If you are struggling to pay an overwhelming mountain of debt, phone calls from collection agencies could very well be a common occurrence in your life.
While collection agencies have considerable leeway in how and when they can contact you, you do still have rights as a debtor.
Those living in New York are protected against unfair collections practices by two different laws: the New York State Debt Collection Procedures Law and the federal Fair Debt Collection Practices Act.
There are several areas covered by these two debt collection practices laws. Here is information on some of the most commonly cited concerns among debtors:
Statute of Limitations on Debt
Under this provision, collectors or creditors are unable to contact you about paying an outstanding debt after the statute of limitations on debt has expired. Once the statute of limitations has expired, you have no legal obligation to pay the debt. The New York statute of limitations on debt is six years.
Collection Agency Information
By law, collectors must be honest and forthcoming with you about who they are and what their purpose is. Within five days of their first contact with you, collectors must send you via mail a written notice that states your total debt, the name of the creditor and information on how you can dispute your debt. It is illegal for collectors to provide false names or to make statements that could lead you to believe you have committed a crime.
Disputing a Debt
If you do not agree with the amount of debt the collector states that you owe, you have the right to dispute the debt. You will need to write the collections agency within 30 days to outline why you do not owe the debt in question. Be prepared to provide copies of any paperwork that supports your claim. Once you take this step, the collections agency cannot contact you again without providing some form of proof that you do owe the debt in question.
Your Right to Privacy
It is legal for collectors to contact people who you know, such as your family or your employer. They can contact these individuals, however, only to determine your address or phone number and to verify your place of employment. It is illegal for the collector to reveal any of your financial information in these contacts. All correspondence from a collection agency also must be discreet and cannot reveal information about the collections procedures.
Paying a Collection Agency
Often, if you cooperate with a collector, the collection agency will work with you to create a payment plan if you are unable to repay your debt right away. If you request a payment plan from a collections agency, make sure to get it in writing. Additionally, collection agencies are allowed to collect only your debt - they are not allowed to charge you any additional fees.
While many collection agencies abide by the law, there are a handful of collectors who will take their collection practices too far. If you believe a collection agency has violated your legal rights as a debtor, you should contact the New York state attorney general's office. You also can file a complaint with the Federal Trade Commission.