Frequently Asked Questions

I get phone calls late at night. Can I take any action to stop this?

The collection agency is not supposed to call you up after 8 PM and before 9 AM [FDCPA Section 805(a) (1)]. You can ask them not to call you up late at night or early in the morning. If it does not work out, go for a legal action.

What if the Credit Bureau refuses to correct my information in their records even if I provide them the necessary proof?

You should go to the court. You can actually sue the credit bureau for defamation and willful injury. This comes under the FCRA Section 623. If you win, a fine of an amount equal to the damage caused will be charged from them.

Can I file a claim against the creditors if they pull out my credit file without any reasonable purpose?

 

Yes. You can sue them under the FCRA Section 604(A)(3) for causing injury to your credit report and credit score. They have to pay a fine of $1000 if you prove them wrong.

 

My creditor presented my credit history in a wrong way and with incorrect data. What should I do now?

Let him know that he has violated the US Court of Appeals, Ninth Circuit, No.0015946, Nelson vs. Chase Manhattan. They will be paying an amount equal to the damage caused (as deemed by the court) as fine.

I sent a letter to the credit bureau asking for some corrections in my credit report which they have prepared. But there is no response from them.

The credit bureaus should respond to any written document sent by you within 30 thirty days. It can extend up to 45 days if they have to exchange information with the creditor during the first few days. But if they fail to do so, you can charge them for violating the FCRA Section 611Part (A) (5) (B) (ii) for $1000.

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What is debt validation?

Debt validation means checking and proving that you have taken a debt. The collection agencies hired by the creditors must be able to do debt validation. For this they should have the necessary proofs of your debt. Whenever you are contacted by a collection agency to make the payment, you can always ask them to validate your debt. It is your right.

I am constantly getting calls from an agency to repay the loan. When I asked them for debt validation, they were unable to do so. Still I get their calls.

You have every right to ask for debt validation. If the collection agency is still calling you up, even on not being able to validate your debt, they are in a problem. You can file a claim against them for violating the FDCPA Section 809(b). According to this act they cannot even report to the credit bureaus if they cannot validate your debt.

What is a ‘cease and desist’ letter?

Cease and desist means ‘to stop’. A cease and desist letter is sent to anyone asking him to stop a particular activity mentioned in the letter. Otherwise a legal action could be taken. You can send a cease and desist letter to your collection agency. This means that if they do not stop calling you up or bothering you in any way, you can take a legal action against them.

I have sent a cease and desist letter to my collection agency. Can I file a court case if they start calling me up again?

 

Yes, definitely. They can be charged under the FDCPA Section 805(c).

 

I have made my payment by a post-dated cheque. But they have got it cashed it before the date mentioned in the cheque.

 

According the FDCPA Section 808, this is a serious offence and your collection agency can be sued for this. They will be charged a fine of $1000.

 

What are the other situations when I can file a case against the collection agency?

 

Apart from the situations mentioned above, you can go against the collection agencies when the collection agency.

 

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• Calls you at your office knowing that your employer does not encourage such calls [FDCPA Section 805(a) (3)].

 

• Calls up your friends, relatives or neighbours [FDCPA Section 805(b)].

 

• Threatens you, uses violence, uses obscene language; Threatens, annoys, or abuses you without revealing its identity (FDCPA Section 806).

 

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