LEGAL MATTERS: What To Do When Creditors Call
Wednesday, June 27, 2012
The economic downturn has left many Rhode Islanders unable to meet their monthly bills. While juggling money every month can be stressful enough, that stress increases when debt collectors come calling. Knowing your rights can help you tackle the problem head on.
Generally speaking, after about three to six months of non-payment, creditors will turn an unpaid bill over to a debt collector -- a third party that attempts to collect the unpaid bill. These third parties are subject to the Fair Debt Collection Practices Act (FDCPA) a federal law that protects consumers from deceptive, unfair and abusive collection practices by debt collectors.
When they cannot call
Under the FDCPA, a debt collector cannot call you before 8 a.m. or after 9 p.m.; call you anytime it is inconvenient for you; call you repeatedly; allow your telephone to ring continually; or fail to identify the fact that they are a debt collector. A debt collector also cannot call you at work if you tell them not to or if they believe your employer would not allow you to receive such calls.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTOnce you tell the collector you are represented by an attorney and identify the attorney, the collector may only contact that attorney. However, if the attorney does not respond or allows the collector to speak with you, the collector is allowed to again contact you.
If you put it in writing
If you tell the debt collector in writing to stop communicating with you, the collector must stop. The collector may only then contact you to let you know that they may seek or are seeking specific remedies.
Generally, a debt collector may contact you, your spouse and your attorney. If the collector cannot reach you, he or she is allowed to call other people but only to track down your address, phone number and where you work. The debt collector cannot say or suggest to those other people that you owe money.
What they must provide you with
A debt collector must provide you with the amount of the debt; the name of the original creditor to whom the debt was owed; notice that you have 30 days to dispute the debt in writing or it will be assumed valid; notice that upon the written dispute the collector will send verification of the debt or a copy of any judgment; and notice that if within the 30 days you request in writing the name and address of the original creditor if different form the current creditor they will give you that information.
It should be noted that while the rules apply generally as outlined, a court can and sometimes does grant permission to debt collectors to go outside the FDCPA. It is also important to understand that this act does NOT apply to creditors who are collecting for themselves. If your credit card company calls because you are overdue on your credit card, the FDCPA does not apply, although you may have other rights and remedies.
Next week, we will discuss additional prohibited practices under the FDCPA and the civil damages consumers may seek against debt collectors who violate the FDCPA.
The foregoing is offered for informational purposes only and is not legal advice nor does it create an attorney-client relationship.
Susan G. Pegden is a litigation associate with the Law Firm of Hamel, Waxler, Allen & Collins in Providence. She is admitted to practice in Rhode Island and Massachusetts and is a member of the Board of Governors of the Rhode Island Association of Justice (RIAJ) and a member of the Rhode Island Women’s Bar Association.
Sean P. Feeney is a partner with the Law Firm of Hamel, Waxler, Allen & Collins. He is admitted to practice in Rhode Island, Illinois and Wisconsin. Mr. Feeney is a former special counsel to the City of Providence, military prosecutor with the United States Marine Corps and Special Assistant United States Attorney for the Central District of California.
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