Debt collectors are obligated to identify themselves in any correspondence with a debtor under the Fair Debt Collection Practices Act. This law prevents collection agents from duping consumers into returning calls or other contacts without knowing what they’re talking about.
The FDCPA also includes privacy safeguards that prevent debt collectors from sharing any information about a customer’s debt to a third party. This includes the fact that the customer is in debt in the first place. This has traditionally meant that collectors could not leave a message on a person’s answering machine for fear of a third party hearing it; the collector also cannot reveal the nature of the communication (that the call is for collection purposes) without infringing on the consumer’s privacy.
Some debt collectors have been sued for invading debtors’ privacy by leaving messages on answering machines that could be viewed by a third party. Others have been sued for not properly identifying themselves as collectors by leaving unclear answering machine messages. Courts have concluded that collectors must abide by all aspects of the FDCPA, and that they may not violate one condition to satisfy another. The main conclusion is that debt collectors are not allowed to leave messages on answering machines or voicemails under the FDCPA.
Debt collectors have long pushed for changes to the FDCPA that would allow them to leave messages without risking FDCPA breaches. An amendment to the Fair Debt Collection Practices Act of 2012, called the “Fair Debt Collection Practices Clarification Act of 2012,” was introduced to Congress earlier this year that would help them achieve their goal. By enabling collectors to leave messages, the amendment would weaken consumer privacy protections, but it would also oblige the Consumer Financial Protection Bureau to develop formal language for collectors to use when leaving phone messages.
Although it is unclear whether this amendment will succeed, debt collectors must respect debtors’ privacy rights while providing full and honest disclosure in all communications for the time being.
One thing to keep in mind concerning the FDCPA is that it only applies to debt collectors, not the original creditor from whom you borrowed. The FDCPA does not bind creditors; it only binds third parties to whom debts are sold or assigned for collection. A few states, however, have their own debt collection laws that require original creditors to follow FDCPA-like guidelines as well. We know that such rules exist in California, Utah, and Wisconsin, and that they may exist in other states as well, but it’s difficult to determine for sure until courts interpret the statutes on the books. We’ll learn which other states expand FDCPA safeguards to consumers when dealing with original creditors when courts hear cases and issue judgements based on these laws.
Do debt collectors leave voicemail?
Debt collectors may be abrasive, but they must adhere to certain guidelines. You should notify the authorities if a debt collector is harassing you in any way. Although they are legally permitted to leave you a voicemail, they must do it on a private mobile phone where they are certain it will not be overheard by others. Do not tolerate debt collectors who break the Fair Debt Collection Practices Act (FDCPA). Always keep a copy of your voicemail messages and any other evidence that could be used in court.
How many times can a debt collector leave a voicemail?
The Fair Debt Collection Methods Act (FDCPA) was passed to protect borrowers from unfair and abusive debt collection practices. The FDCPA does not set a limit on how many times a debt collector can contact you. It does, however, place some limitations on how a debt collector can engage with you.
A debt collector is presumed to be in violation of federal law if it places telephone calls to a specific person in connection with the collection of a specific debt in either of the following circumstances, according to a final rule that takes effect in late 2021 and amends Regulation F, which implements the FDCPA.
- The debt collector calls within seven days of speaking with you on the phone about the debt. The first day of the seven-day period is the date of the telephone discussion. (See 12 C.F.R. 1006.14)
This restriction applies to each individual loan, not to each individual customer. As a result, if you owe on multiple loans, a debt collector may contact you more frequently. There are three exceptions to this telephone call frequency limit:
- Calls made to certain professionals, such as your lawyer. 12 CFR 1006.14(b)(3)
Who Has to Comply With the FDCPA?
The FDCPA primarily applies to debt collectors, which are defined as third parties who collect debts owing to another person or corporation. In other situations, however, a debt buyer may be required to follow the law, such as when purchasing a home.
What are debt collectors allowed to say on voicemail?
Debt collectors are likely to contact you if you have unpaid invoices. However, in this day and age of voicemail, debt collectors are more likely to receive your voicemail than a live person. As part of the FDCPA, there are laws in place to safeguard creditors.
The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from disclosing your personal information to a third party. Debt collectors are not permitted to leave a message if your voicemail is shared with your family or roommates, or if it is monitored by your job. Only private voicemail can be used to leave messages.
What are debt collectors not allowed to do?
Debt collectors aren’t allowed to publicly embarrass you into paying money you might or might not owe.
They aren’t even permitted to contact you through postcard. They are not permitted to publicize the names of those who owe money. They are not allowed to discuss the situation with anyone except you, your spouse, and your attorney.
Debt collectors are authorized to make contact with third parties in order to locate you, but they can only ask for your address, home phone number, and place of employment. They may not contact those folks more than once in most situations.
What is the 11 word phrase to stop debt collectors?
You may be afraid and stressed if you are being chased for a debt. Allowing all of the harassing calls from a debt collector to get to you is a bad idea. If you need to take a break from debt collectors, tell them to “please cease and desist all calls and contact with me, immediately.” If you’re approached by a debt collector, here’s what you should do.
If a debt collector reaches you, you have the option of not answering, but this is not a good option. Disregarding phone calls is one thing, but ignoring a summons is another. You should try to determine whether you owe the obligation and whether the statute of limitations is still in effect. The one thing you should never do is affirm that the debt is yours. In court, this could be used against you.
Common Scenarios:
A consumer owing a debt and is unable to repay it at the present moment. He or she receives a call from a creditor or debt collector requesting payment. The consumer informs the collection agency’s collection representative that he or she does not have the funds and will be unable to pay for the following month. The collection agency informs the consumer that it will contact them again in a month to request payment. At that time, the consumer believes they are no longer being harassed by collection agencies. However, two hours later, he or she receives a call from the same collection agency demanding payment once more. The customer tells the collection agent that he or she just got a call that day and told the previous collection agent that a payment couldn’t be made right now, but that it would be possible next month. The debt collector claims it will contact you next month. Now the customer is convinced that he or she will not receive any calls for the next month. However, the same collection agency makes another call to the consumer a few hours later. This time, the customer is irritated and refuses to pick up the phone. The next day, the customer receives three or more calls from a creditor or debt collector attempting to collect a debt, and this pattern repeats itself each day.
This, in my opinion, is the type of aggressive and frequent collection calls that the FDCPA and RFDCPA are designed to prevent.
Do collection agencies have to identify themselves?
Debt collectors are required by the FDCPA to identify themselves when attempting to collect a debt, as well as to tell you that any information you provide will be utilized to attempt to collect the debt. They must also provide you with the name of their firm or agency. Legitimate debt collectors should be able to provide you with a physical address as well as contact information.
If you have a debt collector’s name and identifying information but are still dubious, you may be able to learn more about them by contacting your state’s attorney general or consumer affairs agency.
How long can debt collectors call you?
The statute of limitations is a law that establishes a time restriction for debt collectors to prosecute consumers for unpaid debt. The statute of limitations for debt varies by state and type of obligation, and can last anywhere from three to twenty years. To get you started, here’s a list of each state’s debt statute of limitations – but keep in mind that credit card companies frequently argue in court that the law in their home state (not yours) should apply.
Do collection agencies use robocalls?
Debt collectors utilize robocalls to make a large number of calls to their customers. These robocalls are currently one of the most common types of robocalls. Many individuals have trouble distinguishing between legitimate and unlawful debt collection robocalls, but we’re here to assist.
How many times a day can a debt collector call your cell phone?
What is the maximum number of times debt collectors can contact you without breaking the Fair Debt Collection Practices Act (“FDCPA”)? The number of times a debt collector can call is determined by at least fourteen elements that seem to show whether the debt collector intends to harass, annoy, or abuse the person phoned by phoning repeatedly. The number of times a debt collector can call is also determined by the time period in question. Were the calls made over a period of weeks, months, or perhaps years? Or did the debt collector contact you several times in one day? This article explores the outcomes of call frequency cases that occurred over short and long periods of time, describes many of the examples, and depicts the outcomes in fourteen graphs for comparative reasons. This article also discusses situations in which debt collectors allegedly called individuals anywhere from twice a day to twelve times in one day. Donald E. Petersen, a Florida FDCPA lawyer, looked at over 200 opinions issued by federal trial courts around the country between 1981 and 2017 and found at least fourteen factors that influence the outcome of FDCPA call frequency cases. Mr. Petersen concluded that the results are sometimes predictable if one carefully examines the facts of each case besides the total number of calls and the associated time period after analyzing and comparing the facts and outcomes in over 150 FDCPA call frequency cases that indicated the number of calls and the duration of the calls. However, based only on the total number of phone calls and the duration of the calls, the call frequency scenarios are extremely difficult to reconcile. This page offers fourteen graphs to help readers visualize case outcomes based on some of the information (usually, the number of calls and call duration) and discover any similarities in the courts’ judgements. Two of the graphs compare the amounts of monetary compensation awarded to plaintiffs who seek FDCPA call frequency claims with their recovery for any TCPA claims that are connected.
This article covers four major topics: When a “Wrong Person” (a person who is not the alleged consumer borrower) sues a debt collector under the FDCPA for calling too frequently about a stranger’s debt, (1) how many calls does it usually take for a person’s FDCPA call frequency lawsuit to proceed to trial; (2) when can a “Wrong Person” sue a debt collector for violating the FDCPA by calling too frequently while attempting to collect a debt from a spouse, relative Consumers’ call frequency claims are discussed, including “call pattern” cases based on the number of calls received in a single day and examples where the debt collector contacted back after the customer ended their conversation by hanging up.
This article finishes by analyzing and comparing the details of cases where the court awarded damages to the consumer after the defendant defaulted or after the customer won at trial, in order to determine the worth of FDCPA call frequency claims.
The statutory damages received by successful consumers for FDCPA call frequency claims are compared to the statutory damages obtained by some of these consumer plaintiffs against debt collectors who violated the Telephone Consumer Protection Act (“TCPA”) by robo-dialing the consumer’s cell phone.
(The FDCPA caps statutory damages at $1,000 per case; the TCPA requires statutory damages of at least $ 500 per call and up to $ 1,500 per call if the crimes were willful.)
What can a debt collector say to a third party?
If a debt collector contacts a third party, the debtor’s debt cannot be revealed. Debt collectors harassing other persons to get a debtor to repay a debt were of particular concern to Congress.
In reality, debt disclosure occurs frequently. A debt collector will rarely identify the exact debt or monetary amount owed, but they will occasionally say “they owe money” or “they owe a bill.” “I’m phoning regarding their school debts,” or “a personal financial concern,” they might claim.
Using language like that might be considered debt disclosure, which is illegal.
Debt collectors can only call a friend of family member once
A debt collector is not permitted to contact a third party more than once unless the third party specifically requests it. In other words, if a debt collector phones a consumer’s parents, sister, or coworker, they are prohibited from calling them again until the individual specifically requests it. That has a very small likelihood of happening.
If a debt collector has contacted someone else about your debt, inquire how many times the debt collector has contacted them. There’s a good chance that happened multiple times.
Debt collectors cannot leave messages asking you to call them back
Debt collectors are permitted to call third parties in order to get or confirm location information, but they are not permitted to leave messages with third parties under the FDCPA.
A consumer’s home address and phone number, as well as their employment address and phone number, are considered location information. A debt collector must identify themselves, but only if a third party requests it should they divulge their employer (the debt collector’s name).
In other words, if a debt collector already knows how to contact a customer (they have their address), there’s no need to call a family member, friend, or coworker. The collector cannot send a communication to the third-party, request additional information, or harass the third-party. Even if the debt collector does not mention why they are calling, there is a significant likelihood that if they leave a message, they will expose what they are about, either directly or indirectly.
If a debt collector leaves a voicemail with a consumer’s coworker or family member, for example, the message is usually something along the lines of “Jane Smith, ABC Recovery, 800-888-XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX The company’s name could indicate that it is a debt collector. Furthermore, when a consumer receives a message from a coworker or family member, he or she usually inquires “Do you have any idea what they were talking about when they called?”
Debt collectors cannot demand payment from family or friends
A debt collector may not attempt to collect a debt from a family member or acquaintance who does not owe the debt. If one spouse has a credit card debt, for example, the other spouse is usually not liable unless they were a co-signer on the bill. I’ve represented a number of consumers who were being asked to pay a bill for their spouse (or ex-husband) for which they were not responsible.
In other cases, a debt collector may merely suggest that a family member or acquaintance is accountable for the debt without requesting payment. They may be something like this “Are you able to assist them in any way?” alternatively “Have you ever helped them with their bills?” Questions like these may encourage a family member or friend to assume they are responsible for the debt, which is illegal and in violation of the Fair Debt Collection Practices Act (FDCPA).
Anyone harassed by a debt collector can bring a FDCPA claim
The FDCPA protects innocent persons who are hounded by debt collectors over a debt owed by a friend, coworker, or family member. This implies they can file a claim against a debt collector who is aggressive or harassing them.
In most of these cases, a person who does not owe a bill instructs a debt collector to stop phoning them, but the calls continue. Or a debt collector might not believe the person on the other end of the line–and try to collect a debt from the wrong person.
In the most extreme circumstances, a debt collector may attempt to harass or mistreat someone who does not owe the debt in the hopes of inducing the actual customer to contact and make a payment.
If a debt collector phones your family or friends, or if you receive debt collection calls regarding a family member or friend, you should contact a consumer rights attorney right away to learn about your rights and choices under the FDCPA.
What should you not say to debt collectors?
It’s also critical to keep track of what you shouldn’t discuss with debt collectors during the collection process. The following are three things you should never tell a debt collector:
Never Give Them Your Personal Information
The agent will request personal information in order to verify your identity and debt ownership.
You are not required to respond to these questions. Instead, request that the agent exclusively communicate with you by email.
Never Admit That The Debt Is Yours
There’s no reason to do this, and it could get you in hot water later if you try to dispute the amount as erroneous on your credit report.
Many old debts have bogus interest charges that you aren’t required to pay, but debt collectors will try to collect nevertheless.
It’s advisable to hang up after telling the collection agent to provide you the information in writing. You have the legal right to do so, and we’ll get to that in a moment.
Never Provide Bank Account Information
While you’re on the phone with a debt collector, they’ll try to persuade you to make a payment, even if it’s a tiny one. To complete the transaction, the agent will need your bank account or credit card details. It may appear to be a simple and quick way to end the call and get off the phone. However, this can lead to a number of serious issues:
- You Lose Leverage: Your payment is your leverage when it comes to dealing with debt collectors in the future. So don’t pay too soon and lose your most valuable bargaining chip. Save it for a time when you can receive something in exchange, such as requesting that the creditor delete unfavorable items from your credit report in exchange for a payment.
- You Share Account Information: The agent may claim that he or she will not keep your bank account or credit card information on file. You, on the other hand, have no way of knowing whether or not this is true. Additionally, debt collectors have charged you more than you committed to pay.
- The Statute of Limitations on the Obligation is Reset: Making a payment resets the statute of limitations on the debt. This provides the creditor additional time to file a lawsuit against you for losses.
It’s fine if you wish to pay off the debt or sign a payment plan, especially if it’s part of a larger debt management strategy. But first, acquire a written agreement.
