Good news about dealing with Collectors during the holidays
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Dealing with Collectors
Dealing with debt collectors rarely is a pleasant activity. They call you up at all hours of the night, send you nasty letters and can make your life a living nightmare.
Unless you’re “judgment-proof” (that is, broke) or plan to file for bankruptcy, most credit counselors believe that you shouldn’t ignore your debt or try to hide from a debt collector. Generally, the longer you put off resolving the issue, the worse the situation and consequences will become.
Good News
The Association of Credit and Collection Professionals (ACA International) recently released a statement to their members with regards to collection efforts during the holiday season.
The actions of third party collection agencies are restricted by the Fair Debt Collection Practices Act (FDCPA).
ACA International provided this legal opinion in their statement:
“Although the FDCPA does not specifically bar communication on any holiday, if a debt collector knows or should know contacting a consumer on any holiday would inconvenience the consumer, such action likely would be a violation of Section 805(a) of the FDCPA”
- Section 805(a) of the FDCPA prohibits a debt collector from communicating with
a consumer in connection with the collection of any debt at any unusual time or place or at a time or place known or which should be known to be inconvenient to the consumer. This means the consumer need only inform the debt collector that a call placed to him on his cell phone is inconvenient and the debt collector must cease any further communication with that consumer by way of his cell phone. See U.S.C. Section 1692c (a).
Penalty of up to $1000
Collection Agencies that violate the Fair Debt Collection Practices Act face a penalty of up to $1,000 in statutory damages in addition to the plantiff’s attorney’s fees.
Keeping in mind that this is simply a legal opinion provided by an industry association, you may notice a decline in collection calls throughout the month of December.
If you do find yourself being harassed by a collection agency, it is important that you understand your rights. Some debt collectors, with little regard for the law, will attempt to strong-arm you into making a payment. Although explicitly prohibited by the Fair Debt Collections Practices Act.
If you feel your rights have been violated or need clarification on something a collection agent said, you should contact an Attorney.
Marc Williams – FR Credit Repair
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- Good news about dealing with Collectors during the holidays