North Dakotans who are facing financial problems should know their rights to fend off unscrupulous debt collection practices. Debt collection companies in North Dakota must be licensed by the state Department of Financial Institutions (DFI). Therefore, residents who believe collectors have violated their rights can file a complaint with the DFI. North Dakotans also can sue collection companies in state or federal court if they believe collectors have violated the law.
Disputed Debts
According to the North Dakota Attorney General's office, debt collection companies must cease contact with a consumer who notifies them in writing that he doesn't owe the debt they're attempting to collect from him. The debtor does, however, need to dispute a debt in question within 30 days of receiving a collection notice. Consumer notices that deny a debt obligation may not stop collection actions; a company can continue its efforts to recoup a debt if it sends consumers information that proves the disputed debt is owed.
Collector Conduct
Debt collectors can't use obscene language in an attempt to scare a consumer into paying a debt. Collectors also are prohibited from threatening to have a debtor arrested for not paying a bill. The Fair Debt Collection Practices Act prevents collection companies from taking or threatening to confiscate a person's property without the legal authority to do so. The act also prevents the misrepresentation of paperwork. For example, a collector is prohibited from telling North Dakotans that legal documents related to a debt are being sent to them if the documents aren't actually legal papers.
Collector Contacts
A collection company must contact a consumer's attorney instead of the consumer if a consumer has hired an attorney to handle a debt collection case. A collector may contact other people a debtor knows to track down a debtors' phone number, address or place of employment. Yet the Attorney General's office indicates that collectors are typically prohibited from contacting other people more than one time. Furthermore, collectors generally aren't allowed to discuss a consumer's debt with anyone other than the consumer or his attorney.
Considerations
The Attorney General's office also recommends that North Dakotans consider credit and debt management counseling if they're deep in debt. A reputable counselor can help a debtor head off collection actions if the debtor seeks help early enough. Some counseling agencies provide free and low-cost services that can result in lower interest rates and manageable payment plans with their clients' creditors.
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