Spring 2007-05 A summary of Fair Debt Collection Practices Act rules

Number 67
Spring 2007

A summary of Fair Debt Collection Practices Act rules

Harassment

Debt collectors may not harass, oppress, or abuse anyone or any third parties they contact. For example, debt collectors may not:

use threats of violence or harm;
publish a list of consumers who refuse to pay their debts (except to a credit bureau);
use obscene or profane language; or
repeatedly use the telephone to annoy someone.

False statements

Debt collectors may not use any false statements when collecting a debt. For example, debt collectors may not:

falsely imply that they are attorneys or government representatives;
falsely imply that the debtor has committed a crime;
falsely represent that they operate or work for a credit bureau;
misrepresent the amount of the debt;
indicate that papers being sent to the debtor are legal forms when they are not; or

indicate that papers being sent to the debtor are not legal forms when they are.

Debt collectors also may not state that:

the debtor will be arrested if he or she does not pay the debt;
they will seize, garnish, attach, or sell the debtor’s property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
actions, such as a lawsuit, will be taken against the debtor, which legally may not be taken, or which they do not intend to take.

Debt collectors may not:

give false credit information about the debtor to anyone, including a credit bureau;
send the debtor anything that looks like an official document from a court or government agency when it is not; or
use a false name.

Unfair practices

Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:

collect any amount greater than the debt, unless state law permits such a charge;
deposit a post-dated check prematurely;
use deception to make the debtor accept collect calls or pay for telegrams;
take or threaten to take the debtor’s property unless this can be done legally; or
contact the debtor by postcard.

Source: Federal Trade Commission

Spring 2007-05 A summary of Fair Debt Collection Practices Act rules

Practice Areas