Creditor Rights and Obligations Part 1- Limits on Creditors
In trying to collect a debt owed, creditors have rights and remedies in enforcing debt agreements against their debtors. Sometimes they can garnish wages, obtain liens on property, reposess items pledged as collateral or even file civil suit for monetary damages. However, there are actions creditors cannot take that are prohibited by federal and Florida law. In Florida, the Florida Consumer Collection Practices Act protects debtors from certain creditor actions. The federal law can be found in the Fair Debt Collections Act (FCPA) and Florida law practically imitates the FDCA. The federal laws can be found at Fair Debt Collections Act.
Florida laws can be found at Florida Consumer Collection Practices Act.
Q: Can a creditor simulate or pretend to work for law enforcement or any other governmental agency in collecting the debt?
A: No. Florida Statute 559.72(1) prohibits such an action.
Q: Can a creditor threaten or use force in collecting a debt?
A: No. Florida Statute 559.72(2) prohibits such an action.
Q: Can a creditor repossess property of mine without my knowledge?
A: Yes. If you agreed to pledge property as collateral, the creditor may repossess the property if the debtor is in default of the loan. However, the creditor must repossess the property in a way that does not breach the peace.
If you have further questions about creditor rights, contact Wood, Atter & Wolf, P.A. for legal counsel
