Are there any laws which debt collectors need to follow?
The Federal Trade Commission has established a set of regulations which all debt collection agencies must follow or potentially face legal action. In the Fair Debt Collection Practices Act, rules are specifically defined for debt collecting agencies to follow.
Aside from the federal level, many states have enacted laws which provide extra protection for the consumer. State collection laws for individual states can be viewed at BCS Alliance.
Debt Collections keeps calling me for someone I do not know. How do I stop this?
Rest assured you are at no risk at all in tarnishing your credit report. You are advised to write the debt collector. Send the debt collector a certified letter stating that nobody by the name or phone number lives at your address. Request to cease all communications immediately to your phone number regarding the debt.
Can my family/friends/boss find out about this?
Absolutely not. Under the Fair Debt Collection Practices Act, the only parties which this debt will be made available to are the individual, the creditor, an attorney who is representing one of the parties, and a credit bureau.
I have a very old debt. Am I requires to pay it off?
"Debt selling" is becomgin a very common practice where companies buy old debt for cheap and attempt to collect the full or most of the amount and reap huge profits.
If you debt is over 7 years old, many experts recommend not paying the debt. This is a complicated decision however, and it is advised to contact the National Foundation for Consumer Credit to discuss such matters. You may visit their website at www.nfcc.org.
Can I sue a collector for violating my rights?
Yes you can. Under the Fair Debt Collection Practices Act (FDCPA), you may sue a collector in state or federal court within 1 year of when you beleive the violation occured. Damages suffered, court costs, and attorney's fees, and up to $1,000 can be recovered.
It is recommended you hire an experienced attorney in this area. The National Association of Consumer Advocates (www.naca.net), lists a directory of attorney's with experience in this area.