Phoenix Debt Relief – FAQ about Debtor's Rights under the Fair Debt Collection Practices Act (FDCPA)

Phoenix Debt Relief FAQ about Debtor's Rights under the Fair Debt Collection Practices Act (FDCPA)

Under the Fair Debt Collection Practices Act (FDCPA), debtor's have many rights. Below are eight frequently asked questions about debtor's rights and debt relief.

Question #1 What debts are covered? Debts that are incurred by a consumer for personal, family, and household purposes are covered. Some examples of these covered debts are personal automobile loans, medical bills, and personal credit card balances.

Question #2 Who is a debt collector? A debt collector is any person other than the original creditor who is trying to collect outstanding debts owed by a person. This can now include attorneys who regularly collect debts which is stated in the 1986 amendment to the FDCPA.

Question #3 Can a debt collector talk to anyone else about a debtor's debt? Unless prior consent has been given by the debtor, no a debt collector cannot contact anyone else about the debtor's debt. However, if you have a limited power of attorney, your debt settlement negotiator can speak with your creditors on your behalf.

Question #4 How can a creditor or debt collector contact a debtor? A creditor and/or debt collector can contact a debtor in person, by mail, telephone, telegram, or FAX. They cannot contact the debtor at a time that is known to be inconvenient such as before 8 o'clock in the morning and after 9 o'clock at night. Along the same lines a debt collector cannot contact a debtor at their place of employment.

Question #5 Can a debtor stop a collector from contacting them? Yes, they can request to cease communication by writing a letter to the debt collector. However, this will stop both telephone calls and all written communication such as a debt settlement letter from the creditor.

Question #6 What must the debt collector tell a debtor about their debt? The collector must send the debtor a written notice giving the amount of the debt owed, name of the creditor to which it is due, and the action that is needed to dispute the debt. The debt collector must do this within five days after first contacting the debtor.

Question #7 If the debtor doesn't like they owe the debt, can the debt collector continue to contact the debtor? No, the collector cannot continue to contact the debtor if the debtor sends the collection agency a letter within 30 days stating they don't owe the debt. However, if the debtor is sent verification of the debt by the creditor, the debt collector can renew collection activities towards the debtor.

Question #8 What control does a debtor have over payment of debts? If more than one debt is being collected by a collector, the debtor has the right to apply payment to which every debt they indicate.

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