Below, we’ll explain the laws surrounding debt collection and the harassment of debtors, and we’ll discuss how working with credit repair companies near San Diego, California can help you remove inaccuracies on your credit report and educate you on your options when it comes to maintaining a good credit score.
Federal Debt Collection Laws
While there are many laws regarding debt and its collection in the United States, the primary law that debt collectors and debtors need to be concerned with is the Fair Debt Collection Practices Act (FDCPA).
The FDCPA sets out guidelines for how debt collectors may interact with people who owe a debt, as well as provide harsh financial and civil penalties for those who violate its statutes. Recently, some states have updated laws to provide additional protections beyond the FDCPA, such as California’s medical debt collection laws.
Even if a debt collection company–such as Professional Credit Services–is legitimate and registered as a debt collector, they may engage in shady practices. Many times, these practices can easily cross the line into harassment.
FDCPA Harassment Policies You Should Know
There are several provisions inside the FDCPA that provide protection to consumers from debt collection harassment:
Collectors May Not Defame You
Collection agencies cannot send you letters that indicate on the envelope that you owe money. Similarly, they may not discuss your debts with anyone but you. One exception to this is they may speak with your spouse if you live in a community property law state like California.
Collection Agencies Cannot Harass You at Work
Debt collectors may only ask to verify your employment or ask to speak with you. If told to do so, they must stop contacting you at work, whether in a letter or over the phone. They can only contact your employer to garnish your wages if they have successfully won a lawsuit against you.
Collectors Must Not Use Profane Language, Threats, or Lies
A collector may not threaten you with physical harm or arrest. Furthermore, they cannot threaten to sue you unless they actually intend to file suit. They cannot scream, yell, or use obscene and profane language during the call. They may only discuss the debt that is owed and ask that you repay it.
You Cannot Be Contacted at an Unreasonable Hour
Collectors are prohibited from attempting to contact you outside the hours of 8:00 AM and 9:00 PM unless specifically authorized to do so by you.
Credit Repair and Debts That Aren’t Yours
Many of us have received a call from a debt collector regarding a debt we don’t remember. In such cases, it is entirely possible that the debt is not ours at all and there has been a mistake.
Sadly, these mistakes can haunt people’s credit reports for years without them knowing. Typically, the first time they find out is either when they get a call from a debt collector or when they apply for a line of credit and are denied due to a poor credit score.
In cases such as these, credit repair companies like The Phenix Group can assist by stepping in to handle these disputes. We’ve seen every possible scenario and understand how to deal with not only the debt collectors, but with the credit reporting bureaus and banks.
We’ll take credit repair out of your hands so you don’t have to spend hours on hold while sending certified letters back and forth for months just to erase an inaccurate debt. We can also provide you with education regarding how credit reports work and suggestions on ways to maintain a good credit score or make the one you have even better.
Being in debt is a challenge. Once you’ve confirmed the debt is real and yours, remember that you have rights and the law is on your side.