Fair debt collection laws provide specific rules that companies must abide by when attempting to collect money or property from individuals. Violations of the fair debt collection laws include use of obscene language, repeated telephone calls, filing suit on a time-barred debt, false threats of arrest or wage garnishment, and the failure to provide proper notices to consumers.
A creditor can repossess a consumer’s car only if the creditor has the contractual right to do so (e.g., a default under the finance contract), and only if the repossession is completed without a breach of the peace. Even if a repossession is completely lawful, the creditor must provide the consumer proper notice of his or her right to reinstate the contract and redeem the vehicle.
Debts are being sold over and over. Consumers sometimes are confronted with a lawsuit based on a very old debt, or a lawsuit brought by a company they never heard of. Settling with the “debt buyer” may not be an option, especially when the collector fails to provide documentation of its right to collect on the debt. Fortunately, there are options for consumers.
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