Bankruptcy, Collection Agencies, and Fair Debt Collection Laws in Florida
As a bankruptcy attorney, I often counsel people in significant financial distress. Most have debt collectors calling every day. Once a person files bankruptcy, federal law requires that all attempts to collect debts cease immediately. But for some, bankruptcy may be unwise or simply too expensive. This article intends to inform people in such a situation about methods debt collectors are prohibited from using to collect debts and what a person can do to stop them.
Under the federal Fair Debt Collection Practices Act ("The Act") debtors are protected from overzealous or unscrupulous debt collectors. Note that The Act does not generally apply to the person or entity that is owed the debt. It only applies to debt collection agencies. A debt collection agency may have violated The Act if its agent has done any of the following:
(1) Pretended to be a government employee, representative of the government, or a law enforcement officer;
(2) Disclosed without justification, to a person other than the debtor, information that negatively affects the debtor's reputation;
(3) Contacted a debtor at work without permission by the debtor to do so;
(4) Threatened a debtor with a lawsuit that the collection agency knew could not be carried out;
(5) Used or threatened force or violence;
(6) spoke in such a manner as to give the debtor the impression that the debt collector was associated with an attorney;
(7) Refused to adequately identify himself or herself or his or her employer when debtor requested such information; or
(8) Communicated with the debtor between the hours 9 p.m. and 8 a.m. without the debtor's permission.
These are just a few of the more common methods unethical collection agencies may use. Violations of The Act will support claims (lawsuits) for actual and statutory damages. In theory the amount of actual damages is unlimted, but most cases see awards in the $5,000 amount. In addition to compensation to the debtor for his or her actual and statutory damages, the debtor can also recoup any attorneys fees incurred in the lawsuit.
Cease and Desist Letter
In addition to filing suit against unscrupulous collection agencies by way of The Act, debtors can also compel agencies to stop most attempts to collect by filing what is called a "cease and desist" or "no contact" letter. If the debtor does not already have the collection agency's address, he or she should request it from the debt collector when they call. Collection agencies are required by The Act to provide this information. The cease and desist letter should be sent by certified mail with return receipt. The letter that follows is a sample of a cease and desist letter.
RE: Your Account Number Here
To Whom It May Concern:
You are hereby notified, pursuant to the Fair Debt Collection Practices Act, 15 U.S.C. Sec. 1692 and Florida Statutes Sec. 559.72 that I require you to cease contacting me at home, work or any other place regarding the above referenced account. You do not have my permission to contact any other person in your collection efforts to determine where I live or work.
This letter will serve to advise you that any further contacts will be construed as harassment and in violation of the law. Also be advised that any violation of federal or state law will be reported to the appropriate authorities, including the Federal Trade Commission and the Attorney General for the State of Florida.
(INCLUDE IF APPLICABLE) I dispute the debt that you are attempting to collect from me and request at this time verification of the debt you claim is outstanding.
Sincerely,
Your Signature Here
Even if Florida debtors find themselves unable or prohibited from filing for bankruptcy, they can still realize some relief from collection agencies that violate state and federal fair debt collection laws. Debtors with low incomes should contact their local community legal services organization for free legal consultations.
Sources: I. Videos Gone Viral, II. The Car Junky, III. The Tech Fanatic
Under the federal Fair Debt Collection Practices Act ("The Act") debtors are protected from overzealous or unscrupulous debt collectors. Note that The Act does not generally apply to the person or entity that is owed the debt. It only applies to debt collection agencies. A debt collection agency may have violated The Act if its agent has done any of the following:
(1) Pretended to be a government employee, representative of the government, or a law enforcement officer;
(2) Disclosed without justification, to a person other than the debtor, information that negatively affects the debtor's reputation;
(3) Contacted a debtor at work without permission by the debtor to do so;
(4) Threatened a debtor with a lawsuit that the collection agency knew could not be carried out;
(5) Used or threatened force or violence;
(6) spoke in such a manner as to give the debtor the impression that the debt collector was associated with an attorney;
(7) Refused to adequately identify himself or herself or his or her employer when debtor requested such information; or
(8) Communicated with the debtor between the hours 9 p.m. and 8 a.m. without the debtor's permission.
These are just a few of the more common methods unethical collection agencies may use. Violations of The Act will support claims (lawsuits) for actual and statutory damages. In theory the amount of actual damages is unlimted, but most cases see awards in the $5,000 amount. In addition to compensation to the debtor for his or her actual and statutory damages, the debtor can also recoup any attorneys fees incurred in the lawsuit.
Cease and Desist Letter
In addition to filing suit against unscrupulous collection agencies by way of The Act, debtors can also compel agencies to stop most attempts to collect by filing what is called a "cease and desist" or "no contact" letter. If the debtor does not already have the collection agency's address, he or she should request it from the debt collector when they call. Collection agencies are required by The Act to provide this information. The cease and desist letter should be sent by certified mail with return receipt. The letter that follows is a sample of a cease and desist letter.
RE: Your Account Number Here
To Whom It May Concern:
You are hereby notified, pursuant to the Fair Debt Collection Practices Act, 15 U.S.C. Sec. 1692 and Florida Statutes Sec. 559.72 that I require you to cease contacting me at home, work or any other place regarding the above referenced account. You do not have my permission to contact any other person in your collection efforts to determine where I live or work.
This letter will serve to advise you that any further contacts will be construed as harassment and in violation of the law. Also be advised that any violation of federal or state law will be reported to the appropriate authorities, including the Federal Trade Commission and the Attorney General for the State of Florida.
(INCLUDE IF APPLICABLE) I dispute the debt that you are attempting to collect from me and request at this time verification of the debt you claim is outstanding.
Sincerely,
Your Signature Here
Even if Florida debtors find themselves unable or prohibited from filing for bankruptcy, they can still realize some relief from collection agencies that violate state and federal fair debt collection laws. Debtors with low incomes should contact their local community legal services organization for free legal consultations.
Sources: I. Videos Gone Viral, II. The Car Junky, III. The Tech Fanatic
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