Credit Cards Woes

Have you ever been contacted by a credit card company? Chances are you have or may be contacted in the near future, considering the reason downturn in the economy. At one of the fastest rates in recent memory, Americans are falling behind on their credit card payments, receiving delinquencies and defaults in double-digit percentages compared to last year and prompting warnings of worse to come.

If you find yourself in debt, the Fair Debt Collection Act (FDCA) provides protection. This is a federal law that shields consumers from abusive and harassing creditors. It applies to third party creditors who have purchased accounts or hired by the original creditor to collect a debt.
Once a creditor contacts you, they must advise that they are a collection agency. They must notify you who the original creditor is, and the amount owed. This permits you to determine if the bill is actually yours or if you dispute this bill. Always request a copy of the bill in writing and check if they advise you that you have 30 days to dispute the bill.

There are several rules that Debt Collectors must abide by. For example, a Debt Collector CANNOT:
1. Continue to contact you at your place of employment once you notify a collector that you do not want calls at work,;
2. Use abusive and intimidating language;
3. Call you several times a day;
4. Publish your name and nature of the debt;
5. Contact you before 8:00 a.m. and after 9 p.m.;
6. Communicate with any other person such as a spouse, family member, or even your attorney, without written permission from you;
7. Deposit a postdated check prior to the date written on the check;
8. Cannot collect any amount greater than the amount owed.

These are several more laws of conduct for creditors in the FDCA.

If you find that a third party creditor’s behavior violates the FDCA, you may send, via certified mail, a Cease and Desist Letter to the collection agency. They are then required to stop communicating with you. Once a third party debt collector receives a Cease and Desist letter, they can only contact you to notify you that their efforts will be terminated; they may utilize other alternatives they have used with similar debtors.