Some Ohioans struggling to make ends meet may find themselves receiving phone calls or letters from third-party debt collectors. Once your missed payment is turned over to a third-party collector, you have rights under the federal Fair Debt Collection Practices Act.
It can be difficult to tell a phony debt collector from a legitimate debt collector, but learning your rights can help spot a scam.
In general, the Fair Debt Collection Practices Act governs how collectors can contact you and the methods they can use. It’s important to note that the act applies only to third-party collectors, meaning if a company is collecting on its own behalf, it’s not subject to the restrictions. Here are some of your consumer rights when dealing with a third-party debt collector:
- A debt collector must send you a notice (electronic or postal mail) within five days after contacting you by phone, including how much you owe, who you owe it to, any related account number, and how long you have to dispute the debt. This is known as a validation notice. A phony debt collector probably will not take this step.
- You have 30 days from the date of first contact to send a letter disputing the debt and specifically requesting verification of the debt. The debt collector must not contact you again unless the collector sends proof that you owe the money.
- Whether or not you owe the debt, you can tell debt collectors in writing not to contact you again. That does not eliminate the debt but stops further communication from the collector.
Third-party debt collectors may
not:
- Harass you or use obscene language.
- Contact you before 8 a.m. or after 9 p.m.
- Contact you without identifying themselves.
- Use false names or statements, such as falsely implying that they are attorneys, government representatives or credit bureau representatives.
- Threaten you or your family with harm.
- Disclose your debt to others. If debt collectors know you have an attorney, they can contact the attorney and no one else, with very limited exceptions such as a spouse. Otherwise, they can contact others, such as neighbors or relatives, but only to find out how to reach you. Generally, they cannot contact third parties for any other reason unless you have given them prior consent to do so.
- Contact you at work if you or your employer disapproves.
- Falsely represent that you have committed a crime.
- Misrepresent the amount you owe.
Debt does not expire or disappear until it’s paid. If a debt is valid, you still owe it until you pay it off, no matter how much time passes. However, the law limits the amount of time during which a debt collector may take legal action to collect a debt. Statutes of limitation vary depending on the type of debt.
Even if your debt is several years old and the statute of limitations has expired, it may still be reported to the credit-reporting agencies and can negatively affect your credit score. Accurate negative information can stay on your credit report for up to seven years; bankruptcies stay on your credit report for 10 years.
Always read all correspondence you get from a court or debt collector’s attorney. These papers contain important information about court dates and other obligations. If you get served with court papers, do not ignore them.
For more information about getting sued by a debt collector, visit Ohio Legal Help at
www.ohiolegalhelp.org. To find a civil legal aid provider, call (866) LAW-OHIO (866-529-6446).
Consumers who suspect a scam or an unfair business practice should contact the Ohio Attorney General’s Office at
www.OhioProtects.org or 800-282-0515.