What is the Fair Debt Act? The fair debt act are the rules that must be followed by a creditor when trying to collect on a debt. A collection agency does not have full reign to call and harass you whenever they want.

There are consequences to being in debt

There is no debtors prison in this country but there are consequences to getting into debt and not paying it. For one it will ruin your credit score and your ability to get new credit. The second issue is that you will not get away from having to deal with your creditors in settling your debt. The fair debt collections practices act is what gives you protections from your creditor. For example, a creditor must treat you fairly and prohibits certain tactics when trying to recover a debt.

What types of debt are covered by the fair debt act?

The fair debt act covers personal, family and household debt. This would include credit cards, car loans, medical bill and other consumer debt. A bill collector is defined as a person that regularly collects debts that are owed to others. A third party bill collector, attorney and collection agency would fall into this category.

What rules do debt collectors have to follow?

A debt collector has many avenues when trying to collect from you. The may contact you by fax, telegram, telephone and mail. They may only contact you from 8am to 9pm unless you give them authorization to go outside of this time. A collection agency may not contact you at work if your employer does not allow calls during work hours. If the collector is calling you at work, you only need to tell them once to stop and they should not call you again. If they do call you again, they could be subject to a $1000 fine.

Collection agencies are not allowed to send and create fake documents that may threaten you

A creditor is not allowed to use a false name, engage in deceptive practice, threaten to seize property, deposit a post dated check or contact you with a post card.

If you feel your rights have been violated, you have one year to take a collector to court. You may want to contact your attorney general to see what your next step would be.

For a free no hassle debt review call toll free 1-888-368-6668 or go to DebtNegotiationZone.com

This information is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser or attorney.