May I tape record calls from the collector?

If the collector is verbally abusive when phoning you or engages in other practices in apparent violation of the law, you might want to gather evidence by taping the calls. Such evidence can be invaluable if you file a complaint with the authorities and if you sue the collector. Be aware that in a dozen states you need to obtain consent from all parties before taping the call.

What can I do if a debt collector violates the law?

Familiarize yourself with the FDCPA, and let the collector know that you know your rights. If you have exhausted all strategies in dealing with the debt collector and the collector continues to use illegal, unfair and abusive practices, you may file a complaint, sue the collector, or both.

Am I liable for the debt if I don't dispute it in 30 days?

The FDCPA (§1692g(c)) says failure to file a dispute does not allow a court to assume you admit liability for the debt. However, being able to establish that you did comply with all statutory requirements may greatly enhance your chances of success. Your goal is to establish the facts and convince the judge or others who decide the matter that you are credible and deserve to have the law applied with its full effect on your behalf.

Are attorneys subject to the FDCPA?

An attorney that regularly collects or attempts to collect consumer debts owed another, directly or indirectly, must comply with the FDCPA. The law also applies to attorneys who act as in-house counsel and who send dunning letters or make telephone calls on behalf of their employer/client.

Does a debt collector have access to my credit report?

Yes. The FCRA lists a number of "permissible purposes" for accessing your credit report. One purpose is for "...review or collection of an account..." (FCRA Sec 604(3)(A)).

If I co-sign a loan, can a debt collector contact me?

Yes, if the person who asked you to co-sign does not pay. When you co-sign a loan, you are guaranteeing that the lender will be repaid - either by the person who asked you to co-sign or by you.

I'm receiving phone calls from a collector. Can I stop the collection agency from contacting me by phone?

You can cease a collector from calling you by writing a letter to the agency telling it not to contact you by phone, not to call at certain times or locations, or not to make any further contact at all. This last request does entitle the collector to contact you one more time to inform you of what, if any, action it intends to take to collect the debt, but not to threaten you.

Does an agency have to contact me in writing before it calls me?

No. A collection agency may contact you first by telephone. Within five days after the phone call, the collector must send you a written notice telling you how much you owe and the name of the creditor that says you owe the money, and how to file a dispute if you don't agree that you owe the money.

A debt collector threatened to sue me and garnish my wages. Can it do that?

A collection agency can file a lawsuit to collect a debt. However, they cannot threaten you with a lawsuit if they have no plans to file one. Furthermore, no collector can garnish your wages without a judge's signature. The Constitution of the United States guarantees you "due process." This means that a collector must sue you and the matter must be heard before a judge before your wages can be garnished. Your employer will not garnish your wages until he receives an official document from the court ordering him to do so. Remember that most threats of this nature are bluffs; however, if you think the collector will carry out the threat, then work out a payment agreement before you get sued.