Debt collectors have a reputation of doing anything to collect on an outstanding loan. The federal Fair Debt Collection Practices Act (FDCPA) was enacted to make it illegal for debt collectors to use abusive, unfair, or deceptive practices when they collect debts. It’s important to know your rights when debt collectors call on an outstanding payday loan or other loan debt.
Debt collectors can NOT:
- Harass you.
- Lie to you.
- Engage in unfair practices.
- Come to your workplace.
- Call you repeatedly.
- Pretend to work for a government agency.
- Arrest you for debt.
- Publish your debt details.
- Call you before 8 a.m. or after 9 p.m.
- Pursue you for a debt you do not owe.
- Threaten you.
- Misrepresent the amount you owe.
- Attempt to collect interest or other charges on top of the amount you owe.
- Contact you by postcard.
- Discuss your loan amount details with anyone but you or your spouse.
What if a debt collector doesn’t follow the rules?
If a debt collector is contacting you, you should know that you have federal and state-protected rights. According to the FTC, you can report any problems you have with a debt collector to:
- Your state attorney general’s office
- The Federal Trade Commission
- The Consumer Financial Protection Bureau
Individual states have their own set of debt collection laws that may be different from the FDCPA. Your attorney general’s office can help you understand state laws and determine your rights under your state’s law.