Credit Collection Act - Debt Collectors, Credit Disputes and Your Rights.

If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your account balances, or an error is made on your accounts, you may be contacted by a "collector." You should know in either situation, the Fair Debt Collection Practices Act requires collectors to treat you fairly by prohibiting certain methods or actions of collection. Of course, the law does not forgive any legitimate debt you owe. Below are answers to commonly asked questions about your rights under the Fair Collection Practices Act.

What debts are covered?

Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

Who is a collector or collection agency?

A person or agency, other than the creditor, who regularly collects unpaid balances owed to others. Under a 1986 amendment to the Fair Debt Collection Practices Act, this also includes attorneys who collect these balances on a regular basis.

How may a collector contact you?

A collector or agency may contact you in person, by mail, telephone, telegram, or FAX. However, a collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A collector may not contact you at work if the collector is aware that your employer disapproves.

Can you stop a collector from contacting you?

You can stop a collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact. The agency may notify you if the collector or the card company intends to take some specific action.

May a collector contact anyone else about your situation?

If you have an attorney, the collector may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors usually are prohibited from contacting such permissible third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

What must the collector tell you about the situation?

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

May a collector continue to contact you if you believe you do not owe money?

A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof that the balances are yours. Proof such as a copy of a bill for the amount owed.