The government has made a number of debt laws in order to protect the rights of the financially distressed consumers. These laws aim at protecting the consumers against dishonesty, fraud, false pricing, and unfair advertising. These consumer protection laws also help US consumers safeguard themselves against any kind of sham practices of the credit card companies. Such debt laws will address grave issues like applications for new lines of credit, credit collection, and credit repair. If a consumer is knee deep in debt and seeks debt help from a debt relief company and meets with some unfair practices, he can easily take advantage of such laws to prevent him from being a victim. Read on to know more about such laws.
Stay protected from unfair collection calls under the FDCPA law
The FDCPA or the Fair Debt Collection Practices Act protects consumers against the unfair measures used by debt collectors and credit collection agencies. The debt collection practices constitute an important part of the credit management under the Consumer Credit Protection Act. To get rid of the unfair practices practiced by the debt collectors in the US, this law has now become applicable in all the states of the USA. Have a look at the limitations this law imposes on the debt collectors in order to protect the right of the consumers seeking debt relief
Restricts collectors from contacting a third party: The Fair Debt Collection Practices Act (FDCPA) prohibits the debt collectors from contacting any third party who does not owe any money directly to the creditors. Here, third party usually refers to neighbors, relatives and employers of the debtor. But the credit collection agency can contact the co-applicant of the debtor.
Collectors cannot extract money by false threatening: The FDCPA laws also prevent the debt collectors from extracting money from the debtors by giving false threats. They can, in no means, ruin your credit score and go for any repossessions or garnishments.
Prohibits making phone calls at odd hours:According to one of the clause of the FDCPA law, it is stated that no debt collector can call a debtor at any point of time during the whole day. The collectors can call the debtors within 8.00 AM to 9.00 PM. The debt collectors are not allowed to make calls at your office if your office policy does not allow it.
As a debtor seeking debt help, you have got the right to penalize a debt collector if you see him violating any of the FDCPA norms. You can sue him within a span of one year since he has committed the violation. Thus take advantage of such laws and help yourself take an informed and a measured decision.