The day of
strong armed debt collection practices should be over. Federal
legislation, a New York State law and New York City regulation prohibit
abusive, deceptive and unfair debt collection practices by debt
collectors. Unfortunately, there are still some companies that use
unfair and illegal tactics to try to collect debts, and consumers
should know their rights in such situations.
What Debts are Covered?
Personal, family, and household debts are covered, like money owed for
the purchase of a car, for medical care or for charge accounts.
What is a Debt Collector?
A debt collector is an individual who as part of his or her job,
regularly collects debts for others. Under federal law, this usually
does not include your creditor, but only applies to third party debt
collectors. In New York City, this definition is extended to include
anyone whose job is to collect debts for others. These individuals may
work for the creditors themselves, for example, in the collection
departments of stores, hospitals, doctors or lawyers offices.
How May a Debt Collector Make Contact?
A debt collector may contact you in person, by mail, telephone or
telegram. But, in connection with the collection of the debt, a debt
collector cannot contact you under the following circumstances without getting your approval first or getting approval from a court:
- Under New York State and New York City law, at any unusual or inconvenient time such as before 8:00 AM or after 9:00 PM;
- At any unusual or inconvenient place or at your job if your
employer prohibits or disapproves of your receiving such communication.
- With excessive frequency. More than twice during seven days is
excessively frequent. This does not include communications made in
response to communications from you.
- If the debt collector knows the consumer is represented by an attorney in respect to the debt.
Who May a Debt Collector Contact Concerning a Debt?
Generally, debt collectors cannot communicate with any person about
your debt other than you or your attorney without getting your written
consent or your attorney's consent
except to find out where you
live and work. In that the purpose is to try to contact you. A debt
collector may only identify themselves and state that they are seeking
location information.
In trying to locate you, a debt collector must not tell anybody that
you owe money, in most cases, talk to any person more than once, use a
post card, or put anything on an envelope or in a letter or telegram
that identifies the writer as a debt collector.
A debt collector may contact a consumer reporting agency, the
creditor, the creditor's attorney, an attorney representing you, or the
debt collector's employers or attorney about your debt without getting
your consent.
What is the Debt Collector Required to Tell You About the Debt?
Within five days after you are first contacted, the debt collector
must send you a written notice containing the following information
(unless all this information is included in the initial communication):
- The amount of money you owe,
- The name of the creditor to whom you owe the money,
- A statement that unless you, within 30 days after the receipt
of the notice, dispute the validity of the debt, the debt will be
assumed to be valid by the debt collector,
- A statement that if you notify the debt collector in writing
within the 30 day period at the address designated by the debt
collector in the notice that the debt is disputed, that the debt
collector will obtain verification of the debt and a copy of such
verification will be mailed to you.
- A statement that on your written request within the 30 day
period, the debt collector will provide you with the name and address
of the original creditor, if different from the current creditor,
- An address to which you should send any communication which
disputes the validity of the debt or any portion of it or any
communication requesting the name and address of the original
collector.
Can a Debt Collector Be Stopped From Making a Contact?
Yes, you may stop a debt collector from contacting you by saying so in
writing. Once you tell a debt collector not to contact you, the debt
collector can no longer do so, except to tell you in writing that there
will be no further contact or to tell you that some specific action may
be taken. Also, federal law states that a debt collector may not
contact you if you send the collection agency a letter stating you do
not owe money within 30 days after you are first contacted. However, a
debt collector can renew collection efforts if you are sent proof of
the debt.
What Types of Debt Collection Practices are Prohibited?
A debt collector may not harass, oppress or abuse you. For example, a debt collector cannot:
- Use violence or threats of violence to harm your property or reputation,
- Publish a list of consumers which says you refuse to pay your debts (except to a credit bureau),
- Use obscene or profane language,
- Repeatedly use the telephone to annoy you,
- Advertise your debt.
A debt collector may not use false statements when collecting a debt. For example, the debt collector cannot:
- Under New York State and New York City law, falsely imply that a debt collector represents the government or is an attorney,
- Falsely imply that you committed a crime,
- Falsely represent that the debt collector operates or works for a credit bureau,
- Misrepresent the amount of the debt,
- Represent that papers being sent are legal forms, such as a
summons, when they are not or that they are not legal forms when they
are.
- Disclose or threaten to disclose information about you that the debt collector knows is false.
Also, a debt collector may not say:
- That you will be arrested or imprisoned if you do not pay your debt,
- That he/she will seize, garnish, attach or sell you property
or wages, unless the debt collector or the creditor intends to do so
and it is legal,
- That any action will be taken against you which cannot be legally taken.
A debt collector may not:
- Give false credit information about you to anyone,
- Send anything that looks like an official document which might be sent by any court or government agency,
- Use any false name.
A debt collector must not be unfair in attempting to collect any debt. For example, the debt collector cannot:
- Collect any amount greater than the amount of your debt, unless allowed under New York State and New York City law,
- Make you accept collect calls or pay for telegrams,
- Put anything on an envelope other than the collector's address
and name. Even the name cannot be used if it shows that the
communication is about the collection of a debt.
What Control Do You Have Over Specific Debts?
If you owe several debts, any payment you make must be applied as you
choose. A debt collector cannot apply a payment to any debt you feel
you do not owe.
What Can You Do if the Debt Collector Breaks the Law?
You have the right to sue a debt collector in a State or Federal
court within one year from the date the law was violated. You may
recover money for the damage you suffered. Court costs and attorney's
fees can also be recovered. A group of persons may sue a debt collector
and recover money for damages up to $500,000.
Remember: While the law now protects you against strong-arm
debt collection practices, it does not relieve you of your
responsibility to pay your debts. Nor does violation of the law by the
debt collector relieve you of your obligation to pay. You may be able
to sue the debt collector for violation of the law, but you still have
to pay what you owe.
Also, realize that certain debt collection practices are legal. As
stated above, the debt collector may contact people you know and work
with in order to locate you. And, providing these provisions are in
your contract, the debt collector may be able to levy delinquency
charges against you, charge you collection costs; and under certain
circumstances accelerate your payment schedule.
