The Federal Fair Debt Collection Practices Act (“FDCPA”) generally does not apply to the actions of original creditors. However, Texas residents are protected not only by the FDCPA, but also by the Texas Debt Collection Act. Almost all provisions in the Texas Debt Collection Act (“TDCA”) apply not only to original creditors, but anyone collecting a consumer debt. A “debt collector” under the TDCA is “a person who directly or indirectly engages in debt collection and includes a person who sells or offers to sell forms represented to be a collection system, device, or scheme intended to be used to collect consumer debts.” As you can see, the definition is quite broad. Even so, our firm has not seen many cases in which a collection agency or creditor has engaged in abusive and harassing tactics based on forms provided by a third party. Usually, abuse is in the form of numerous calls to a consumer’s friends, neighbors, and co-workers by the creditor or debt collector.
Texas and federal law prohibit debt collectors from harassing people in connection with attempts to collect consumer debts. The number of ways that debt collectors can harass people seems to be unlimited. One way some debt collectors harass consumers is by calling them very early in the morning, or very late at night. In fact, we have a case right now in which a debt collector called our client at about 1:30 a.m.
Here is what the Federal Fair Debt Collection Practices Act says about the time debt collectors can call:
Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o’clock antemeridian and before 9 o’clock postmeridian, local time at the consumer’s location.
Therefore, a debt collector cannot call you at any place, or at any time, which the debt collector knows or should know would be inconvenient for you. The 8:00 a.m. to 9:00 p.m. time period applies absent such knowledge.
If you are having issues with debt, check out the book below. It is written by Bob Brooks, a good friend of mine.
I have heard a number of collection abuse stories and profane voicemail messages while representing consumers over the years. Harrassment by collectors runs the gamut – from threats of arrest, to threats of bodily injury, to the use of profanity and racial epithets. I have heard recordings so profane that I would not post them in this public forum. No one should be forced to endure such treatment simply because a debt was not paid. Moreover, these tactics violate the Federal Fair Debt Collection Practices Act and Texas Debt Collection Act. If you are experiencing such abusive behavior by debt collectors, contact your state’s attorney general and/or a consumer protection attorney.
ACA International, The Association of Credit and Collection Professionals, has apparently posted a video of its general counsel talking about her experience at a recent Federal Trade Commission roundtable. Rozanne Anderson, ACA’s Executive Vice President and General Counsel, talks about several issues in the video. Your opinions?
Bob Brooks, a good friend of mine, is launching a new book. His book is written to help those who want to avoid and recover from debt. Here is a portion of what he says the book includes and/or assists consumers in doing:
Why budgets don’t work and teach you a much more effective system to manage your monthly expenses and income
How to manage the debt collection process and how to stop it all together
Everything you need to know to improve your credit score (not repair it – it is not broken)
The reality behind debt settlement and debt management programs and how you can create your own systems saving you thousands of dollars.
A behind-the-scenes look at how credit companies trap consumers and how to avoid those traps
The five different debt categories and the debt eliminating game plan for each category
How to manage your debt situation between now and July 2010. Why July 2010? This is the date that the new credit card regulations go into effect. Until then, the credit industry has plenty of time to change anything that they want about your credit account – and they have already started doing it!
Most importantly, I am going to show you the spiritual significance of getting out of debt and why getting out of debt will change your life in ways you will not imagine.
I have not read the book but expect that it will be full of good information. Bob’s heart is in the right place, and he has talked to many radio listeners and clients over the years regarding debt issues.
A California jury, on April 3, 2009, awarded $500,000.00 against Credigy Services Corporation in a fair debt collection case. Our firm was not involved with the case. The jury awarded $50,000.00 in compensatory damages to each of two plaintiffs and $400,000.00 in punitive damages. You can review a copy of the jury’s verdict form (with jurors’ names and initials redacted) here -
Luke Wallace and David Humphreys are two of the lawyers credited with obtaining the verdict for the consumers. Mr. Wallace and Mr. Humphreys are well-respected Oklahoma attorneys who fight for their clients’ rights, and they have significant trial experience. Here is a link to their website -
Debt collectors like to put pressure on consumers to pay, and they can do so by embarassing or harassing consumers to the point that consumers pay just to stop the calls. A favorite tactic of many debt collectors is to call consumers’ neighbors.
A debt collector is generally permitted by law to contact people other than those who own a debt in order to locate the person who owes the debt. There are limitations on this right which are not addressed in this post. However, a debt collector collecting a consumer debt cannot generally contact a neighbor in order to have the neighbor deliver a message to a consumer, or to provide information about the debt to the neighbor. Even so, it is a common tactic used by many collection agencies. If a debt collector knows your home and work addresses and phone numbers and yet still calls your neighbors in connection with attempts to collect a debt from you, it is likely that the debt collector is violating federal law.
The primary law in place to protect consumers from improper and abusive debt collection practices is the Federal Fair Debt Collection Practices Act (“FDCPA”). The FDCPA protects consumers in all 50 states. While there are numerous parts of the law that specify conduct in which debt collectors may not engage, it is a law which is simple to interpret. Very generally, if a debt collector lies to a consumer or treats a consumer disrespectfully in connection with attempts to collect a consumer debt, it is a violation of the FDCPA. The FDCPA only applies to efforts to collect debts incurred for personal, family, or household purposes.
Various states also have laws in place to protect consumers from harassing debt collectors. Texas, for example, has what is commonly referred to as the Texas Debt Collection Act (‘TDCA”). It is in Chapter 392 of the Texas Finance Code. While the TDCA’s provisions differ from those of the FDCPA, both statutes protect consumers from the same type of generally abusive and harassing conduct.
