CURRENT ISSUES
Topics of Interest to Consumers 

FACT SHEET:  FAIR DEBT COLLECTIONS PRACTICES  

            Federal and state laws together limit what a credit may do in an attempt to collect a debt.  In Massachusetts, similar rules and regulations apply to a creditor’s own debt collection employees and to an outside collector with whom a creditor may contract to collect certain debts.

What is a collector supposed to do when first contacting me? 

            A collector’s first contact with you may be by phone, but within five days of that contract a written notice must be sent to you that identifies the name of the creditor, the amount of the debt and what you should do to dispute the debt’s validity. 

What should I do if I disagree about the debt’s validity? 

            A creditor whose employee is trying to collect money from you should provide reasonable documentation to verify the validity of the debt, at your request.  A collection agency should obtain documentation from the creditor who hired it, also at your request.  Failure to provide reasonable verification should be reported to the proper authorities (see below). 

Can a collector contact anyone but me? 

            A collector is not permitted to disclose or imply the existence of a debt to anyone not a party to the debt itself.  Conduct is limited by the collector’s knowledge of where you live or work.  If a collector calls you at home or your workplace, a third party cannot be told the purpose in trying to reach you is connected to a debt.  A collector cannot attempt to contact you at work if there is reason to know that your employer does not approve of such contact.  If you wish to prevent collection calls to your workplace, you must write a letter to the collector stating that calls to your place of employment are unacceptable to your employer. 

            If a collector does not know where you live, the law allows calls to third parties, like your neighbors, in an effort to determine your location.  Identification as a collector or providing the name of the company is not allowed unless the person receiving the call expressly requests that information.  Even then, a collector working for a credit, as opposed to an outside collection agency, cannot identify the company as the ABC Bank, -- or XYZ Department Store – Collection Department. 

SAMPLE DEMAND LETTER

Always sent this letter by CERTIFIED MAIL – RETURN RECEIPT REQUESTED & by First Class Mail

DATE:

TO:

FROM:

ACCOUNT NO: (if known)

BALANCE DUE: (if known) 

You are hereby notified under provisions of the Fair Debt Collection Practices Act [15 USC 1692c], that you must cease all communications with me after being notified in writing that I no longer wish to communicate with you.  Therefore, I demand that you stop calling me at home, at work, on my cell phone or at any other location!  And further: 

1)                  You and your organization must CEASE & DESIST all attempts to collect the above debt.  Failure to comply with this law will result in my immediate filing of a complaint with the Federal Trade Commission and the Massachusetts Attorney General’s office.  I will pursue all criminal and civil claims against you and your company. 

2)                  Furthermore, if any negative information is placed on my credit bureau reports by your agency after receipt of this notice, this will cause me to file suit against you and your organization, both personally and corporately, to seek any and all remedies available to me by law. In accordance with the federal FDCPA, now that you have received this “stop calling” letter, you may only contact me to inform me that you: 

• are terminating further collection efforts;

• invoking specified remedies which are ordinarily invoked by you or your company; or

• intend to invoke a specified remedy.

Since it is my policy neither to recognize nor deal with collection agencies, I intend to settle this account with the original creditor.  (THIS SENTENCE MAY NOT BE NEEDED IF THE ORIGINAL CREDITOR IS UNKNOWN)

Sincerely, 

YOUR SIGNATURE & PRINTED NAME