Similar to how you must know the traffic laws once you get a license, it is important to know all of the debt laws once you find yourself in debt. The importance of knowing these debt laws is this: you must know the laws in order to know if the creditors or collection agencies are breaking them. It surprises us every day how many people settle for being mistreated by their creditors simply because they do not know they are indeed being mistreated. Thus, it is our goal to educate debtors on their rights so they can ensure proper treatment in regard to their debt 100% of the time. Debt laws involve the following entities: collection laws, debt settlement laws, bankruptcy laws, and consumer protection laws. These are all aimed at protecting you, the consumer, from being mistreated by the people that you owe money to - the creditors, the debt settlement companies, the credit bureaus, the banks, and so on. Below we have provided a detailed summary of each of these laws so you can get a good idea of how you are protected and whether or not you are being mistreated in regard to your debt.
Federal Fair Debt Collection Practices Act
If you have any type of unpaid debt, then you are probably receiving some calls from your creditors and debt collectors. The Fair Debt Collection Practices Act (FDCPA), enacted by the Federal Trade Commission (FTC) prohibits these callers from any abusive, unfair, or deceptive practices. The debts that are covered by this act are personal, family and household debts, including money owed on an auto loan, credit card account, medical bill, and mortgage. The FDCPA protects you as a consumer against the following: false statements, harassment and unfair practices. In this, debt collectors may not use threats, violence or harm; publish names of people who refuse to pay thier bills; use obscene language; give false infromation about you to anyone; use a false company name; collect interest and fees on top of the amount you owe, contact you by postcard; and repeatedly annoy the debtors.
Additionally, they cannot falsely claim that they are attorneys; falsely claim that you have committed a crime; falsely represent that they operate or work for a credit reporting company; indicate that they have sent you legal forms when they haven't; and misrepresent the amount you owe. The debt collectors are also prohibited from saying certain things like "you will be arrested if you don't pay your debt," "we will seize, garnish attach or sell your property wages," and "we will take legal action against you." If you feel as though any debt collectors or creditors have mistreated, harrassed, or lied to you, then you may have a case according to the FDCPA. Get in touch with us about how to go about getting justice for any mistreatment you may have experienced.
The extremely in-depth Bankruptcy Code has been enacted for many years in order to outline the many aspects of bankruptcy. These include the chapters of bankruptcy, including chapters 7, 9, 11, 12, 13 and 15; the features of the US bankruptcy law; the cost of bankruptcy, the social and economic factors of bankruptcy, and much more. For those who are currently going through a bankruptcy, there are a couple laws out there to protect you: the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCP) and the Bankruptcy Reform Act (BRA). The BAPCP requires certain creditors to disclose on the front of billing statements a minimum monthly payment warning for consumers and a toll-free number for consumers seeking information on the time required to pay specific credit balanced. The BRA prohibits employment discrimination against anyone who has declared bankruptcy. Because the bankruptcy laws are so involved, it may be a good idea to consult a bankruptcy lawyer about whether or not you are being treated fairly.