Legal Question in Credit and Debt Law in Arizona

Re: Collection agencies

Under many circumstances, it is a violation for a debt collector to contact an employer. If the collector contacts anyone besides the debtor, they must follow certain rules that do not allow them to mention that they are calling for a debt.

Moreover, if a collector is using illegal means to collect a debt, then a consumer is entitled to recover statutory damages up to $1000.00 per violation, which act somewhat like a fine or penalty. Also, the law provides that you may recover attorney fees from the collection agency if they have been found in violation of the law.

A qualified attorney will be able to review your case and help you from unscrupulous debt collectors. Many other attorneys are not familiar with the law and are therefore reluctant to take on these cases. However, in some circumstances, attorneys may be willing to take your case without any up front cost to you because the debt collector will be obligated to pay the fees and costs.

Clients also like another benefit to hiring an attorney, which relieves some of the stress and headache of the situation. If you are represented by an attorney, then the debt collector may only communicate with the attorney.

Relevant portions of the Fair Debt Collection Practices Act state:

(b) COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.

And

(6) after the debt collector knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney's name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to the communication from the debt collector.