Borrowers’ Rights under the Fair Debt Collections Practices Act (FDCPA) (Pt. 3)

May 27, 2014

Concluding Borrowers’ Rights under the Fair Debt Collections Practices Act (FDCPA), here is some final essential information that borrowers should know when it comes to their rights and dealing with creditors.

When debt collectors violate the terms of the FDCPA, borrowers can sue them. If you are considering suing a debt collector, contact Jon B. Clarke for a consult.

When debt collectors violate the terms of the FDCPA, borrowers can sue them. If you are considering suing a debt collector, contact Jon B. Clarke for a consult.

FDCPA: More Prohibited Conduct for Creditors

In addition to not calling borrowers at weird hours, incessantly and at work, other things that third-party debt collectors are NOT allowed to do when it comes to communicating with borrowers about outstanding debt include NOT:

  • Lying about the debt owed – At no point during their communications with borrowers are debt collectors legally permitted to lie about the debt and/or their identities. For example, debt collectors cannot present themselves as lawyers, they cannot lie about the amount of debt owed, they cannot attempt to seek amounts of money in addition to the specific debt owed, etc. Any misrepresentation of the debt or the identity of the debt collector is a violation of the FDCPA.
  • Threaten borrowers or use profane language when speaking to them – Debt collectors are strictly prohibited from using any coercive tactics in their efforts to collect an outstanding debt. While this means that they cannot try to threaten borrowers by, for instance, saying that borrowers will be arrested if they don’t repay their debt, it also means that debt collectors can’t use any abusive or explicit language when talking to borrowers about the debt.
  • Discussing the debt with third parties or publishing borrowers’ names on “bad debt” lists – Debt collectors are not legally allowed to discuss the nature of borrowers’ debts with anyone other than the borrower himself, the borrower’s spouse and/or the borrower’s attorney (if the borrower has one). Additionally, debt collectors cannot try to shame borrowers into payment of the debt by publishing their names on any type of “bad debt” list. In other words, borrowers have the right to expect that their financial matters will remain private.

FDCPA: Penalties for Debt Collectors Who Violate Borrowers’ Rights

Debt collectors who have violated any aspect of the Fair Debt Collections Practices Act can be fined as much as $1,000 (plus a borrower’s attorneys’ fees), according to the provisions of the FDCPA. Additionally, some debt collectors may be ordered to pay further awards in the form of punitive damages (which can far exceed the statutory awards in these cases).

Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.

If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.

For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.

Categories: Blog, Debt Delinquency, Fair Debt Collection Practices Act