Outsmarting Debt Collectors, Part 2

Knowing your rights could have debt collectors owing you money instead of the reverse. A Brooklyn woman received notice from a debt collector a year and a half ago demanding repayment of her $1,040 in outstanding credit card debt. Today, the debt collector owes her half that amount.

Want to know why? The debt collector’s notice was missing two words required by FDCPA law. She used that omission as the basis for a federal lawsuit against the collector and won. She was awarded $500 in damages, plus lawyer’s fees and court costs.

Having a debt collector leaning on you is scary. The law is very specific about the obligations of parties making even legitimate demands for repayment. If they fail to fulfill them, your collector could wind up owing you more money than it claims you owe it.

Whenever you owe money, it’s important to know your rights. That includes the right not to be harassed by repeated or late-night phone calls. But even if your debt collector is a level-headed pro, he may nevertheless be guilty of a seemingly minor oversight that violates civil law and lets you haul them into court.

The Fair Debt Collection Practices Act is a 30-year-old federal statute that governs interactions between collectors and debtors. Under the FDCPA, the first step a collector must take is to send a debtor a “validation notice” that states the amount of debt at issue and to whom it is owed. The law further stipulates that collectors use notices to tell debtors the following:

–The collector will provide a 30-day window during which the debtor has the right to appeal the claim in writing.
–In the event of an appeal, the collector must reply with documentation supporting the validity of the claim.
–In the event the claim involves a debt originally owed to another party (the rights to which the collector has acquired), the collector must inform the debtor of the identity of the original creditor.

If you feel that a debt collector has violated any of the above laws and you think you have a case, contact Fair Debt for Consumers for a Free* case review.