Whether or not you are currently in bankruptcy, the Fair Debt
Collection Practices Act (FDCPA) requires that debt collectors treat you
fairly by prohibiting certain methods of debt collection. Personal,
family and household debts are all covered under the FDCPA. This
includes auto loans, medical care bills and charge accounts. However,
business loans are not covered by this law. Paying bills on time is
generally the best way to avoid creditor harassment. However, sometimes
people fall into financial circumstances that prevent them from being
able to honor the debt and they fall behind on the payments.
Most creditors and collection agencies follow the law when attempting
to collect a debt. But some don’t, and many times, an abusive creditor
is the reason why debtors may feel forced to file for bankruptcy
protection—to get the creditor to stop harassing them. You should never
allow an abusive bill collector to force you into bankruptcy. However,
if your circumstances prevent you from any other action, you still do
have legal rights. Once you file for bankruptcy protection, creditors
are formally notified you are in bankruptcy, and collection attempts
must immediately cease until your case has been discharged or has
otherwise decided upon by the courts.
If you have filed for bankruptcy and a debt collector calls, politely
tell them that you are in bankruptcy and give them your case number.
This usually gets them to stop calling or otherwise attempting to
contact you. Some debt collectors persist by asking if you want to
re-affirm the debt and they may also make a lot of promises to you if
you agree to re-affirm the debt. Beware of any promises, they make. Debt
collectors are paid to collect debts, and they will try any means to get
you to pay, including making promises the creditor has no intentions of
keeping. The best thing to do is to politely but firmly tell them you do
not want to re-affirm the debt. If the creditor persists in trying to
collect from you, even after you’ve told him or her that you are in
bankruptcy and that you are not interested in re-affirming the debt,
contact your michigan
bankruptcy
lawyer immediately for legal advice on your next course of action.
Creditor harassment is an excessive quantity of pressure from a
creditor or debt collector to pay a debt. It may involve threats of
violence, threats to embarrass the debtor, false information, excessive
number of telephone calls or home visits or general nastiness.
Section 60 of the Trade Practices Act 1974 (C'th) states: "A
corporation shall not use physical force or undue harassment or coercion
in connection with the supply or possible supply of goods or services to
a consumer or the payment for goods or services by a consumer."
Debt collectors cannot harass, oppress or abuse any person. They also
can't use unfair practices or make false statements. Unlawful acts by
debt collectors include:
-
Falsely implying that
he or she is an attorney or government representative.
-
Falsely implying that
you have committed a crime.
-
Indicating that
correspondence they send you is from an attorney when it is not.
-
Implying that
nonpayment of any debt will result in loss of personal property,
wages, or that you will be arrested unless (a) it is lawful and (b)
the creditor intends to follow through with such action.
-
Threatening to take
action that is not legal or that the creditor does not intend to
take.
-
Implying that the
transfer of interest in the debt to someone else will result in loss
of personal property or wages, or that you will be arrested.
-
Falsely representing
that you committed a crime in an effort to disgrace you.
-
Misrepresenting your
credit or failing to communicate that you are disputing a debt.
-
Using written
communication which simulates or is falsely represented to be a
document authorized, issued or approved by any court, official or
agency of the U.S. or any state, or which creates a false impression
as to its source, authorization, or approval.
-
Contacting you by
post card.
-
Using any false or
deceptive means to attempt to collect a debt or obtain information
about a consumer.
-
Failing to disclose
clearly in all communication that the debt collector is attempting
to collect a debt and that any information obtained will be used for
that purpose.
-
Falsely implying that
accounts have been turned over to innocent purchasers.
-
Falsely implying that
documents are part of the legal process when they aren’t.
-
Falsely stating that
papers being sent to you are not legal process forms when they are.
Using any business, company, or organization name other than the
actual name of the debt collector's business. Falsely stating that a
debt collector is employed by a consumer reporting agency.
A debt collector is any person or agency, other than the creditor,
who regularly collects debts owed to others. Under a 1986 amendment to
the Fair Debt Collection Practices Act, this also includes attorneys who
collect debts on a regular basis.
If you believe you have been unfairly treated, you have the right to
sue the collection agency in a state or federal court within one year
from the date your rights were violated. You could potentially recover
money for any damages you may have suffered as well as court costs and
attorney's fees You should also report any problems you have with a debt
collector to your state's Attorney General's office and the Federal
Trade Commission (FTC). Contact a qualified
michigan bankruptcy
lawyer for more information about state and federal debt collection
laws and for any legal advice or assistance in your claim.
The Federal Trade Commission (FTC) provides a brochure about credit
repair scams in Adobe Acrobat Portable Document Format (PDF). Click
here to download it.
Contact an experienced and reputable michigan
bankruptcy
lawyer for more information on your rights under the Fair Credit
Reporting Act (FCRA) and the Consumer Credit File Rights Under State and
Federal Law. If you need to file for bankruptcy, contact MichiganBankruptcyLawyer.com now. |