Debt collectors can call your friends, neighbors, relatives - even the old lady who lives down the hall (with whom you’ve never spoken).
But there’s a limit to what they can say.

According to the Fair Debt Collection Practices Act (FDCPA), a debt collector may only contact a third party to obtain information about the your location, such as your home address or work address.  A debt collector may call neighbors or family if they are trying to locate you. They must identify themselves as a debt collector. They must state the name of their company if asked. They can’t ask any other questions about that person.

There are, however, a lot of things a debt collector cannot do when contacting a third party. For example:

• They can’t ask a neighbor to take a message or pass on any information.
• They can’t give any information, other than a name and location, about the person they are trying to find.
• They can’t give an account number or any details about your debt.
• They certainly can’t say that your debt is delinquent.

A debt collector can’t make false statements to your neighbors.

They can’t insinuate that you have committed a crime or that they are with law enforcement.  If they are asked to stop calling, they are required to do so.

Debt collectors can’t contact a person at times or places they know are inconvenient. They can’t contact a person before 8:00 a.m. or after 9:00 p.m.

Debt collectors may communicate by telephone, in person or by sending a telegram. They may also communicate by mail, though there are restrictions to that as well.

Unscrupulous debt collectors will sometimes call friends and neighbors because they want to embarrass and harass you into paying your debt.

If you believe that a debt collector has violated your rights under the Fair Debt Collection Practices Act, contact me immediately to discuss your legal options.

The Fair Debt Collection Practices Act (FDCPA) is a set of rules governing debt collection and how collectors should behave. This Act sets requirements and prohibits any unfair or disrespectful act against you by debt collectors, such as phone harassment or debt collection letters laced with threats of lawsuits.

As it turns out, however, the FDCPA does not treat all debts equally. The distinction arises from its own definition of “debt”. As stated under the Definitions section of the FDCPA:

(5) The term “debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes…

In other words, the FDCPA covers only consumer debt. If you used your credit card for private purposes, such as paying for medical expenses or to purchase a new car, your debt is covered by FDCPA benefits. On the other hand, if you use your credit card to finance a business, that expense is considered business debt and falls outside of the FDCPA. If you do incur such debts and are unable to pay them, you may be vulnerable to unsavory collection tactics. It is not uncommon to be woken up by a late night phone call to be told by a collector that you are facing immediate arrest for late payments on your credit card debt.

Plan out your strategy carefully before using your credit card to fund your business. Be also aware of your state laws governing debt collection. If you’re already being harassed by debt collectors, contact me to discuss what they can’t do to you and what you can do about them.

If you have an attorney, the debt collector must contact the attorney unless the attorney cannot be contacted readily. If you do not have an attorney, a collector may contact other people but only to find out where you live, what your phone number is and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money. That’s why your family members may get a message that tells them to ask you to call Mr. X regarding an “important personal matter.”

Under the Fair Debt Collection Practices Act a collector may contact you in person, by mail, telephone, telegram or fax. A debt collector may not contact you at inconvenient times or places (usually before 8 a.m. or after 9 p.m.) unless you agree. A debt collector also may not contact you at work if the collector knows that you are not allowed to receive such calls at work.

The Fair Debt Collection Practices Act (or FDCPA) is a federal statute that seeks to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with a way to dispute and obtain validation of debt information in order to ensure the information’s accuracy. The FDCPA creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act.