The Fair Debt Collection Practices Act (FDCPA) protects private consumers from unfair debt collection practices, including harassment, deception, threats, and abuse. Once a debt is transferred from the original creditor to a covered collection agency, the FDCPA requires collectors to inform you of your right to dispute the validity or amount of the debt. Failure to do so within the prescribed time period, however, may result in an automatic legal assumption that you owe the uncollected amount.
Discuss your right to challenge a debt under the FDCPA with dedicated consumer protection attorney Jibreal S. Hindi by calling (844) 542-7235 or connecting with his office online.
The FDCPA only applies to certain debts and collectors. In general, only individual – not business – debts are protected. These include the following:
Further, FDCPA provisions do not apply to the original creditor. They only apply once a debt is transferred to a collections agency.
Many debts get sent to collections not because of the consumer’s inability to pay but because the consumer disagrees with the charge. For example, refusing to pay ‘surprise’ medical bills for services not duly provided. When a collections agency receives the debt, it is required to notify the alleged debtor in writing that he or she has 30 days to dispute all or a portion of the debt.
This dispute could involve claims that you previously paid a portion of the alleged amount, that the debt resulted from identity theft, or that you disagree with the debt entirely. The collections agency is then required to stop all collections efforts until it mails the consumer verification of the debt. Debt verification generally means a legal judgment or signed promissory note or loan. Along with your dispute, an FDCPA lawyer might also help you submit evidence of previous payments or negotiations. Always remember that oral disputes with agents over the phone are not enough to trigger FDCPA protections.
You must dispute the debt in writing, including via email or a website, within 30 days.
If a debt collector cannot verify the debt after a valid dispute, collection efforts must cease. A consumer protection lawyer might also help you recover monetary damages if the agency reports an unverified and disputed debt to a credit agency or unlawfully continues collections.
Bad consumer debts often change hands multiple times. It’s common for previous agreements and paperwork to get lost during the transfer process. The further the debt travels from the original creditor, the more likely it is that the collections agency will not be able to provide debt verification or defend against disputes. If you need help disputing a debt – even after the 30-day time period expires – contact dedicated FDCPA dispute lawyer Jibreal S. Hindi by calling (844) 542-7235 or connecting with his consumer protection team online.