What is the Fair Debt Collections Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is a federal law that was created to protect consumers from unfair and abusive behavior by debt collectors.

How does it apply?

The FDCPA applies only when a debt collector is trying to collect money. A debt collector is anyone trying to collect money that is owed to someone else.

For example, if a credit card company turns your account over to a collections agency for them to try to get money from you, the FDCPA applies. However, if the credit card company is contacting you themselves to collect money that you owe them, the FDCPA does not apply.

How does this law protect me?

The FDCPA says that a debt collector may not harass you by mail, telephone or in any other way.

Harassment includes (but is not limited to):

• Yelling at you or calling you names over the telephone
• Calling you numerous times each day or calling at strange times such as early in the morning or very late at night (regardless of what they are saying)

What should I do if I am being harassed by Creditors?

You should contact the Creditor in writing and demand that they stop bothering you. The name for such a request is a Cease Communications Letter. Make sure that you keep a photocopy of any letter you send to a creditor.

What will a Cease Communications Letter Do?

The letter will tell the debt collector that you want them to stop contacting you. If you wish, you may explain in your letter why you are unable to pay or the reason that you feel that you should not have to repay the debt that they are trying to collect.

Once the creditor receives that letter they may only contact you one more time, to let you know that they have received it and to let you know what they plan to do with your account.

If they contact you more than the one time allowed, they are in violation of the FDCPA and you may have a legal claim against them.

What will a Cease Communications Letter NOT do?

A Cease Communications Letter will not get rid of the debt. It just means that the debt collector will have to stop contacting you. They can still sue you in Court. If a Creditor successfully sues you, they will get a judgment against you and they could possibly garnish your wages or put a lien on property that you own.

What should a Cease Communications Letter say?

Below is a sample letter you may use to send to your Creditors or in drafting your own. The letter is intended only to be a sample of how such a letter should be drafted. Community Legal Aid Services cannot represent you in this matter. We can make no guarantee that sending a letter based on our sample will successfully resolve your problem.

DATE_________________________

TO

____________________________

____________________________

____________________________

(Collection Agency's Name and Address)

RE:____________________________

(Creditor's Name and Your Account Number)

NOTICE TO CEASE COMMUNICATIONS

Dear Debt Collector:

You are hereby notified to immediately cease all communications with me regarding the collection of a debt. This includes any communication by telephone, mail or any other medium to either my home or place of employment.

______ I am financially unable to repay the debt at this time.

______ I do not think that I owe this debt because:

______The product was defective

______ I never received the product or service

______ I have already paid

______ I was improperly charged

______ The debt is not enforceable

__________________________________

(reason)

___________________________________

(other)

______ I choose not to provide an explanation as to why I am not repaying the debt at this time.

Any further contact by you would be a violation of the Fair Debt Collection Practices Act and could result in a judgment against you for actual or statutory damages plus attorney fees.

Sincerely,

_______________________________________

_______________________________________

_______________________________________

(Your name and address)