What Collectors Can't Say
The appeals court emphasized that, under the FDCPA, It is not enough that
a collection demand letter state the amount of the debt that is due. It must
state it clearly enough that the recipient is likely to understand it:
Otherwise the collection agency could write the letter in Hittite and
have a secure defense. …one doesn’t have to be ingenious to
misread [National Action Financial’s] letter; one has to be exceptionally
ingenious to excavate its meaning.
If a debt collector is trying to collect only the amount due on the date
the letter is sent, then it complies with the FDCPA by stating the balance
due, stating that the creditor “has assigned your delinquent account
to our agency for collection,” and asking the recipient to remit the
balance listed—and stopping there.
If a debt collector is trying to collect the listed balance plus the interest
running on it or other charges, it should use language outlined by federal
courts:
As of the date of this letter, you owe $___ [the exact amount due].
Because of interest, late charges, and other charges that may vary from
day to day, the amount due on the day you pay may be greater. Hence, if
you pay the amount shown above, an adjustment may be necessary after we
receive your check, in which event we will inform you before depositing
the check for collection. For further information, write the undersigned
or call 1-800- [phone number].
Next: Things You
Shouldn't Say |
