If you’ve ever had debt that’s gone to collections you know that debt collectors are unscrupulous. I’ve know a couple of people who have dealt with collectors, and let’s just say it wasn’t a “fun” process for anyone involved. As you’d imagine, having someone call your home because you’re behind on your bills is a pretty humiliating experience.
Even under the “best’ circumstances, just getting calls from collectors is pretty stressful, but imagine if you get a collector “gone wild.” From cursing and harassment to outright threats, some collectors are downright nasty. But did you know, that aside from being first class jerks, those debt collectors are also breaking the law? To keep yourself from being a target for abuse, keep in mind that the following debt collection practices are illegal:
Top 10 Illegal Debt Collection Practices
- Calling before 8am or after 9pm. If collectors are calling you at 4am or 12pm they are breaking the law. There’s no reason for them to call you at those times, other than to disturb you and be a nuisance.
- Repeated calling over and over. If the collector calls you 15 times in one hour, or fills your voicemail box everyday he/she is harassing you and breaking the law.
- Use of obscene language. This one is pretty self-explanatory. Cursing, threats and derogatory comments are against the law.
- Lying about the authenticity of legal documents. E.g. Stating they sent you legal documents when the documents are not in fact legal documents and/or stating that the documents they sent you are not legal documents, when they are.
- Lying/False representation. “I’m calling from the IRS” or “This is Bill from XYZ Federal Agency”
- Stating they’ll seize your property or garnish your wages. Unless of course they have the legal right to do so.
- Correspondence with “debt” written on them (even if it’s the company name). Sending written correspondence and/or postcards that state “Debt Collector” or “Debt Collection”, in an attempt to embarrass or shame you is against the law.
- Speaking with anyone except for you, about your debt. I.e. calling your home or workplace and stating “I’m looking for Joey because he’s $40k in debt, when you see him again could you please have him call XYZ debt collectors?”
- Threatening you committed a crime and/or will go to jail. The US does not have a “debtor’s prison.”
- Threats of physical violence and/or threats to your safety. I.e. “I know where you live and I’m going to send someone by to break your legs or hurt your kids if you don’t pay today.”
What to do if you are being harassed?
The Federal Trade Commission (FTC) established The Fair Debt Collection Practices Act (FDCPA) to protect consumers from illegal debt collection practices. Laws vary from state to state (some states have more protection in place) so you should check with your state Attorney General’s office (naag.org) and/or the Federal Trade Commission’s website (ftc.gov) for more information. If you can prove that the collection agency or collector broke the law, you may have legal recourse and will want to consult with an attorney. I’ve heard of people settling their entire debt in court after they’ve proven that the collector violated the FDCPA.
Have you ever dealt with a collector? Did he/she break the law?
Image: L. Marie