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

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more