are acceptable hours, but if you work the night shift, that is bad for you. If you work the night shift, tell the debt collector that it is inconvenient to take calls from 8:00 am to 5:00 PM, since that is the time that you sleep. They should call from 5:00 pm to 10:00 pm, since that is when you are awake.
Debt collectors are not permitted to contact a person they know has a lawyer. There are a few exceptions, like if the lawyer says its OK, or if a judge authorizes it, or the lawyer is non-responsive. But they have to know that you are represented by a lawyer, and how to contact that lawyer. We always recommend that you “lawyer up” in writing. Give them your lawyer’s name and address. If your lawyer is willing to talk on the phone, give them the phone number. But do it in writing. But remember- we always suggest Certified Mail, Return Receipt Requested. That way you can prove that you sent it, and they received it. A sample letter “lawyering up” can be found here.
Debt collectors are not permitted to contact a person at work, if they know that the person cannot take that type of call (collection calls, or more generally personal calls) at work. The key here is that they have to know, or have a reason to know (know or should know). How do you tell them that you can’t talk at work? You just tell them. Tell them on the phone, when they call. Tell them in writing. Follow up your telephone conversation with a letter. Send it Certified Mail, Return Receipt Requested.
Then, track the phone calls with our call log. If you can prove that they received your letter, and called anyway, we can help you.
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
Jury Awards $1.5 Million in Damages Due to Debt Collector Abuse
Last week a Jury in Dallas, Texas made one of the biggest sanctions ever in a case involving abusive debt collections. The jury awarded Allen Jones’ $50,000 in mental anguish damages and $1.5 Million in punitive damages due to the conduct of debt collectors employed by Advanced Call Center Technologies. This story was first reported by WFAA-TV in Forth Worth. The trial was prosecuted by Dean Malone and Mark Frenkel.
Debt Collectors employed by ACCT admitted to making the calls which included the use of racial slurs, swearing, and mental harassment. All of this was over “Zombie Debt” of $200.00 that Mr. Jones had previously paid but his creditors refused to give him credit.
Even if you may or may not owe a company money they are not entitled to berate your in their attempts to collect a debt. By law debt collectors must treat you with:
- Truth
- Dignity
- Honesty
- Respect.
If you are receiving calls from a debt collector and he or she is saying things that
you could not “Repeat to your Grandmother” then your rights under state and federal law are being violated. It is time to act!
Debt Collector harassment is illegal and can be stopped Click Here for Help.
NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers to enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
How can you make a debt collector stop?
How can you make a debt collector cease communications under the Fair Debt Collection Practices Act?
As usual, we start with the text of the statute.
15 USC §1692c(c) Ceasing communication
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, except—
(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.
If such notice from the consumer is made by mail, notification shall be complete upon receipt.
This means that, under the Fair Debt Collection Practices Act, if you inform a debt collector that you wish for them to stop collecting from you, they are required to do so. They are then prohibited, by the Fair Debt Collection Practices Act, from MOST other contact. They can let you know that they are complying with your requests. They can let you know that they may do certain things that are legal, that are collection efforts- repossession, foreclosure, lawsuit. And they can take those actions.
For most collectors, there is very little that they can do in response that complies with the Fair Debt Collection Practices Act, but one must be wary of collections agencies that are lawyers. Once should be particularly aware of those firms that regularly sue in the local courts where you are located. Those collectors, one should think carefully before deciding that you wish to tell them to cease collections efforts, as they may decide that they wish to sue to collect.
Because of this distinction, it is very important to contact a consumer protection lawyer, who is familiar with the Fair Debt Collection Practices Act, in your community before taking this kind of action. If you are in Virginia, we are glad to assist you. If you are not in Virginia, please visit the National Association of Consumer Advocates Find An Attorney webpage.
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
Who is a Debt Collector Allowed to Contact about your debt?
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
How can a debt collector communicate with a third party under the Fair Debt Collection Practices Act?
As usual, we start with the text of the statute.
15 USC §1692c(b) Communication with third parties
Except as provided in section 1692b of this title, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than the 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.
How is this important to you?
This one is actually very simple. A Debt Collector may not communicate with any third party about your debt, except for the purposes of location information.
A Debt Collector is not permitted to contact your family or friends or neighbors to discuss your debts. That would violate at least two provisions of the Fair Debt Collection Practices Act.
A Debt Collector is not permitted to contact your family, friends or neighbors, once they know where you are. Contacts like that violate the Fair Debt Collection Practices Act.
A Debt Collector is not permitted to “verify employment” with your employer. This also may violate more than one provision of the Fair Debt Collection Practices Act.
As you can see, this is a remarkably simple provision that provides a fair amount of protections.
In times past, contact like this might have been the tort of invasion of privacy, but Virginia has done away with this tort for most purposes. At least in Virginia, you have no right to privacy, only a right not to have your likeness used for commercial purposes without your consent.
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
How is a Debt Collector allowed to locate you?
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
How can a debt collector collect contact information under the Fair Debt Collection Practices Act?
The law on how a collector may collect information about your location is found in 15 U.S.C. §1692b
A debt collector may only contact a third party if s/he follows the rules.
They have to 1- Identify him/her self, state only that they are verifying location information, and only identify their employer if asked; 2- NOT state that the consumer owes a debt; 3-not call more than once unless there are specific exceptions; 4- not communicate by postcard; 5- not use any information on the outside of the envelope that indicates that they are debt collectors; 6- communicate with anyone after they know the consumer is represented by an attorney.
So what does this mean for you?
There are 2 things that collectors like to do that are violations of this (and other provisions) of the Fair Debt Collection Practices Act.
Block parties and cube-farm parties (also known as office parties).
A block party is where a debt collector calls the neighbors all around a consumer and asks for them to carry some information to you, asking you to call. They call the neighbor on the left, the right, across the street and both diagonals.
An office party or cube-farm party is where they call your co-workers, and ask for them to pass you a message. It is the same thing as a block party, only at work.
Why do they do this? Because it is VERY embarrassing to have your neighbors know that you have a debt collector calling. They are going to ask you why this person is calling. Clearly, this is intrusive, and you don’t have to answer, but the collectors know that you will do almost anything to stop the calls- like pay. So the question becomes- why are they calling? It’s not to locate you. They know where you live or work. They can write to you, or call your home or cell phone, or work phone. It is for the sheer embarrassment factor of all those calls. The embarrassment, and hurt. Not only does this violate the section of the Fair Debt Collection Practices Act on communication, it may also be harassment or abuse and an unfair and deceptive act under the Fair Debt Collection Practices Act.
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
Text Messaging and the Fair Debt Collection Practices Act
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
The Fair Debt Collection Practices Act is designed to protect consumers from abusive or harassing conduct, false or misleading statements or unfair act by Debt Collectors.
What is “unfair or unconscionable” under the Fair Debt Collection Practices Act?
As usual, we start with the statutory definition. Thanks to LII.
15 USC §1692c prohibits a collector from communicating with third parties that you owe a debt.
15 USC §1692d prohibits collectors from using abusive means to collect a debt, including
(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
(6) Except as provided in section 1692b of this title, the placement of telephone calls without meaningful disclosure of the caller’s identity.
15 U.S.C. §1692e says a debt collector may not use any false, deceptive, or misleading . . . means to collect a debt, including
(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, 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.
(14) The use of any business, company, or organization name other than the true name of the debt collector’s business, company, or organization.
15 U.S.C. §1692f says a debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Including–
(5) Causing charges to be made to any person for communications by concealment of the true purpose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.
What does this mean for you?
It means that a debt collector CAN collect by text message IF they comply with all of the rules of the Fair Debt Collection Practices Act. But they are very limited, when they have a limit of 140 characters.
If they only have 140 characters to communicate, and they must 1-disclose their identity, 2-that they are debt collectors, and 3-that they are collecting a debt, all 4-without causing you to be charged a fee, and 5-without disclosing to a 3rd party that you owe a debt, that’s pretty hard. The Fair Debt Collection Practices Act is strict liability, which means that if they violate ANY provision, that they can be sued. It is similar in this fashion to the speed limits in the United States. Neither the police officer or the judge cares WHY you were going 40 when the speed limit was 35, they only care THAT you were going 40. You have to pay the fine. Similarly, the Fair Debt Collection Practices Act says that they are not permitted to violate one provision in order to avoid violating another section. (See: Edwards v. Niagra Credit, (11th Cir)). If the violate any provision, they must pay the fine.
Read next time about damages- both actual and statutory.
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
What is unfair or unconscionable under the Fair Debt Collection Practices Act
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
The Fair Debt Collection Practices Act is designed to protect consumers from abusive or harassing conduct, false or misleading statements or unfair act by Debt Collectors.
What is “unfair or unconscionable” under the Fair Debt Collection Practices Act?
As usual, we start with the statutory definition. Thanks to LII.
15 U.S.C. §1692f says
A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The collection of any 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) The acceptance by a debt collector from any person of 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) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.
(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.
(5) Causing charges to be made to any person for communications by concealment of the true purpose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.
(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if—
(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest;
(B) there is no present intention to take possession of the property; or
(C) the property is exempt by law from such dispossession or disablement.
(7) Communicating with a consumer regarding a debt by post card.
(8) Using any language or symbol, 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.
So, a collector is not permitted to ask for any money unless it is an amount allowed for by law or by agreement. Examples of this are collection fees, or more commonly, fees for how you pay. For example, if you pay by phone, some collectors charge a fee for pay by phone. This is an illegal charge under the Fair Debt Collection Practices Act.
Post dated checks are another problem under the Fair Debt Collection Practices Act. If the collector accepts a post-dated check, they must not deposit the check until the date you specify. If that date is more than 5 days away, they must notify you in writing that they are going to deposit the money before they do so.
They also are not permitted to solicit a post-dated check, if the purpose of this is to charge you with a crime if the money is not there.
They cannot hide the charges, for example, by doing a collect phone call. This is prohibited under the Fair Debt Collection Practices Act. Other examples are calls to cell phones where you have a per-minute charge (I know this is relatively rare in these days of unlimited minutes, but it was more common), or if they communicate by text message, and you are charged a fee for receiving text messages. Text messages are a whole problem unto themselves, and we will dedicate a blog to that another time.
Postcards an markings on envelopes that identify the business are improper, also, under the Fair Debt Collection Practices Act.
The only provision of the Fair Debt Collection Practices Act that applies to repossession agents is the section on repossessing or foreclosing on something that they do not have the right to do so. 15 USC 1692f[6]. A repossession agent is not permitted to repossess a car if there is no present right to repossess the car. They cannot foreclose if they are not permitted to do so. When are they not permitted to do so? If there is no loan on your car or house. If you are current on your car or house payments, this would also potentially violation the Fair Debt Collection Practices Act. There will be a longer post on that another time.
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
What is a consumer debt
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
The Fair Debt Collection Practices Act is designed to protect consumers from abusive or harassing conduct, false or misleading statements or unfair act by Debt Collectors.
The second question that is key to ask, is What is a debt that is covered by the act?
Not all debts are “debt” for purposes of the Fair Debt Collection Practices Act.
We always start with the statutory definition.
16 USC 1692a[5] says “debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment.
What this means is that if the debt was incurred to pay for something for you, or your houshold, it is a consumer debt. Examples include credit cards used to pay for family vacations, groceries or gas. It includes your store brand credit cards, if you use them for your self. Your car, if its for your personal use.
It does NOT include debts that are for business, or debts that are not from a transaction.
Lets go over some examples of not-transactions
Taxes, fines, levies, and other tort damages, like car wrecks or assault or shoplifting debts. These are debts that you owe, but there was no bargained for transaction. You did not do something, like negotiate for how much you would pay in taxes, and get something in return (well, maybe you did get something, but police protection, fire departments and roads are not something you negotiate for, you get them because you live there).
A car wreck is another perfect example. You did not agree to get into a car wreck and cause $5,000.00 in damages. You had an accident. This is a tort, called negligence.
So what IS covered?
Basically, anything that is a contract.
Your car loan, for the car that you use to take the kids to soccer, go to the grocery store, and drive to your place of employment, is a contract, for a purchase that you made for your personal use, and for the good of your household. But if you use that car for work- for example, a delivery driver, that car may not be a “personal” use car. It may be a business use.
How about store cards? Lets use a home improvement/hardware store card, as our example, because we can have that for many different purposes.
Lets says you have a credit card with the store, and you want to build a deck on your home. So, you charge the materials, and the brand new circular saw, and the saw horses, and the hammers, and all the other stuff. You are building a deck on your home. This is a debt for personal, family or household purposes.
Lets say you are a contractor, building a deck on a customer’s house. So, you charge the materials, and the brand new circular saw, and the saw horses, and the hammers, and all the other stuff. You are building a deck on your customer’s house. You make a living (we assume) doing construction, so the debt to the store is for a business debt, not a consumer debt. This debt would NOT be covered by the Fair Debt Collection Practices Act.
How about a check to the local grocery store?
The same analysis applies.
Did you buy groceries for you and your family? That is a consumer debt, and is covered by the Fair Debt Collection Practices Act.
Did you buy groceries because you are a caterer, and need supplies for your next job? That is NOT a consumer debt, that is a business debt, and not covered by the Fair Debt Collection Practices Act.
Why is this important?
Because when a debt collector does something that is abusive, false or misleading or unfair, to collect on a CONSUMER debt, they violate the Fair Debt Collection Practices Act. A violation of the Fair Debt Collection Practices Act allows you to sue a debt collector for actual damages, an additional $1,000.00, plus attorneys fees and costs. Please note that the $1,000.00 is NOT per violation, but for all violations that occur.
Read more about what we can do to assist you in protecting yourself from collection harassment or abuse, false or misleading statements or unfair and deceptive acts in the main section of our website.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
What is the difference between a creditor and a debt collector?
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
The Fair Debt Collection Practices Act is designed to protect consumers from abusive or harassing conduct, false or misleading statements or unfair act by Debt Collectors.
What is a DEBT COLLECTOR and how is a DEBT COLLECTOR different from a CREDITOR?
A “Creditor” is defined at 15 U.S.C. §1692a[3]- “The term “creditor” means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.”:
A “Debt Collector is defined at 15 U.S.C. §1692a[6]- The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. “ There are some exclusions, that we will talk about (briefly) later.
Why is this important?
In Virginia, this is particularly important, because a debt collector is covered by the Fair Debt Collection Practices Act (FDCPA), and a creditor is not covered by the FDCPA. A debt collector is subject to regulation (and more importantly, to being sued) for acts that are abusive or harassing, false or misleading, or unfair and deceptive.
A creditor is NOT subject to anything. A creditor, and their employees may not violate criminal law in the collection of a debt. Generally, this means that they can’t send someone to your house to beat you up. That’s about it. The Fair Debt Collection Practices Act (FDCPA) does not apply.
So, what is a “Debt Collector?” A debt collector is anyone who uses the phone, mail, telephone, telegraph, or any other thing that crosses state lines, to collect debts that are or were owed to someone else.
The easiest way to explain this is examples.
- You owe First National Bank of Nonesuch (FNBN) for a credit card. FNBN’s employees call and violate the law (never mind how, that’s another blog entry, lets just assume that they did something that would violate the law). FNBN is a creditor. They did not violate the Fair Debt Collection Practices Act (FDCPA), because the act does not apply to them.
- You owe FNBN for a credit card, and the account goes into default. Mean Debt Collector (MDC) has an employee who calls and violates the law (once again, never mind how, that’s another blog entry). MDC (and their employees) are debt collectors as defined by the Fair Debt Collection Practices Act (FDCPA), so they have violated the law.
- You owe FNBN for a credit card, and the account does NOT go into default. Mean Debt Collector (MDC) has an employee who calls and violates the law (once again, never mind how, that’s another blog entry). MDC is not collecting an account that is in default, so they did not violate the Fair Debt Collection Practices Act (FDCPA), because the act does not apply to them- they are not collecting an account that went into default.
- You owe FNBN for a credit card, and the account goes into default. Junk Debt Buyer (JDB) lets you know that they have bought your account, and you should now direct all your payments to them. Then they call and violate the law (once again, never mind how, that’s another blog entry.). JDB has violated the Fair Debt Collection Practices Act (FDCPA) because they are debt collectors as defined by the act.
In other states, like North Carolina, California, Florida, and Maryland, creditors are covered by the state laws. VIRGINIA DOES NOT HAVE A STATE COLLECTION ACT. The Virginia Consumer Protection Act DOES NOT APPLY to debt collectors.
Read more about what we can do to assist you in protecting yourself from collection harassment or abuse, false or misleading statements or unfair and deceptive acts in the main section of our website.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
Who is protected under the Fair Debt Collection Practices Act
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
The Fair Debt Collection Practices Act is designed to protect consumers from abusive or harassing conduct, false or misleading statements or unfair act by Debt Collectors.
The first questions to ask in an inquiry is “Am I a consumer who is entitled to protection?”
Lets start with the definition from the statute.
15 U.S.C. §1692a[3] says a “consumer” means any natural person obligated or allegedly obligated to pay any debt.
So, you must be a natural person. This means that for MOST purposes if you are a business, you are not protected. There is a key exception. Harassment or abuse is something that is prohibited in the collection of consumer debts as to ANY person, and for this section (15 U.S.C. §1692d), any person INCLUDES non-consumers– businesses, and other entitles.
But the discussion of consumer does not end there. A consumer also owes or is alleged to owe a consumer debt.
So, just because you are a real person does not mean that you are entitled to protection. They must owe a consumer debt. Consumer debts are generally debts incurred for personal, family or household use. Commercial debts, tort debts, and taxes and fines are specifically excluded.
This means that most people are protected, generally for most usual kinds of debts, but not all.
Read up on What is a “Debt”? next week.
Read more about what we can do to assist you in protecting yourself from collection harassment or abuse, false or misleading statements or unfair and deceptive acts in the main section of our website.
If you have been impacted by any of the things that we have mentioned in this or any other blog post, please contact us.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230