You need to know about Debtor's Rights

Even if you owe, you still have rights!

Know Your Rights

The Fair Debt Collection Practices Act (FDCPA)

The Fair Debt Collections and Practices Act governs how the federal government deals with collectors and collections.

This Act provides certain protections against methods used by collections agencies to try to put unfair leverage on citizens.

The FDCPA is only applied to debt collectors. This includes agencies working on the request of a creditor, lawyers that collect debts, and companies that buy debt and attempt to collect upon it (debt buyers).

The FDCPA does not apply to the original creditor in which the debt originated.

Debt types covered by the FDCPA include credit cards, mortgages, medical debts, and other personal, family or household related debts.

This means that the FDCPA does not apply to business-related debts.

Federal Trade Commission (FTC)

The Federal Trade Commission protects consumer's rights, and thus debtor's rights.

Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau is another government organization set out to protect consumer rights, and additional avenue to register complaints.

Know what is allowed

These are the things debt collectors must do in order to attempt to collect:

Debt Collectors must send a written notification.
Then they must cease collection efforts up until they mail the requested debt verification.

Debt Collectors may even attempt to contact you while you are at work, however they will not be allowed to do so once they have been informed otherwise.

Know what is not allowed

Debt Collectors are not allowed to do any of the following:

There are specific hours that debt collectors are not allowed to call to attempt to collect.
Customer defined hours or places of pre-defined no contact are not allowed either.
Debt Collectors are not allowed to threaten a person with litigation when they have zero intentions or doing that.

If you find that a debt collector is violating you rights by attempting to do any of the things listed above, contact our offices immediately!

Oklahoma State Rights

State Rights:

One might assume that federal law covers and protects and covers all of your rights. However, it is State law that determines the statute of limitations, or the deadline for any legal action taken on debt. If the statute of limitations has expired, then a debt becomes “time-barred" and the ability to collect the debt becomes limited.
If the debt becomes "time-barred", this does not mean that you do not owe the debt, nor that the collector has to stop trying to collect the debt.

**(Under the FDCPA guidelines , however, you are able to send a letter to the collector demanding that they stop contacting you.)**

The unpaid debt will still be reported as unpaid by credit agencies, and will be on there for up to 7 years, and a bankruptcy will be retained for up to 10 years.

Usury Law

Hard caps on interest rates

Usury Law, the States, and debt types

Most states have hard caps on the interest rates on lenders. And thus if they go over that rate, they will often be fined and part of the owed amounts can actually be erased and sometimes even the debt can become unenforceable.
However, you need to know that usury laws do not apply to certain types of debts, such as business loans, banks, savings and loans, or credit unions, and thus even credit cards are not protected.
Although, a debt buyer can continue to charge an interest rate that goes above the state’s usury cap limit, but only after it purchases the debt from a bank or other exemption lender. If you have questions if this applies to you or not, please contact our offices and we would be happy to assist you on this matter.

There are reasons to dispute a debt

You should dispute debt for the following reasons:

Identity theft was resulted from the debt.
Mistaken Identity is involved.
Medical debt that was slated for insurance payment, Medicare, Medicaid, or other types of systems.
The debt is an inaccurate amount.
The amount owed has ballooned due to high fees and penalty interest into a much higher amount.
Debt has been already or paid.
"Time-barred" or debts that are beyond the statute of limitations.