By the Collections Agitator
Let’s pick up where we left off last time with a quick recap: The Fair Debt Collection Practices Act (FDCPA) was passed to codify and clarify consumers’ rights and limit unethical activities of debt collectors attempting to collect consumer debts. Consumers are human beings, and consumer debts are obligations incurred for the intended benefit of self, family, or household. The FDCPA does not address business obligations.
So I wondered, what did the debt collector say during the phone calls? Kim replied they said something about calling for a “Kim L.W.” to make arrangements to collect on a past-due debt. I then asked, did they say anything else? She said nope. Note that she just so happens to share a similar name, but with a different spelling as the “alleged obligated” consumer.
For starters, you should know that debt collectors’ representatives must identify themselves and their employer and expressly state why they are contacting you. You must be told the debt amount, interests, fees, and other “charges” they seek to collect. They must tell you the history of that debt. Equally, if not more critical, inform you if the Statute of Limitations (SOL) on the debt has expired. Therefore, you are no longer obligated to pay the debt. Yes, I said you are not obligated to pay a debt if the SOL has run its course! I will talk about the Statute of Limitations later.
Knowing that debt collectors can take legal action against consumers even if the error is theirs’, I advised my friend to answer the next call and gather as much information as possible. Again, she thought that just ignoring the calls and telling them they had the wrong person was enough to be free and clear of the matter. I had to tell her debt collectors have been told they had both the wrong number and the wrong person. If she really wanted to end the phone calls and possible legal action against her, she would have to act to protect her interests. She was shocked that she had to actually engage the errant actors to defend herself, her property and preserve her rights. Sadly, inertia can cost you more in the long run than taking the call, gathering information, and then taking action even if the debt is not yours.
Tribe, I’m letting you know, along with my friend Kim, if you fail to dispute the alleged debt obligation within 30-days of the debt collector’s initial contact, the debt is assumed yours and the debt collector can begin court proceedings to obtain a judgment against you. No, that’s correct, even if you think it is not right. The Courts have often ruled in debt collectors’ favor because you had the option and opportunity to dispute the alleged debt and failed to do so.
Above I mentioned specific things debt collectors must tell consumers—well, the right to dispute the debt is one of those required notices. Disputing the debt can be accomplished verbally or in writing but must occur within that 30-day first contact window. So when the debt collector called next, she spoke with them. During the call, the required disclosures were made, including the right to dispute the debt—which she did. She then sent follow-up correspondence reaffirming that she is not the person they seek and disputed the debt preventing any assertion that she did not object and requested all communications cease until the debt is verified. She used a prepared form found on the Consumer Financial Protection Bureau (CFPB) website. The CFPB is the muscle behind the FDCPA.
To be continued.