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There is an attitude among some in the debt-collection industry that those who do not pay their debts are deadbeats. This widely-used term seems unnecessarily harsh. In my judgment, this attitude led to unfair debt-collection practices, which in turn led to the Fair Debt Collection Practices Act. The act applies to so-called consumer obligations. Generally, this means that the obligation to pay arose out of a transaction in which the object of the transaction, usually money, was used primarily for personal, family or household purposes. The act provides considerable protection for the debtor. Among other things, a debt collector may generally not communicate with anyone regarding your debt except you, the creditor, or appropriate attorneys. Advising employers and neighbors about the "deadbeat" is no longer a permitted practice. A debt collector is not even allowed to communicate with the debtor by postcard or use any language or symbol on the outside of an envelope that suggests the subject matter is the collection of a debt. A debt collector cannot represent that non-payment will result in arrest or imprisonment, nor can he suggest that a garnishment will occur, although a garnishment is legal, unless the debt collector or creditor in fact intends to take such action. Idle threats are not allowed. Once the debt collector receives a written notice that you refuse to pay the debt (perhaps it is legitimately disputed) or that you want the debt collector to stop any further communications with you, he or she must stop contacting you. Other remedies may be pursued, including a lawsuit, but the continuing practice of calling or writing in an attempt to collect the debt must stop. Creditors are entitled to repayment. The intent of the act, however, was to protect consumers, particularly unsophisticated consumers, from unfair and abusive treatment. It appears to acknowledge that most of us do not willingly fail to pay our debts. Losing a job or your health is serious enough. You do not have to lose your dignity as well. |