Fair Debt Collection Practices Act

• The federal Fair Debt Collection Practices Act regulates companies that are in the business of collecting debt. Certain rules are established about when and who collection agencies may contact. For example, unless you allow otherwise, a debt collector may call you only between the hours of 8 a.m. and 9 p.m. Also, other people may be contacted only to ask for your phone number, address and place of employment. No personal information about your debt may be divulged to another person.
  
  

Employer Contact

• The FDCPA allows you to be contacted at work, unless you have informed the agency that your employer does not allow personal calls. Also, your employer may be contacted directly to inquire about your job status, location of work and health insurance benefits (if the debt is medically related and your insurance covers the bill). However, your employer cannot be given any details about the debt. If a request is made about your salary or other personal information, your employer can refuse to verify those types of inquiries. Also, if the collection agent asks for the same information more than once, your employer can refuse the request, and the contact may be interpreted as a violation of federal law.
  
  

Garnishments

• Your wages cannot be garnished by your employer without a court order. To receive one, your creditor must sue you and a win a judgment against you. When your employer is requested to garnish your wages, the court order must be presented prior to attaching the garnishment amount to your salary. In this case, your employer must verify your employment to the debt collector and follow the requirements of the judgment.
  
  

Complaint

• If a debt collector violates any provision of the FDCPA, some remedies are available to you. You may file a complaint, including details of the violation, with the state Attorney General's office and the Federal Trade Commission. Also, you may sue the collection agency. However, there is a one-year statue of limitations from the date that the violation took place. If you are the prevailing party in a lawsuit, you may be able to collect actual damages for money that you lost due to illegal practices (such as a job loss from excessive employer contact), attorney fees and court costs. Even if you can't prove any damages, you still may be awarded $1,000 under the provisions of the FDCPA.