Collection Procedures

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Legal Collection Procedures

If you owe money to creditors, you need to know and understand your rights under the Fair Debt Collection Practices Act (click here to view it), creditors must treat you fairly and are prohibited from using certain methods of debt collection.

General Debt Collection Practices

1. A debt collector may contact you in person, by mail, telephone, telegram or by fax.

2. You can't be contacted during any inconvenient times, between 9 p.m. and 8 a.m.,

unless you agree to it.

3. You can't be contacted at inconvenient places, such as your place of employment,

if your employer disapproves of it.

4. A debt collector may contact third parties. When contacting third parties, a creditor

is allowed to find out where you live, what your phone number is and where you

work.

5. A debt collector must, upon your request, send you a written notice telling you the

amount owed, name of creditor and what action to take if you believe you don't

owe the debt.

6. If you don't owe the debt and you have sent a written notice with proof, you may

not be contacted again.

7. If you do owe the debt, you can send a written notice stating that you do not want

to be contacted any more and by law, a debt collection agency can not contact you

any more.

Prohibited Practices

1. A debt collector(s) may not harass you, oppress or abuse you.

2. A debt collector(s) may not use any false information and/or make any misleading

statements to collect a debt.

3. A debt collector(s) may not use any unfair practices to collect a debt.

Violation of the Law
You can sue a debt collector individually or as a group, in a state or federal court within one year from the date the law was violated. You may be awarded damages plus an additional amount of up to, but not to exceed $1,000, plus court costs and all attorney fees.

Free Debt Management Counseling

To receive free confidential debt management counseling click here.

Additional Information

Click here for more in depth information, including sample letters, forms, tips and step-by-step detailed information (including how to stop a creditor or debt collector from contacting you...even if you owe them money).