How Does Consumer Debt Collection Work?

When a consumer owes debt to a creditor, or when the debt has been turned over or sold to a debt collector, the consumer will likely be contacted about the debt. It is important for consumers to know that they have certain protections under the Fair Debt Collection Practices Act (FDCPA), and that debt collectors cannot take certain actions or engage in particular behaviors according to the law. In order for a consumer to understand when they are being treated fairly (and when they are not), it is necessary to have an understanding of how the consumer debt collection process works.

Debt Collectors are Permitted to Contact You But Must Comply With the FDCPA

The Fair Debt Collection Practices Act (FDCPA) governs consumer debt collection practices. Under the FDCPA, debt collectors are permitted to contact consumers to try to collect debts, but there are certain restrictions, and some practices are unlawful. Consumers should know their rights under the FDCPA.

Certain Debt Collection Practices are Unlawful

Specific types of debt collection practices are unlawful under the FDCPA, including but not limited to:
  • Misrepresenting themselves, or anything about the debt owed;
  • Lying about their identity, or claiming to be law enforcement or an attorney;
  • Threatening to arrest you, or have you arrested, if you do not pay your debt;
  • Calling you at work after you have requested that work calls cease; and
  • Contacting you between the hours of 9 p.m. and 8 a.m.
These are just some of the debt collection practices that are unlawful under the FDCPA. To be clear, debt collectors are permitted to contact you, but they cannot contact you at certain times or in certain manners, and they cannot use practices that are unfair or deceptive.

Debt Collectors Must Stop Contact and Collection Actions When You File for Bankruptcy

You also have protections from debt collectors when you file for bankruptcy. Any debt collection processes must stop once you file for consumer bankruptcy because the automatic stay will apply to your case. The automatic stay is an injunction that halts debt collection actions by creditors or debt collectors, including wage garnishments, lawsuits, and even calls or texts attempting to collect the debt you owe.

Violations of Consumer Protections are Taken Seriously

Whether a debt collector violates the FDCPA or violates the automatic stay after you have filed for bankruptcy, you should know that these violations are serious. You may be able to file a complaint against a debt collector who violates the FDCPA. There are severe consequences for a creditor or debt collector who violates the automatic stay, and for willful violations in particular. In those circumstances, creditors or debt collectors can be responsible for damages, attorney’s fees, and other costs.

Contact an Oak Park Consumer Protection Lawyer

If you have questions about your rights under the FDCPA, or your rights after you file for consumer bankruptcy, you should seek advice from an experienced lawyer who can help you. One of the Oak Park consumer protection attorneys at our firm can speak with you today. Contact the Emerson Law Firm for more information.


See Related Blog Posts:

Five Things to Know About Your Rights Under the FDCPA

Debt Collectors Cannot Charge “Pay-to-Pay” Fees

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