The Fair Debt Collections Practices Act (FDCPA) sets the rules by which a bill collector or collections agency may contact and interact with debtors. The law only applies to third party collections agents, not in-house collectors. For example, if a collection agent is an employee of the company to which you owe money, he or she is not required to abide by the laws set forth in the FDCPA. Despite this, many in-house collections units still follow the FDCPA laws because they make good sense and provide for appropriate customer treatment. Here are some of the highlights off the FDCPA:

1. A collection agent may not call you during unusual hours or at a time that is known by them to be inconvenient to you. Typically, 8:00AM – 9:00PM are considered acceptable times to call.
   
2. If you inform the collection agent that you are working with an attorney to resolve your debts, the agent is no longer allowed to contact you directly with regard to the debt. You will be asked to give the agent the contact information for your attorney. 
3. If you file bankruptcy, the agent is no longer allowed to contact you directly with regard to the debt. The agent may contact your attorney, so make sure to give him or her the appropriate contact information.
4. An agent may not call you at work if you are not allowed to receive calls at work. You have to tell the agent that you are not allowed to receive calls at work in order for him or her to know that.
5. An agent may not call repeatedly in order to annoy or harass you. 
6. An agent may not use harassing or obscene language during a call.
   
7. If you tell a collection agent not to call you, they must stop and may only communicate in writing from that point on.
   
8. A collection agent may not misrepresent himself or herself as someone else. This includes law enforcement or a government agent.
   
9. A collection agent may not speak with any third party, who is not liable for the repayment or the debt, about the debt without your permission.
   

In addition to the FDCPA, your state may have other laws, which collection agents must follow. For more details, contact your state attorney general’s office. If you feel that a collection agent has violated the FDCPA, you should contact the company to which you owed the original debt, your state’s attorney general and the Fair Trade Commission (ftc.gov).

Labels: Collections, Credit Card