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Browse our 1 legal question about Debt & Collection in United States and the lawyer answers, or ask your own questions for free.
In Opelika, United States, debt and collection laws are typically guided by federal statutes, but local and state laws may also influence the creditors' and debtors' rights. These laws are designed to regulate the practices of creditors and collectors. They stipulate how and when a debtor can be contacted, the information that must be provided to the debtor, and the methods that can be used for debt recovery. Creditors have a legal right to collect the money owed to them, but there are rules for fair debt collection they must follow.
Facing debt collection can be an intimidating experience. It's easy to feel overwhelmed, especially if you're unfamiliar with the legal aspects of debt and collections. You may need a lawyer when you are sued for a debt, or when a debt collector uses unfair or harassing methods. Also, if you're considering filing for bankruptcy, initiating a debt settlement or restructuring plan, or if you believe your rights have been violated under the Fair Debt Collection Practices Act (FDCPA), legal representation might be necessary.
In Opelika, as elsewhere in Alabama, debt collection is largely governed by the FDCPA. Alabama also has its own set of laws and regulations that complement the FDCPA. One notable law is the statute of limitations for debt collection. In Alabama, the statute of limitations for debts based on written contracts or agreements to pay money is six years from the date of default. For promissory notes and open accounts (credit cards), it is three years. Attempting to collect a 'time-barred' debt can be considered a violation of law.
If a collector threatens you, uses obscene language, publishes information about you, repeatedly uses the phone to annoy you, or calls without disclosing their identity, these actions are considered harassment.
Yes, you have the right to dispute a debt. If you believe you do not owe the money, you can send a letter to the collection agency disputing the debt and requesting verification.
Yes, but only after they sue you, win, and receive a court judgment. They cannot garnish your wages just because you owe a debt.
If a collector breaks the law during the process of debt collection, you can sue them in court. Your damages may include lost wages, and emotional distress.
A debt collector is not allowed to contact third parties about your debt, except to find out where you live, what your phone number is, and where you work.
For further information or assistance, check resources like the Consumer Financial Protection Bureau (CFPB) and local consumer protection agencies. Non-profit credit counseling agencies might also be beneficial, providing free or low-cost advice.
If you need legal assistance in Debt & Collection, begin by researching local attorneys who specialize in this field. Prioritize those who offer free consultations. Prepare for your consultation by collecting all relevant financial documents, including any communication with debt collectors. Ensure to have a list of questions ready for potential attorneys.
