DEBT COLLECTION

The Attorney General's Office plays an active role in insuring that West Virginians are not victimized by unlawful debt collection practices. The West Virginia Consumer Credit and Protection Act ("the ") specifies the prohibited conduct. Generally, the prohibits debt collectors from engaging in threats or coercion, oppression and abuse, from making fraudulent, deceptive or misleading representations, and from engaging in any unfair or unconscionable means to compel consumers to pay alleged debts. The also prohibits debt collectors from contacting third parties, such as employers, friends and family members, or from engaging in other acts that might disclose or publicize the indebtedness.

Consumers frequently complain that debt collectors contact them repeatedly by telephone at home and at work, even after they ask that the contacts stop. Consumers also complain that debt collectors speak to them in a hostile, insulting or degrading manner, or make various improper threats. It is unlawful for debt collectors to threaten that failure to pay a debt may result in arrest or other criminal sanctions. It is also unlawful for debt collectors to threaten that failure to pay the debt will result in garnishment of wages unless they also explain that such actions may only take place after the debt collector obtains a judgment in court.

West Virginia law also requires that collection agencies, companies that collect debts on behalf of others, must have a business license and post a $5,000 surety bond with the State Tax Department before engaging in any debt collection activities in West Virginia. The Attorney General has played an active role in making sure that all collection agencies doing business in West Virginia comply with these licensing requirements.

West Virginia consumers are also protected by the federal Fair Debt Collection Practices Act ("FDCPA"). The FDCPA and the both prohibit many of the same debt collection practices. However, the FDCPA provides additional protections to consumers. For example, the FDCPA requires debt collectors to notify consumers in the first written communication that they may request written verification of the debt within 30 days. The FDCPA also provides that consumers may force collection agencies to stop contacting them by sending a letter asking that all contacts stop. Any violation of the FDCPA is deemed to be an unfair or deceptive act or practice. For this reason, violations of the FDCPA are also considered unfair or deceptive acts or practices in violation of the . This allows the Attorney General to enforce both the FDCPA and the .

The Attorney General frequently receives debt collection complaints from consumers over the telephone. When this occurs, the attorney-on-call for the day attempts to determine what type of conduct the consumer is being subjected to and whether any laws are being violated. The attorney-on-call will make the consumer aware of legal rights under state and federal law and, when appropriate, will forward a complaint form to the consumer. When the complaint involves repeated contacts by a collection agency, the attorney-on-call informs the consumer that they must write a letter requesting that the contacts stop.

Question 1 - How can I make the collection agency leave me alone?

Answer - The FDCPA provides that a collection agency must end all contacts if the consumer sends a letter asking them to stop. The collection agency may, however, send a final letter acknowledging that it will no longer be contacting the consumer. The final letter may also state what future steps the creditor plans to take to collect the debt.

Question 2 - Do I have the right to pay off the debt by making monthly installments?

Answer - Debt collectors do not have to accept a consumer's offer to pay off the debt in monthly installments. However, they often accept such arrangements because they recognize that the consumers may not be able to pay the debt in full. Debt collectors may reject the payment arrangement and file a civil suit to obtain a court judgment against the consumer for the amount owed. However, most debt collectors will not seek a court judgment unless the consumer owns valuable property.

Question 3 - What if the debt collector insists that I make monthly installment payments in amounts that are larger than I can afford?

Answer - As noted above, the debt collector is often willing to enter into installment payment agreements. However, it is up to the consumers to determine whether they can afford to pay a debt in monthly installments and, if so, the amount that they can afford. Consumers should not allow a debt collector to force them into agreeing to make payments that they cannot afford.