New Hampshire Collections Practices Act

The New Hampshire Act covers debt collection activities against consumers for their personal debt, such as retail financing, credit card purchases, auto loans, and mortgages. There is no minimum or maximum to the amount owed that cancels the protections available under the State Act. The State Act recognizes anyone who attempts to collect on debts owed directly to them, collection agencies, factors (companies purchasing your debt), and repossession companies all the same, as debt collectors subject to state law. The Federal law excludes most creditors attempting to collect debts owed to them in the regular course of their own businesses. It however does offer protection from an attorney acting as a bill collector where the state law does not give that protection.

Both New Hampshire and Federal law prohibit debt collectors from engaging in certain practices, and give debtors some protection during the debt collection process. In general, both statutes require debt collectors to clearly identify themselves and the nature of the call, set a consumer right to limit the number of contacts, and provide consumer recourse including damages, if debt collectors violate the law.

A wide range of collection activities are prohibited by State law. The use of obscene or abusive language to include ethnic slurs, and threats of violence or harm to you, your reputation, or your credit rating are banned. Debt collectors can not contact you unusual times like midnight or repeatedly call you. Under the State Act, a debt collector may not call a debtor at his or her place of employment if the debtor informs the debt collector that he or she does not wish to be contacted there. Even if you do not make such a specific request, the debt collector can make only one telephone call per month to your place of employment. In making that call the debt collector may not inform the employer of the reason for the call unless asked. The debt collector is also banned from calling anyone but the debtor, his or her spouse, or the parents or guardians of a debtor who is a minor, about the debt unless the debtor expressly agrees to permit the "third party" contacts. The State Act further limits contacts with spouses, parents, and guardians to one instance, for the sole purpose of locating the debtor when the debt collector has been unable to locate the debtor for at least 30 days. To avoid further contact it may be wise to retain a lawyer or better yet a credit counselor as a debt collector is prohibited from continuing to write or call a debtor once informed that the consumer is represented by an attorney or credit counselor. You can also write a letter to the debt collector asking that contact stop. This letter should be sent to the debt collector by certified mail with a return receipt requested. Keep a copy of the letter for your files. Once the debt collector receives the letter, the collector can make no contact with you, with two exceptions, a single notice to advise you that the collection efforts have stopped or to inform you of actions which may be taken as a result of your nonpayment, and legal documents being served to you as the debtor.

Other prohibited tactics include publishing the names of debtors or "advertising" the sale of debts in order to embarrass or humiliate debtors through public exposure. Debt collectors may not misrepresent who they are or misrepresent documents by using false names; pretending to be an attorney; state, local or federal official, law enforcement or court officer; using documents designed to look like "official" court or government documents; pretending to be or affiliated with a credit reporting agency; falsely implying that documents are not legal process forms or do not require any action or response by the consumer when they do; or suggesting that a debt has been turned over to an "innocent third party" when in fact the debt has been transferred to a collection agency.

Further debt collectors can not lie about the size or status of the claimed debt, or falsely characterize the status of any legal proceedings involving the debtor; imply that a transfer or sale of the debt will cause the consumer-debtor to lose the ability to defend himself against collection; make false credit statements about you to another person or creditor, including failing to tell that the debt is disputed. Debt collectors may not mislead you about what action they might take such as making unfounded threats of criminal charges, falsely implying that the debtor will be arrested or imprisoned, or threatening to garnish wages unless the debt collector has the right and intends to take action. A court order is required for any of these actions.

You can dispute the claim or the amount of the debt. To do that you must be specific in your letter to the debt collector. Tell the debt collector exactly what you believe that you do not owe, or that you believe that you do not owe the amount stated. Give the reason you are disputing the debt. Valid reasons include, the debt is already paid, too much time has elapsed since the debt and collection is now barred by law, you have filed bankruptcy and the debt was discharged or the debt is owed to a hospital and you informed the hospital that you could not pay. The hospital should have considered payment under a charitable care policy. You must send or hand deliver this notice of dispute within 30 days of receiving the follow-up notice from the debt collector.

After receiving the notice of dispute from the debtor, the debt collector must suspend collection activities regarding the claimed debt until the collector verifies the debt and shows the debtor that the debt is in fact still active. If more than one debt is being collected by the same debt collector, tell the debt collector on how to apply any payments. The debt collector can not apply any part of those payment to your disputed debt.

How long a debt collector has to file a lawsuit against you depends upon the type of claim and/or basis of the debt. Credit card companies have three years to sue on a debt, but if the debt was already reduced in a court the debt collector has up to 20 years. Most debt claims based on a written contract must be filed within 3 years of default. There are exceptions to this rule of course such as retail sales installment contracts where the debt collector has 4 years to file. If you receive a call from a debt collector or a creditor about an old debt, you should not make a new promise to pay. Any promise to pay or actually making a partial payment effectively starts the clock ticking all over again.

You have the right under the New Hampshire Act to sue debt collectors who break the above rules. The State Act provides actual and statutory damages as well as costs and attorney's fees. Remedies are through superior or small claims court action for violation of the State Act, but you must file within 3 years of the violation.

Contact the NH Consumer Protection & Antitrust Bureau if you have a problem with a debt collection agency in New Hampshire at 33 Capitol St., Concord, NH 03301-6397 or by phone at 271-3641.