What protection do I have under federal law from debt collectors?

Under the Federal Debt Collection Practices Act of 1977 (amended seven times since then through 2006), debt collectors are prohibited from:

•          Attempting to contact you in any way (by phone, in writing or in person) once you document in writing that you want contact from that debt collector to stop
•          Telephoning you before 8 a.m. or after 9 p.m.
•          Lying about the negative repercussions of failing to pay what you owe
•          Discussing your debt with another person
•          Lying to, threatening or tricking you
•          Using inappropriate language in any contacts with you
•          Visiting your residence more than once a month (follow-up visits for legitimate reasons may be considered allowed)
•          Entering your residence, unless invited  to do so by an adult member of your household
•          Staying at your residence once you ask them to depart
•          Attempting to contact you if you have documented to them in writing your belief that the amount alleged to be owed is incorrect; should the debt collector provide documentation that the alleged debt is correct, then the debt collector legally may start contacting you again to recover the amount owed.
•          Contacting you at your workplace (whether by telephone, in person or in writing) if your employer forbids such contact

Consider meeting with a qualified Virginia bankruptcy attorney to file for Chapter 7 or Chapter 13 personal bankruptcy.  Should you file for personal bankruptcy, then debt collectors must cease all attempts to contact you.

Does Virginia State law afford me any additional protection against debt collectors?

While many states do have specific legislation to protect citizens against unfair practices by debt collectors, Virginia does not. Virginia Code Section 18.2 – 213, however, does state:

“Any person who, for the purpose of collecting money, shall knowingly deliver, mail, send or otherwise use or cause to be used any paper or writing simulating or intended to simulate any warrant, process, writ, notice of execution lien or notice of motion for judgment shall be guilty of a Class 4 misdemeanor.”

Does declaring personal bankruptcy compel debt collectors to stop contacting me?

Yes. Should you file for personal bankruptcy, then notify each creditor and debt collector in writing. Under federal law, both creditors and debt collectors must stop all attempts to collect debts covered under the bankruptcy filing.  Should you take out any personal loans after filing for bankruptcy and not pay them back as agreed, debt collectors have every right to contact you in attempt to collect on that new personal loan.

What exactly is a debt collector under federal law?

Debt collectors can be:

• A person, company or agency retained by a creditor to collect a debt
• Creditors collecting on their own debts but using a different name

Creditors who attempt to collect their own debts under their own name are not considered debt collectors.

Posted: March 2nd, 2009 under Bankruptcy Articles.
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