Do You Know Your Rights Under the Fair Debt Collection Practices Act?

A recent CNN Money article claims that complaints to the FTC regarding FDCPA violations were up 50% in 2009, and are looking to jump another 13% this year. It seems a lot of people aren’t paying their bills, and collections agencies are struggling to collect the debts in a legal way. They are resorting to these thug-like tactics. And you may not even have to owe any money to feel the brunt of their abusive methods.

I recently shared that I’d been confronted by a couple of repo thugs regarding my neighbors car repossession. They claimed to think that I was hiding my neighbor’s car in my garage. They were knocking on my door after 9pm, told me about my neighbors debt, accused me of a criminal act, and didn’t identify themselves. If car repossession companies fall within the restraints of the Fair Debt Collection Practices Act (FDCPA), then these chumps were major violators, as the 4 actions above are all illegal according to the Act.

Do you know your rights under the FDCPA? A quick visit to the FTC’s Debt Collection FAQ page and I learned the following:

Pretty much all types of debts except business debt are covered by the Act. This means that your credit card debt, car loan, and mortgage are all covered.

• A debt collector may not contact you before 8am or after 9pm. And they may not contact you at your work.
• A debt collector is generally not allowed to contact anyone else regarding your debt.
• A debt collector cannot harass you. This means no threats, bad language, or repeatedly using the phone to annoy you.
• A debt collector cannot make false statements like pretending to be a cop or claiming you’ve committed a crime.

If you think you’ve be victim to a FDCPA violation, you can fight back. File a complaint with your State’s Attorney General and with the FTC. You can also contact a FDCPA lawyer, sue the collection company, and if found to be in violation, they could be forced to pay you $1,000. Then you’d have to sick your own debt collection company on them.

Personal Finance Roundup

jim from Bargaineering has a nice, articulate piece on why market timing works, but can’t work for you. Well, unless you have millions to trade that is.

Mike from Oblivious Investor shares his advice for sole proprietor’s preparing for tax time. If you bring in side income I suggest you check it out.

SVB from The Digerati Life shares some new budgeting software options for wesabe.com users since they’re closing shop.

MD from Studenomics seems embarrassed to have to say it, but he lets you know how to live within your means.

Len Penzo shares the 6 most valuable grocery items known to man.

I shared a guest post over at PerkStreet about fixing up your rental. As someone who rented for 10 years before I bought a home, I’d say I’m an expert on this.

Finally, I shared a guest post at One Money Design about why your 401K may not be that great and I gave some tips to fix things.

From the carnivals… Festival of Frugality, Carnival of Personal Finance, Tax Carnival, Festival of Stocks, Carnival of Financial Planning
photo by Tweek

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