Frequently Asked Questions

Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

A debt collector is any person, other than the creditor, who regularly collects debts owed to others. Under a 1986 amendment to the Fair Debt Collection Practices Act, this includes attorneys who collect debts on a regular basis.

A collector may contact you in person, by mail, telephone, telegram, or FAX. However, a debt collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves.

You may stop a collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact. Please send the letter by certified, return receipt request and keep copies of everything. Free letters are available here.

If you have an attorney, the debt collector may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors usually are prohibited from contacting such permissible third parties more than once but if they already have your phone numbers or location, there is no need to contact others.. In most cases, the collector is not permitted to tell anyone other than you and your attorney that you owe money.

Within five days after you are first contacted, the collector must send you a written notice telling you the money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed. Make sure they follow the law.

Harassment. Debt collectors may not harass, oppress, or abuse any person. For example, debt collectors may not:

• falsely imply that they are attorneys or government representatives.
• falsely imply that you have committed a crime;
• falsely represent that they operate or work for a credit bureau;
• misrepresent the amount of your debt;
• misrepresent the involvement of an attorney in collecting a debt;
• indicate that papers being sent to you are legal forms when they are not;
• indicate that papers being sent to you are not legal forms when they are.

Debt collectors also may not state that:

• you will be arrested if you do not pay your debt;
• they will seize, garnish, attach, or sell your property or wages, unless the collection agency or credit intends to do so, and it is legal to do so (garnishment is currently prohibited in South Carolina for the collection of most debts);
• actions, such as a lawsuit, will be taken against you, which legally may not be taken, or which they do not intend to take.

Debt collectors may not:

• give false credit information about you to anyone;
• send you anything that looks like an official document from a court or government agency when it is not;
• use a false name.

Debt collectors may not engage in unfair practices in attempting to collect a debt. For example, collectors may not:

• collect any amount greater than your debt, unless allowed by law;
• deposit a post-dated check prematurely;
• make you accept collect calls or pay for telegrams;
• take or threaten to take your property unless this can be done legally;
• contact you by postcard.

If your state allows, you do not have to tell the debt collector you are recording them. In Michigan and Florida, where we represent most clients, you do have to provide notice that you are recording the call. Check the internet for a list of states allowing only one party permission. Even if you must tell them, don't worry, just say "I'm going to record this call." They can't help themselves and will continue with threats and abuse. BUT GET IT ON TAPE.

You have the right to sue a collector in a state or federal court within one year from the date you believe the law was violated. If your win, you may recover money for the damages you suffered. Court costs and attorney's fees also can be recovered. In a class action, a group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector's net worth, whichever is less.