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This description is not provided as legal advice, but rather as an illustration of the importance of paying attention to your rights. If legal advice is needed, please consult with your attorney.
The
Fair Credit Reporting Act
The Fair Debt Collection Practices Act
Fair Credit Billing Act
The
Fair Debt Collection Practices Act was established to protect the public from the use of unfair, abusive or deceptive collection tactics. This act specifically applies to anyone who regularly collects debts, including the Original Creditor, such as JC Penney, even though they are a department store, they are still engaged in the practice of debt collection. This may not apply in some instances to attorneys collecting their own debts, or other official government entities and law enforcement, such as the IRS, or a probation officer. The following includes the Federal Trade Commissions' most recent interpretation and definitions:
From this Act Debt Collectors May
Not:
with the debtor when the debt collector is aware the debtor has an attorney (i.e legal representative). The FTC clarified that "Attorney" includes "Attorney in Fact" such as a consumer granting another person/entity with Power of Attorney or as Executor/Administrator when they are not an "Attorney at Law." Unless there is no response within a reasonable period of time or when the representation is
withdrawn. Write to anyone regarding a
debt, and disclosing that debt to anyone other than the debtor and/or their legal representative/attorney.Use abusive or profane language.
This includes calling the debtor a liar or a deadbeat, or racial and religious slurs.Use the telephone to annoy or harass debtors.
This includes repetitive or frequent calls, or threatening to call them at work when it is known to the collector, that it is against your employers wishes. Or calling daily until their demand is granted. "Harass" was also defined as asking you a question, and not letting you answer it.Call debtors' homes before 8:00 am or after 9:00 pm - debtor's time (unless you give them permission). Force debtors to pay for communication (collect calls, toll calls, etc.).Publicize the debt
by printing a list, communicating by postcard, or using an envelope with company name or insignia that indicates the company is collecting a debt or is a debt collector.Call or write debtors at work
against the wishes of the employer. There is no requirement stating this instruction to stop calling/writing AT WORK must be made in writing. (This also preserves your employers' rights.) Use a false name or title.
(Aliases are permitted when the employer maintains an alias to employee record.) Or any title that leads the consumer to believe that the collector is (or is not) what or who they say they are.Ask for, or demand a postdated check
to avoid legal action (or illegal action). However, they may accept post dated checks.Threaten to arrest the debtor.
Or to infer or imply the debtor has committed a crime when he or she has not. Specifically, a collector may not imply the debtor has committed a crime by bouncing a check, because it is only a crime when the check issuer has created evidence of a scheme or ploy to intentionally defraud the payee.Threaten to take legal action
unless they actually plan to do so.Keep calling or writing
the "Consumer" after the debtor has made written request to stop. The term "consumer" includes the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or
administrator.Threaten or imply physical harm to anyone, or to damage/destroy personal property.You are not required
by law to communicate with "Debt Collectors." You have the right to "Avoid" Debt Collectors. You can only be compelled/required to pay debts such as taxes, alimony, fines, child support, etc. This law was founded on the principle of "Fair Play" and defining what that means, and governing those that practice collection.
Title 15 USC 1601-1692 As amended by Public Law 104-208, 110 Stat. 3009 (Sept. 30, 1996)
Our Response: If you owe a debt, pay it as quickly as you can. Make it a priority - or they will. If a collector is, in your opinion, intentionally violating this law, get witnesses and document it, then report their
crime.
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Fair Credit Billing Act
A Billing Dispute is when you as the consumer are not satisfied with the goods or services, or delivery of such for which you are sent a bill - or even when you are disputing the interpretation of an agreement for delivery of goods and services. Therefore, the example shown below does not apply. You should however make your dispute known in a similar fashion, which you can later use if you need to seek other legal remedies.
A Billing Error is when you notice you are billed for goods or services not received, or other mathematical or factual errors including failing to credit your payments or billing you twice for one transaction. The law applies to "open end" credit accounts, such as credit cards, revolving charge accounts - such as department store accounts - and overdraft checking accounts. It does not cover installment contracts - loans or extensions of credit you repay on a fixed schedule. Consumers often buy cars, furniture and major appliances on an installment basis, and repay personal loans in installments as well.
Example Billing Error and Application of this law:
John Doe purchases a lawn mower on his Sears charge card for $300.00. Thirty days later he receives his statement billing him for $900.00 (showing a $600.00 mistake!). He must send notice to Sears of this mistake in writing within 60 days of receiving the erroneous statement. He should also include in his letter a copy of the Erroneous Statement, Charge Receipt (or other documentation) clearly spelling out his dispute, account number and date of error. USC Title 15
Note: Most Credit Card and Department Stores have the Fair Credit Billing Act printed on the reverse of their statement along with correct disputing addresses.
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