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We are pleased to respond to your correspondence concerning the debt collection practices of a creditor.

The Fair Debt Collection Practices Act (FDCPA) prohibits the use of abusive practices by third-party debt collectors. The FDCPA provides you with certain rights in dealing with collection agencies and attorneys who collect debts on a regular basis. However, the FDCPA does not cover creditors -- such as, banks, department stores, doctors, finance companies, hospitals, and oil companies -- when they are collecting their own debts. While the FDCPA does not govern the collection practices of creditors, some state debt collection laws do. To learn whether your state's law does, contact the office of your state's Attorney General or a county consumer protection office.

If your goal is to have the creditor reduce your monthly payments, we suggest that you explain your situation in writing to the company. Keep a copy of your letter and use certified mail/return receipt, so you can prove that you sent the letter and that it was received. In your letter you might propose a new payment plan that better reflects your present financial condition. It should be noted that both debt collectors and creditors may demand full payment at any time after you have defaulted on your original agreement. However, if you work out a payment arrangement and faithfully keep to the payment schedule, many debt collectors and creditors will honor that arrangement.

If you receive papers indicating that you have been sued or are being summoned to court, obtain legal advice quickly. Failure to appear at a scheduled court hearing may result in the entry of a default judgment against you. Sources of legal advice include your state Attorney General's office, a local legal aid or consumer protection office, or a private attorney.

Thank you for bringing this matter to our attention.



Sincerely yours,


Consumer Response Center