You may have just received an intimidating call from a debt collector, or you’re worried you’re about to default on a loan and aren’t sure what will come next. Luckily, it’s possible to work with credit repair services in Philadelphia, Pennsylvania.
Reputable credit repair agencies, like The Phenix Group, can connect you with legal and financial specialists to answer all of your credit-related concerns. Wondering if leasing a car builds credit or need help writing a letter to dispute inaccurate information on a credit report? We’ve got your back.
When it comes to debt collections, there are state and federal laws in place to protect you. The Fair Credit Extension Uniformity Act (FCEUA) regulates the debt collection practices of debt collectors and creditors in Pennsylvania and is supplemented by the federal Fair Debt Collection Practices Act (FDCA).
These laws are put in place to protect debtors, such as yourself, and place restrictions on the conduct of collectors. Specifically, these laws prohibit debt collectors and creditors from engaging in unfair or deceptive practices to collect debts.
What Are Debt Collectors Allowed to Do?
The job of a debt collector is to contact you and request you to pay back the debt you owe. They are completely allowed to show up in-person to your home, call and text you, and send you physical mail or emails at reasonable hours during the day. However, there are some stipulations to how they can conduct themselves and the tactics they can use to encourage you to repay your debts.
Debt collectors can contact third parties–such as your employer, a non-relative, or a legal professional–solely for the purpose of getting the location or contact information of a debtor. During this communication, the debt collector cannot reveal that the debtor owes money.
A debt collector is allowed to make seven attempted phone calls with you within a week, but can only speak to you once per week about a singular debt. You can tell a debt collector to stop contacting you, whether it’s in-person or via phone calls, texts, or emails.
You do not have to engage with debt collectors at all, and you can request that they completely stop contacting you–they must (by law) comply. However, they can still file a lawsuit against you if it’s within the statute of limitations.
In order for them to bypass the rules listed below, they need your prior consent or permission from a court.
Prohibited Debt Collection Practices
There are tactics and behaviors debt collectors legally cannot engage in. If they do, you may have a strong defense if they pursue legal action against you, or you can report them to the federal Consumer Financial Protection Bureau and Pennsylvania’s Office of Attorney General.
Method of Communication
- Debt collectors cannot contact you before 8:0 AM or after 9:00 PM or contact you at unusual times or places.
- They typically cannot contact you at work if they are aware that your employer disapproves.
- They cannot contact you when they know you are represented by an attorney.
- They cannot exceed seven attempted calls in a week, and cannot call you again after speaking with you once within that week for a single debt.
Harassment
- Debt collectors are not allowed to threaten you with violence or harm.
- They cannot publish a list of consumers who have not or refuse to pay their debts, unless this list is issued to a credit bureau.
- They cannot use obscene, offensive, or profane language when contacting you or in attempts to contact you (including when contacting third parties).
False Statements
They cannot lie, mislead, or make false statements to debtors. This includes:
- Falsely claiming to be connected to or affiliated with the government
- Implying they are lawyers or that you have committed a crime
- Implying that documents sent to you are legal documents when they are not, or that they are not legal documents when they are
- Misrepresent information in any way, including giving you a false name, lying about the amount or legal status of your debt, or threatening to pursue legal action when they have no grounds or intention to do so
Unfair and Unconscionable Practices
Debt collectors cannot:
- Collect any amount of money greater than the debt you owe (unless permitted by your debt agreement or the law)
- Deposit a predated check prematurely
- Contact you by postcard, especially if it makes information about your debt publicly viewable (inside of a seal envelope may be acceptable)
- Contact you on social media if the message is publicly viewable (such as a comment on a post)
- Deceptively make you accept and pay for collect calls or telegrams
If you suspect your debt collector is participating in illegal practices in an attempt to collect on your debt, there are steps you can take. Contact The Phenix Group today to explore your options!