The Fair Debt Collection Practices Act (FDCPA) was enacted in 1977 to protect consumers from abusive and deceptive practices by debt collectors. FDCPA is designed to provide consumers with rights and protection against harassment, threats, and unfair practices by debt collectors. This federal law outlines certain rules that debt collectors must follow when attempting to collect a debt.
While the FDCPA is not directly related to taxes, it can significantly impact taxpayers who owe money to the government. This is because the Internal Revenue Service (IRS) may hire third-party debt collectors to collect unpaid tax debts. In such cases, the FDCPA applies to the debt collectors hired by the IRS, and taxpayers have the right to be protected against unfair debt collection practices.
In this article, we will discuss ways to protect yourself under the FDCPA when dealing with debt collectors who are collecting unpaid tax debts.
Know Your Rights under FDCPA
The first step to protecting yourself under FDCPA is to understand your rights. The FDCPA outlines specific rules that debt collectors must follow when attempting to collect a debt. These rules include the following:
Debt collectors can only contact you at convenient times or places, such as before 8:00 a.m. or after 9:00 p.m.
Debt collectors cannot contact you at work if they know that your employer prohibits such calls.
Debt collectors cannot harass or abuse you, use obscene language, or threaten you with violence or harm.
Debt collectors cannot lie or misrepresent themselves, such as pretending to be attorneys, government officials, or credit bureaus.
Debt collectors must provide you with certain information about the debt, such as the name of the creditor and the amount owed, within five days of their initial contact with you.
Debt collectors must stop contacting you if you request them to do so in writing.
Knowing your rights under FDCPA can help you identify when a debt collector is violating the law and take appropriate action to protect yourself.
Keep Records of Communication
It is essential to keep a record of all communication with debt collectors. This includes written correspondence, emails, and phone calls. Record the date, time, and details of each communication, including the debt collector's name and contact information. Keeping detailed records will help you if you need to file a complaint or take legal action against a debt collector who violates FDCPA.
Check Your Credit Report
Debt collectors may report your unpaid tax debt to credit bureaus, which can negatively affect your credit score. It is essential to check your credit report regularly to ensure that the information reported by debt collectors is accurate. You can obtain a free copy of your credit report from each of the three major credit bureaus once a year at www.annualcreditreport.com.
You can dispute the information with the credit bureau if you find errors in your credit report related to unpaid tax debts. The credit bureau is required to investigate the dispute and correct any errors within 30 days.
Respond to Notices from Debt Collectors
If you receive a notice from a debt collector, pay attention to it. Ignoring the notice will not make the debt go away and may result in more aggressive debt-collection efforts. Instead, respond promptly to the notice and request validation of the debt.
Under FDCPA, debt collectors must provide you with certain information about the debt within five days of their initial contact with you. This includes the name of the creditor and the amount owed. If you do not believe you owe the debt or if the information provided by the debt collector is inaccurate, you can dispute the debt.
You must dispute the debt in writing within 30 days of receiving the notice from the debt collector. The debt collector must only stop all collection activities once they have provided you with verification of the debt. If they cannot verify the debt, they cannot continue collection efforts.
Seek Legal Assistance
If a debt collector is violating FDCPA, you can seek legal assistance to protect your rights. You may be entitled to damages, including actual, statutory, and attorney's fees. A lawyer who specializes in debt collection practices can help you understand your rights and take legal action against debt collectors who violate FDCPA.
Pay Your Tax Debts
One of the best ways to protect yourself from debt collectors is to pay your tax debts. If you owe money to the government, you should make every effort to pay your debts in full or negotiate a payment plan with the IRS. This will help you avoid the negative consequences of unpaid tax debts, such as interest and penalties, wage garnishments, and asset seizures.
If you cannot afford to pay your tax debts in full, you can explore options such as an installment agreement, an offer in compromise, or a currently not collectible status. These options help you reduce your tax debt or make payments more manageable.
Conclusion
The Fair Debt Collection Practices Act provides important protections for consumers against abusive and deceptive practices by debt collectors. These protections apply to taxpayers who owe money to the government and may be subject to debt collection efforts by third-party debt collectors hired by the IRS.
To protect yourself under FDCPA, you should know your rights, keep records of communication, check your credit report, respond to notices from debt collectors, seek legal assistance if necessary, and pay your tax debts. By taking these steps, you can protect yourself from unfair debt collection practices and resolve your tax debts promptly and effectively.
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