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The Fair Debt Collection Practice Act (FDCPA) applies to personal, family and household debts. This includes money owed for the purchase of a car, for medical care or for charge accounts. The FDCPA prohibits debt collectors from engaging in unfair, deceptive or abusive practices while collecting these debts. What debts are covered? Personal, family and household debts are covered, including auto loans, medical care and charge accounts. Who is a debt collector? A debt collector is any person who regularly collects debts owed to others, including some attorneys. How may a debt collector contact you? A collector may contact you in person, by mail, telephone, telegram or fax. However, a debt collector may not contact you at inconvenient 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 your employer disapproves. Can you stop a debt collector from contacting you? You can stop a debt collector from contacting you by writing a cease and desist letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. However, sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor. May a debt collector contact anyone else about your debt? If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money. What must the debt collector tell you about the debt? Within five days after you are first contacted, the collector must send you a written notice telling you the amount you owe; the name of the creditor; and what action to take if you believe you do not owe the money. May a debt collector continue to contact you if you believe you do not owe money? A collector may not contact you if, within 30 days after you receive the written notice, 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. What control do you have over payment of debts? If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe. What types of debt collection practices are prohibited? Harassment Debt collectors may not harass, oppress or abuse you or any third parties. For example, collectors may not: False Statements Debt collectors may not use any false or misleading statements. For example, debt collectors may not: Debt collectors also may not state that: Debt collectors may not: Unfair Practices Debt collectors may not engage in unfair practices in collecting a debt. For example, collectors may not: What can you do if you believe a debt collector violated the law? You have the right to sue a collector within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney's fees also can be recovered. 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. Where can you report a debt collector for an alleged violation? Report any problems with a debt collector to your state Attorney General's office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General's office can help.
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