Bill collectors must stick to federal rules

By PHIL MULKINS World Action Line Editor - 11/1/2009


Dear Action Line: What can I do if I'm being harassed day and night by a bill collector? They call me at work and at home at all hours of the day and night. — P.L., Tulsa.

The federal Fair Debt Collection Practices Act protects consumers from this type of activity and is enforced by the Federal Trade Commission — tulsaworld.com/FDCPA.

On July 2 the FTC announced it had settled charges against debt collection company operators using false threats and other unlawful tactics to collect consumers' debts — after the operators agreed to settle FTC charges they violated the federal law.

Enforcement actions: An FTC press release (tulsaworld.com/FTC070209) on these actions states: "The settlements bar future violations and require the defendants to pay $225,000. The FTC complaint states the defendants had three million consumer accounts and collected debts in every state, falsely threatening that nonpayment would bring garnishment of wages, arrest or legal action.

"The FTC alleged the defendants called consumers before 8 a.m. or after 9 p.m., called their workplaces when collectors knew or had reason to know that the calls were inconvenient; told employers, co-workers, relatives and neighbors about consumers' debts; continued calling after receiving consumers' written demands to stop and used harassing and abusive tactics such as calling many times a day, calling right back after consumers hung up and using profane or other abusive language."

Debts covered: The Act covers personal, family and household debts. Congress passed it to protect consumers from harassment by debt collectors, including money owed for the purchase of automobiles, medical care and charge accounts.

Collector limitations: Consumers should notify collectors in writing when they do not want further contacts from them. Once this notice has been received (sent by certified mail, "return receipt requested"), the collector must stop all communications, except notifying consumers specific actions are being taken (suits filed, cessation of contact, etc.). Debt collectors may not discuss consumers' debts with anyone other than their attorneys, credit bureaus, creditors and creditors' lawyers. They can, however, contact other people to find out where debtors live or work but not to reveal their debts.

Debt collectors may not harass, intimidate, threaten or embarrass debtors. They may not make false or misleading statements, such as falsely associating themselves with government offices or credit bureaus. They may not use misleading or false threats of imprisonment or criminal charges. See "Debt collection FAQs" at tulsaworld.com/DebtCollectFAQ.

When collectors cross line: Keep detailed records of communication from collectors: include time, date and contactors' names. Keep copies of written correspondence with them. Report the company in writing to: Federal Trade Commission, Correspondence Branch, 600 Pennsylvania NW, Washington D.C. 20580.



Submit Action Line questions by calling 699-8888 or by e-mailing phil.mulkins@TulsaWorld.com or by mailing it to Tulsa World Action Line, PO Box 1770, Tulsa OK 74102-1770.




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