Know Your Rights – Better Understand Consumer Debt Laws
Fair Debt Collection Practices Act – Californians are protected under the Fair Debt Collection Practices Act, which regulates how collection agencies and law firms are able to collect debts owed. All provisions of this Act must be followed. For instance, the max interest rate that a collection agency is able to charge is 10%. There is a California wage protection, which covers 75% of wages.
There is also a statute of limitations for the length of time that debts can be pursued after the debtor has become delinquent. Californians become delinquent on a payment from the date after their past due point, not from the last payment made. This is how it’s been set up:
- Two years max for oral agreements
- Four years max for written contract
- Four years max for promissory notes
- Four years max for open accounts (i.e. credit cards)
Consumer Finance Protection Bureau “CFPB” – Have you been sued or threatened with a lawsuit by a debt collection like Frederick J. Hanna & Associates? If so, you may have the Consumer Finance Protection Bureau (“CFPB”) on your side!
Rosenthal Federal Fair Debt Collections Act “RFDCPA” – As a consumer, you’re entitled to file a lawsuit against any debt collector who violates your rights under the State of California’s Rosenthal Federal Fair Debt Collections Practices Act
The Federal Fair Debt Collections Practices Act “FDCPA” – As a consumer, you’re entitled to file a lawsuit against any debt collector who violates your rights under the Federal Fair Debt Collections Practices Act. You have a right to sue a debt collector for violations of the FDCPA within one year from the date you believe the law was violated.
30-Day Validation Notice Requirements – Within five days after you’re first contacted, a debt collector must send you a written 30 day validation notice telling you several statements about the debt dispute.