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Debt Relief

Debt Relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations.  Any arrangement intended to reduce the burden of debt on a country, corporation, citizen, etc. usually including forgiveness of part or all of what is owed to creditors.

Debt Collection

If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "Debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "Debt Collector." A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis.

You should know that in either situation, the Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.

Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.

You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

May a debt collector continue to contact you if you believe you do not owe money?A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

Debt collectors may not harass, oppress, or abuse you or any third parties they contact.For example, debt collectors may not:

• Use threats of violence or harm
• Publish a list of consumers who refuse to pay their debts (except to a credit bureau)
• Use obscene or profane language; or repeatedly use the telephone to annoy someone.

False statements. Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:

• Falsely imply that they are attorneys or government representatives;
• Falsely imply that you have committed a crime;
• Falsely represent that they operate or work for a credit bureau;
• Misrepresent the amount of your debt;
• Indicate that papers being sent to you are Legal Forms when they are not; or
• Indicate that papers being sent to you are not legal forms when they are.

Debt Collectors also may not state that:

• You will be arrested if you do not pay your debt;
• They will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
• Actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.

Debt Collectors may not:

• Give false credit information about you to anyone, including a credit bureau;
• Send you anything that looks like an official document from a court or government agency when it is not; or

If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.

Report any problems you have with a debt collector to your state Attorney General' s office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General’s office can help you determine your rights.

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