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Debt collection practices - Understand all the laws to protect yourself

Who are the debt collectors by law?

Attorneys who collect debt on a regular basis are considered as debt collectors under the 1986 amendment to the Fair Debt Collection Practices Act.

You can call a person a debtor when:

  • He owes money on a personal loan.
  • He uses a credit card.
  • He is paying on a home mortgage.

What does law say about the procedure of debt collection?

It is the responsibility of a debt collector to collect the debt from the debtor but through fair and rightful means. Any forceful means to collect debt is not allowed under the Fair Debt Collection Practices Act. You must be aware that under any situation or circumstances, the Fair Debt Collection Practices Act requires the debt collectors to treat you fairly by prohibiting certain methods of debt collection.

If I am not able to pay the loan, can they harass me?

The law doesn't permit the debt collectors to harass debtors under any situation. Debt collectors are restricted from using threats of violence or causing harm to any person in debt. They cannot use abuse debtors. They also cannot publish the debtor's name in public, neither can they harass debtors by calling up from time to time. The law gives you all types of protection if you are in serious debt problems.

Debt collectors are not allowed to engage in unfair practices when they try to collect a debt. They are not allowed to:

  • Collect any amount greater than your debt, unless allowed by law;
  • Deposit a post-dated check prematurely;
  • Make you accept collection calls or pay for telegrams;
  • Take or threaten to take away your property unless this can be done legally.
  • Contact you by postcard.
  • Make false statements on government policies.
  • Introduce themselves as government representatives.

If any debt collector tries to break the law, the outcome can be severe. You have the right to sue them in a state or federal court within 1 year from the date you think the law was violated. If you win, you will recover the money for all the damages you have suffered. You can also recover the court costs and attorney fees. A group of people also have the right to sue a debt collector and recover money for damages up to 500,000 dollars, or 1 % of the collector's net worth, whichever is less. The Fair Debt Collection Practices Act may protect you from all probable harassments by a debt collector. But the law cannot prevent you from paying for your debts.

how do i find out the debt collection laws for the...
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how do i find out the debt collection laws for the state of north carolina? have just been talked to like a dog by a company called RAB, INC.

Come to my site, and all information is there for you to click on.

Sub: #1 posted on Fri, 10/26/2007 - 21:01

Anthony Lemons Anthony Lemons

(Posts: 1828 | Credits: )

Isnt RAB Regional Adjustment Bureau??

Sub: #2 posted on Fri, 10/26/2007 - 21:03

volleyballmom volleyballmom

(Posts: 4143 | Credits: )

Welcome to the Community Allison :D Here is a link to NC collection laws and limits at http://w

Don't be intimidated by the colllectors! Have you sent them a debt validation letter? If not, send them one to make sure this is your debt, the amount is correct and that they are the ones legally able to collect on this debt.

Make copies, take notes of conversations, etc.

Send all correspondence certified, return receipt.

Feel free to ask questions,you aren't alone in this!!karen

Sub: #3 posted on Sat, 10/27/2007 - 07:29

Bossy4455 Bossy4455
(Posts: 5854 | Credits: )

North Carolina General Statutes
Chapter 75: Monopolies, Trusts and Consumer Protection.

Article 2.

Prohibited Acts by Debt Collectors.

???? 75????????50. Definitions.

The following words and terms as used in this Article shall be construed as follows:

(1) "Consumer" means any natural person who has incurred a debt or alleged debt for personal, family, household or agricultural purposes.

(2) "Debt" means any obligation owed or due or alleged to be owed or due from a consumer.

(3) "Debt collector" means any person engaging, directly or indirectly, in debt collection from a consumer except those persons subject to the provisions of Article 70, Chapter 58 of the General Statutes. (1977, c. 747, s. 4; 1989, c. 770, s. 15.)

???? 75????????51. Threats and coercion.

No debt collector shall collect or attempt to collect any debt alleged to be due and owing from a consumer by means of any unfair threat, coercion, or attempt to coerce. Such unfair acts include, but are not limited to, the following:

(1) Using or threatening to use violence or any illegal means to cause harm to the person, reputation or property of any person.

(2) Falsely accusing or threatening to accuse any person of fraud or any crime, or of any conduct that would tend to cause disgrace, contempt or ridicule.

(3) Making or threatening to make false accusations to another person, including any credit reporting agency, that a consumer has not paid, or has willfully refused to pay a just debt.

(4) Threatening to sell or assign, or to refer to another for collection, the debt of the consumer with an attending representation that the result of such sale, assignment or reference would be that the consumer would lose any defense to the debt or would be subjected to harsh, vindictive, or abusive collection attempts.

(5) Representing that nonpayment of an alleged debt may result in the arrest of any person.

(6) Representing that nonpayment of an alleged debt may result in the seizure, garnishment, attachment, or sale of any property or wages unless such action is in fact contemplated by the debt collector and permitted by law.

(7) Threatening to take any action not in fact taken in the usual course of business, unless it can be shown that such threatened action was actually intended to be taken in the particular case in which the threat was made.

(8) Threatening to take any action not permitted by law. (1977, c. 747, s. 4.)

???? 75????????52. Harassment.

No debt collector shall use any conduct, the natural consequence of which is to oppress, harass, or abuse any person in connection with the attempt to collect any debt. Such unfair acts include, but are not limited to, the following:

(1) Using profane or obscene language, or language that would ordinarily abuse the typical hearer or reader.

(2) Placing collect telephone calls or sending collect telegrams unless the caller fully identifies himself and the company he represents.

(3) Causing a telephone to ring or engaging any person in telephone conversation with such frequency as to be unreasonable or to constitute a harassment to the person under the circumstances or at times known to be times other than normal waking hours of the person.

(4) Placing telephone calls or attempting to communicate with any person, contrary to his instructions, at his place of employment, unless the debt collector does not have a telephone number where the consumer can be reached during the consumer's nonworking hours. (1977, c. 747, s. 4.)

???? 75????????53. Unreasonable publication.

No debt collector shall unreasonably publicize information regarding a consumer's debt. Such unreasonable publication includes, but is not limited to, the following:

(1) Any communication with any person other than the debtor or his attorney, except:

a. With the written permission of the debtor or his attorney given after default;

b. To persons employed by the debt collector, to a credit reporting agency, to a person or business employed to collect the debt on behalf of the creditor, or to a person who makes a legitimate request for the information;

c. To the spouse (or one who stands in place of the spouse) of the debtor, or to the parent or guardian of the debtor if the debtor is a minor and lives in the same household with such parent;

d. For the sole purpose of locating the debtor, if no indication of indebtedness is made;

e. Through legal process.

(2) Using any form of communication which ordinarily would be seen or heard by any person other than the consumer that displays or conveys any information about the alleged debt other than the name, address and phone number of the debt collector except as otherwise provided in this Article.

(3) Disclosing any information relating to a consumer's debt by publishing or posting any list of consumers, except for credit reporting purposes and the publication and distribution of otherwise permissible "stop lists" to the point????????of????????sale locations where credit is extended, or by advertising for sale any claim to enforce payment thereof or in any other manner other than through legal process. (1977, c. 747, s. 4; 1979, c. 910.)

???? 75????????54. Deceptive representation.

No debt collector shall collect or attempt to collect a debt or obtain information concerning a consumer by any fraudulent, deceptive or misleading representation. Such representations include, but are not limited to, the following:

(1) Communicating with the consumer other than in the name (or unique pseudonym) of the debt collector and the person or business on whose behalf the debt collector is acting or to whom the debt is owed.

(2) Failing to disclose in all communications attempting to collect a debt that the purpose of such communication is to collect a debt.

(3) Falsely representing that the debt collector has in his possession information or something of value for the consumer.

(4) Falsely representing the character, extent, or amount of a debt against a consumer or of its status in any legal proceeding; falsely representing that the collector is in any way connected with any agency of the federal, State or local government; or falsely representing the creditor's rights or intentions.

(5) Using or distributing or selling any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by a court, an official, or any other legally constituted or authorized authority, or which creates a false impression about its source.

(6) Falsely representing that an existing obligation of the consumer may be increased by the addition of attorney's fees, investigation fees, service fees, or any other fees or charges.

(7) Falsely representing the status or true nature of the services rendered by the debt collector or his business. (1977, c. 747, s. 4.)

???? 75????????55. Unconscionable means.

No debt collector shall collect or attempt to collect any debt by use of any unconscionable means. Such means include, but are not limited to, the following:

(1) Seeking or obtaining any written statement or acknowledgment in any form containing an affirmation of any debt by a consumer who has been declared bankrupt, an acknowledgment of any debt barred by the statute of limitations, or a waiver of any legal rights of the debtor without disclosing the nature and consequences of such affirmation or waiver and the fact that the consumer is not legally obligated to make such affirmation or waiver.

(2) Collecting or attempting to collect from the consumer all or any part of the debt collector's fee or charge for services rendered, collecting or attempting to collect any interest or other charge, fee or expense incidental to the principal debt unless legally entitled to such fee or charge.

(3) Communicating with a consumer (other than a statement of account used in the normal course of business) whenever the debt collector has been notified by the consumer's attorney that he represents said consumer.

(4) Bringing suit against the debtor in a county other than that in which the debt was incurred or in which the debtor resides if the distances and amounts involved would make it impractical for the debtor to defend the claim. (1977, c. 747, s. 4.)

???? 75????????56. Application.

The specific and general provisions of this Article shall exclusively constitute the unfair or deceptive acts or practices proscribed by G.S. 75????????1.1 in the area of commerce regulated by this Article. Notwithstanding the provisions of G.S. 75????????15.2 and G.S. 75????????16, in private actions or actions instituted by the Attorney General, civil penalties in excess of two thousand dollars ($2,000) shall not be imposed, nor shall damages be trebled for any violation under this Article. The clear proceeds of civil penalties imposed in actions instituted by the Attorney General shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C????????457.2. (1977, c. 747, s. 4; 1983, c. 417, s. 1; 1985 (Reg. Sess., 1986), c. 802; 1991, c. 68, s. 1; 1998????????215, s. 101.)

I got that from the North Carolina gov website at:


Sub: #4 posted on Sat, 10/27/2007 - 15:13

goldenbast goldenbast
Moderators Cum Industry Expert
(Posts: 2885 | Credits: )

i am trying to find out the time limit that a creditor can keep selling off my debt. i am a disabled senior citizen and am considered indigent. i live in north carolina now and ohio previously. i hav been with a debt attny.for over ten years but every time i try to stop i get a letter from just one creditor. i need to make this stop.

Sub: #5 posted on Tue, 05/06/2008 - 13:55


Unfortunately they can sell it as much as they want. However the more they sell it the harder it will be for them to validate it or prove their case in court if they try to sue you. That is assuming that the debt isn't so old by now it's passed the statutes of limitations.

Sub: #6 posted on Tue, 05/06/2008 - 17:05

(Posts: 2934 | Credits: )

I just had a debt collector call me trying to locate my daughter who is behind in her car payments. I explained to her the situation my daughter has been ill and is doing her best to get caught up in her bills, she proceeded to tell me all of her info than this lady looked up other family members phone numbers
and started calling the giving out information. I know this is illegal but I don't know who to report her to. She even called my husband's x-wife.

Sub: #7 posted on Fri, 05/09/2008 - 09:52


Report the CA to the FTC as well as the AG of your state. Send them a CD letter to advise them to stop calling you or her relatives.

Sub: #8 posted on Sat, 05/10/2008 - 01:55


what is a debt validation letter

Sub: #9 posted on Fri, 08/29/2008 - 10:38


A letter to a Collection Agency requesting proof that you owe a debt. See samples here:

Tailor them to your situation

Sub: #10 posted on Sat, 08/30/2008 - 03:49

Moderators Cum Industry Expert
(Posts: 4671 | Credits: )

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