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BANKRUPTCY - DEBT COLLECTION

The Fair Debt Collection Practices Act as well as other federal and state laws regulates the conduct of debt collectors. The debt collection practices act states a long list of unlawful practices. Violation of these practices can result in private lawsuits. In addition, if a party has already filed for bankruptcy actions that violate Fair Debt Collection Practices Act will also violate the automatic stay of bankruptcy court.

The Fair Debt Collection Practices Act limits a debt collector’s acquisition of local information about the debtor. This information includes the address, telephone number, and place of employment of the debtor. A debt collector cannot state that the debtor owes any debt to anyone other than the debtor. In addition, the debt collector is restricted in number of other ways in obtaining information about the debtor. Restrictions on local information are intended to protect the reputation and privacy the debtor.

Other portions of the Fair Debt Collection Practices Act limit communication with the debtor and others. For example, a debt collector cannot contact the debtor at any unusual time or place (prior to 8 a.m. or later than 9 p.m.). A debt collector cannot contact the debtor at his placed employment if the debt collector knows or has reasons to know that the employer prohibits such contact. A debt collector may not discuss the debt with a third party except for local information (address and telephone number).

The Fair Debt Collection Practices Act also provides that a debtor may notify the debt collector in writing it refuses to pay the debt and he wishes the debt collector to cease further contact. If this is done, the debt collector must cease contact except to advise the debtor of specific collection remedies. This section of the act is to stop contact that is solely meant to harass the debtor.

The Fair Debt Collection Practices Act also limits the extent of harassment or abuse they can be used to collect a debt. The act specifically prohibits the use of the threat of violence as well as obscene and profane language. This section the act also specifically prohibits the publication of deadbeat lists.

Additional prohibitions on debt collection practices are as follows:

  • False representations that the debt collection agency is affiliated with the government.
  • False representations as to the amount of the debt or type of debt.
  • The false claims that a debt collector is an attorney.
  • That the nonpayment of debt will result in jail.

If a debt collector uses any of the above tactics you should specifically tell them that they are violating the Debt Collection Practices Act and the will take legal action against them. If you're faced with a debt collection problem you should contact attorney for a free consultation to discuss your rights and your options under the debt collection practices act and the bankruptcy code. 

Krupp Law Offices P.C. represents clients facing bankruptcy throughout West Michigan, including the cities of Grand Rapids, Holland, and Grand Haven, and the counties of Kent, Ottawa, Allegan, Barry, Newaygo, Montcalm, and Ionia.

Our office can help.

GRAND RAPIDS BANKRUPTCY ATTORNEYS

KRUPP LAW OFFICES PC

161 Ottawa NW Suite 201

Grand Rapids MI 49503

616-459-6636 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

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