All About New Jersey Debt Collection Laws

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How to Stop Harassment Based on New Jersey Debt Collection Laws

As if being in debt and unable to see your way through it isn't hard enough, you must also have to deal with debt collection agencies calling you. They may call you at bad times, and some are not nice. Luckily, are in place to stop them from harassing you.

You should also know that you are not alone. It is estimated that approximately 340 million people in the U.S. are also in debt to some degree, with an estimated value of $14.6 trillion combined.

If you are in financial trouble, DoNotPay can help you come up with a solution. We can take the pressure from debt collectors off you so that you can focus on getting your financial security back in order.

What Is a Debt and Debt Collector?

The FDCPA or "Fair Debt Collections Practices Act" defines debt as any obligation that you, as a consumer, owe to an entity in the form of money. These obligations are often the result of a service or purchase made by you or your family. Some of the most common debts for Americans are:

  • Personal Credit Cards
  • Vehicle Loans
  • Mortgages
  • Medical Bills

A debt collector is an agency or entity that is designed to contact you to collect your debt. These groups may be hired by the person that you owe money to rather than the entity that you owe personally.

Know Your Rights Under the New Jersey Debt Collection Laws

The key to handling debt collections is to know your rights. Part of that is knowing what the collector is not allowed to do. Whether you are in debt or not, no company or entity has the right to harass you. They are not allowed to:

Contact You During Inconvenient Times

Debt collection agencies cannot contact you during the hours of 9 pm and 8 am.

Debt Collectors Cannot Call You at Work

The first time a debt collector calls you, you should tell them that you cannot accept calls at work. If they call you again, then you can write letters or take legal action. The collections agency can contact your employer for contact information for you.

Collection Agencies Cannot Talk about Your Debt with Others

Although collections can call family, friends, and employers regarding information on how to contact you, they must not reveal that you owe a debt to them.

Debt Collections Cannot Call You If You Have a Lawyer

If you have a lawyer on your side helping you settle debts, the collection agency must contact them rather than you.

Debt Collectors Cannot Be Abusive in Any Way

By abusive, we mean that debt collectors cannot call you with:

  • Threats: They are not legally allowed to threaten you with violence, use foul language, or tell others that you are in debt. This includes threatening to:
  1. Have You Arrested
  2. Garnish Wages (Unless Permitted by Law to Do It)
  3. Other Legal Action (Especially If They Don't Plan to Do It)
  • Lies: They are not legally allowed to claim you committed a crime, that they are attorneys, or send legal papers if they aren't actually doing it. This also includes:
  1. Giving False Information About You to Others.
  2. Sending You Falsified Legal Documents
  3. Using a False Name
  • Use Unfair Practices: A debt collector cannot do anything that is unfair by you. This includes:
  1. Attempting to Collect More Money as Interest, Fees, and Other Charges.
  2. Depositing Postdated Checks Before the Date
  3. Contact You by Postcards
  4. Threaten to Take Property Unless Legally Able to Do It (Repossession)

If a debt collection agency does any of the above, you may be able to take legal action to make it stop based on the Fair Debt Collection Practices Act NJ.

You should note that collections agencies can, and sometimes do, take legal action against someone who owes money. Therefore, if you understand that you owe the debt, you should do your part and not try to avoid the collections agency. A much better practice is to try and work with them if at all possible to clear up the debt.

Is There a Statute of Limitations for Debt Collection in New Jersey?

According to the NJ debt collection statute of limitations, debt collection attempts can continue for between four and six years, depending on the type of debt that is owed. Once this time has elapsed, they are no longer legally able to pursue getting you to pay.

A basic idea of how long collectors have to collect your debt will be:

Medical Debts6 Years
State Tax Debts6 Years
Credit Card Debts6 Years
Auto Loan Debts4 Years

If you pay anything on your debt after the time has expired, or even as you grow near the deadline for them to pursue it, you start the clock over again. For example: if you owe a medical bill that you acquired five years ago, and submit one payment today, then they have the right to pursue a case against you for another six years according to New Jersey debt collection laws.

How to Deal with Debt Collections on Your Own?

If you are trying to find a way out of debt, there are some things you can do on your own and for yourself.

The First Step: Validate the Debt

Debts from a couple of years ago can be hard to remember. If you are not 100% sure that you owe money, you should ask the debt collector to validate the debt. This validation letter will verify the amount owed, list the original creditor, and express what the debt was for to refresh your memory or give you the chance to dispute it.

If you feel that you do not owe the debt, you should write a dispute letter expressing that you did not acquire the debt.

The Second Step: Negotiate and/or Pay

Once you have determined that the debt collector's claim is legitimate, you should:

  • Pay the Debt: If you cannot pay, you may want to ask about a way to negotiate a better price.
  • Ask the Debt Collector to Stop Contact: Legally, if you express that they should not contact you, they must stop. However, in some situations, this may also push them to pursue the case legally.
  • Request They Only Contact You During Specific Times or Ways: If you have a lawyer, you may express that they should only contact your lawyer. If you do not want them calling you during the day, ask that they call you in the evenings.

The Third Step: Report Them

Some collection agencies and representatives are not always good at taking hints or listening. If you request contact during certain times or feel that they are not following New Jersey's debt collection laws, you can report them to the FTC or the CFPB. When reporting, you should express that you feel they have violated the FDCPA.

You can handle debt collections on your own, but it isn't always the easiest thing to do. If you feel that the problems you are having are more than you can deal with, DoNotPay can step in and help.

DoNotPay Can Help You Stop Debt Collections in New Jersey

Debt collectors in NJ are held to certain . At DoNotPay, we understand the regulations and requirements that are set upon all collection agencies. Therefore, if you are struggling, we would like to help you get beyond the debt collection attempts.

Therefore, DoNotPay is a simple, fast, and effective way to deal with collection attempts.

Here's how it works:

  1. Search “debt collection” on DoNotPay.

  2. Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.

  3. Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to the CFPB.

And that’s it! Once you choose the course of action you want to take, DoNotPay will handle the rest. We’ll deliver your request directly to the debt collectors via first-class mail, or file your complaint automatically with the CFPB so that they’re no longer able to use unfair debt collection practices.

You can also check out our other credit products, including Credit Limit Increase and Clean Credit Report!

Why Use DoNotPay to Assert Your Rights in New Jersey Debt Collection Laws

You don’t have to suffer through unfair debt collection practices. In New Jersey they have Debt Collection Laws that DoNotPay can help you with because we are:

  • Fast- You don’t have to spend too much time searching for legal provisions that should apply to you.
  • Easy- All it takes are three steps to choose the best option for you and we willtake care of the rest.
  • Successful- Be one step ahead by getting the best help, you can rest assured that we are making the best case for you.

Other DoNotPay Services You May Enjoy

DoNotPay is an online robot lawyer group that can help with a variety of financial troubles in and beyond. We can:

Dealing with debt and other issues is never easy. DoNotPay understands and is here for you always. If you want to know more about any of our services, you simply need to visit us online.

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