The Federal Fair Debt Collection Practices Act gives you more protection from debt collectors. This law does not apply to “original creditors'' like banks or credit card companies.
The first time a debt collector reaches out to you, they must tell you:
- The amount of the debt, and
- Who you owe the money to (the “creditor”).
If they do not tell you this information, they must send you a letter with this information within 5 days of the call.
You have 30 days from when the debt collector first contacts you to:
- Disagree with the debt,
- Ask for proof of the debt, and
- Ask for the name and address of the original creditor.
You can send the debt collector a debt validation letter to get more information about the debt. If you send a debt validation letter, the collector must provide certain information to “validate” or prove that you owe the debt.
If you send a validation letter within 30 days after the debt collector first contacts you, they must stop all collection actions until they respond to your letter with proof of the debt.
Write a letter to the collector telling them to stop contacting you. Once the collection agency gets your letter, they may not contact you again to demand payment. They are allowed to write back to tell you that they will not contact you again. Also, they can contact you to tell you if they have to take a “secured” item or take you to court.
See a sample Cease and Desist letter you can use.
Debt collectors can only take assets that “secure” your debt. These are items that you agreed could be taken if you do not make payments.
For example, if you stop paying an auto loan, the debt collector may be able to take your car. Debt collectors do not have to go to court to repossess “secured” items.