What it does for consumers: It protects them from aggressive debt collectors. The law holds them to strict conduct rules.
Debt collectors may not reach you at odd hours, such as before 8 a.m. or after 9 p.m., unless you grant permission for them to do so.
Debt collectors may not contact you at work if they know your employer dislikes such calls.
Debt collectors must go
through your attorney, if you have one,
in regard to your debt. They can only
contact a third party once about where
and how to find you.
Consumers must receive written notice five days after first contacted by a debt collector. It must detail the amount owed and provide instructions on how to dispute the amount if the consumer believes it to be wrong.
A collector may not contact you if within 30 days after you receive the written notice, you fire off a letter to the collection agency stating you do not owe the amount. However, a collector can resume collection procedures if they send proof of the debt, such as a copy of a bill for the amount owed.
Collectors may not threaten harm, harass the debtor or third parties, make repeated calls to annoy the debtor or use profanity during the calls.
Collectors may not misrepresent themselves as attorneys, government agents, credit bureau workers or any other entity other than debt collectors, nor may they lie about the amount owed or what will happen they don't receive payment.
Sources: The Federal Reserve, Federal Deposit
Insurance Corp., Federal Financial Institutions Examinations Council,
Federal Trade Commission, U.S. Department of Housing and Urban Development,
Bankrate.com
Note: This chart is only intended to supply a brief overview of each consumer protection law and should be used as a reference guide for the laws listed. Not all consumer protection laws were included in this chart. Please refer to the Federal Reserve's Web site for information on other consumer laws.
