Debt Law
Bad Debt Consolidation by splinder
Filed under Debt Management
If you are unable to pay your dues and creditors or debt collection agencies are harassing you could use some awareness of debt law. The agencies collecting debt are required to follow not just the Federal debt collection laws but also the debt laws of the respective states they operate in.[br]
Types of Debt Law
Fair Debt Collection Practices Act (FDCPA) and the Fair Debt Reporting Act (FCRA) are the two debt laws that the collection agencies are supposed to follow.
- Fair Debt Collection Practices Act: This is the primary debt collection law meant to protect the interest of debtors from collection agencies. Types of debts that are covered under this law include household, personal and family debts. It also covers loans taken for medical treatments, for buying a car or personal charge accounts. If you are unable to pay back your debt then the law protects you from the deceptive or abusive action by debt collection agencies. The law also prohibits debt collectors from making phone calls at odd times or damaging your property.
- Fair Credit Reporting Act: The main tenet of this law puts restrictions on the collection agencies on showing the credit information debtor to others.
Federal trade commission and FDCPA together specifically puts the following restrictions on the debt collectors:[br]
- Calling at the work place against the wishes of the debtors.
- Calling before 8 am or after 9 pm.
- Prohibition on abusive languages or use of oppression.
- Lying to the debtors about legal implications.
Collectors are also required to abide by your request if you ask them to stop contacting you in writing. Further, the law requires the debt collectors to have proper documentation on the amount of debt owed by the debtor.
When you are already stressed due to your financial worries the collection agencies further complicate the situations by their unruly behavior. By knowing your rights through the debt collection law along with the outstanding debt you can deal with the collection agencies properly in case they contact you.