The mini-Miranda law refers to Section 807, Part 11 of the Fair Debt Collection Practices Act as amended in September of 1996, requiring debt collectors to provide a certain statement in their initial contact with a debtor. It requires the collectors to identify themselves as attempting to collect a debt and inform the debtor that they use any information they obtain for that purpose.Continue Reading
The law requires debt collectors to make this initial statement on both phone and written communications. After they make the full statement once, they are required to let the individual know they are a debt collector.
While the act does not officially call this statement the mini-Miranda, the warning is similar in nature to the Miranda rights required for use by law enforcement informing a suspect of his right to remain silent, the right to an attorney and the right to a court-appointed attorney if he is unable to afford one otherwise.
In adopting this law, Congress recognized the stress unfair collection practices cause consumers. In the background for adopting the law, it says that such unfair practices lead to unnecessary bankruptcy, marital instability, the loss of jobs and invasion of the consumer's privacy. The intent of the act is to prevent unfair practices while allowing collectors to follow standardized, fair rules, including the use of the mini-Miranda.Learn more about Law
To collect debt, the Fair Debt Collection Practices Act stipulates that people may contact others via phone and mail or sue in civil court for debts, according to the Federal Trade Commission. Debts incurred to run a business are not covered by the Fair Debt Collection Practices Act.Full Answer >
The Fair Debt Collection Practices Act forbids debt collectors to harass, abuse or deceive consumers when attempting to collect debts, reports the Federal Trade Commission. The law restricts when and where collectors can contact consumers and limits their interactions with third parties not directly concerned with the debt. Within five days of initial contact, the collectors must inform consumers of creditors' names, how much they owe and how to dispute the debts.Full Answer >
On the federal level, the Fair Debt Collection Practices Act protects consumers from certain debt collection practices and sets rules that debt collectors must follow, notes the Federal Trade Commission. Several states have their own debt collection laws, such as the Illinois Collection Agency Act, which requires debt collectors to have licenses, and sets rules about how they communicate with debtors, states Nolo.Full Answer >
According to Credit.com, debt collectors can refuse partial payment unless the collector and the debtor previously negotiated acceptance of such payments. It points out that the debt collector may be allowed to charge extra in the event of state allowance or the collector including fees and expenses in the contract.Full Answer >