You have the legal right to dispute the validity of an alleged debt.
The Fair Debt Collection Practices Act regulates debt collectors and protects debtors' rights. More specifically, the FDCPA addresses the abusive or deceptive collection practices of some debt collectors, and it empowers debtors to stop these abusive practices. The FDCPA is a federal law that gives you the right to ask collectors to stop contacting you. However, if a bank calls after you sent it a cease letter, you may have to look to your state's laws for help.
Common Complaints
The FDCPA is enforced by the Federal Trade Commission. Some of the more common complaints the FTC receives from consumers include harassment of the debtor and his family members, misrepresenting the alleged amount owed, threatening serious consequences if the debt remains unpaid, revealing the debt to third parties and calling the debtor's place of employment. Many complaints address debt collectors who continue to contact consumers after receiving a cease contact letter. If your bank's debt collection agency or collections attorney calls after a cease letter, you have the right to file a complaint with the FTC at 1-877-FTC-HELP.
Who Must Comply
Any individual or company that regularly engages in the business of debt collection, including employees of debt-buying and debt collecting agencies, must comply with the FDCPA. Debt collection attorneys and law firms also must comply. Creditors, such as banks, credit card companies and hospitals, do not have to comply with the FDCPA when trying to collect their own debts. If your bank is trying to collect a debt you owe, its debt collection practices are governed by your state's specific collection harassment laws. However, if the bank hires a collection agency or lawyer, those parties must adhere to the FDCPA.
Cease Contact Letter
If you are being harassed by your bank's debt collection agency, you have the right to send it a cease communication notice any time. Although it will not cancel a valid debt you owe, it should stop debt collectors from further contact with you. It is advisable to send the letter by certified mail. The Neighborhood Economic Development Advocacy Project, the Bank Fraud Victim Center and Second Start all offer sample cease contact letters on their websites. You can forward a copy of your letter to the FTC's Consumer Response Center, or if the bank calls after a cease letter and it does not use a third-party collection agency, you can send a copy of the letter to your state attorney general's office.
FTC Actions
The only contact you should receive from a debt collector after sending a cease contact letter should be the creditor's acknowledgement of receipt of your letter and verification of the alleged debt owed, or a letter notifying you the creditor will cease all contact. If you are being harassed by your bank's hired collection agency or law firm, you can report it to the FTC. Some consumers also have won lawsuits against abusive debt collectors. The FTC has also handed out stiff penalties and sanctions against abusive debt collectors and law firms.
Tags: debt collectors, collection agency, your bank, cease contact, your state