Being hounded by debt collectors is a common thing: so common in fact that there are businesses that make millions off of promising clients that they can stop the collection calls. However, did you know there are actually laws and regulations that dictate when a collection agency may call you, and when they are required to stop? Back in 1977, congress passed a law that is known as the Fair Debt Collection Practices Act that regulates the debt collection industry and protects you against unfair, misleading, and other debt collection practices that go from simply unethical to downright criminal. It also provides provisions that TECHNICALLY require them to stop calling you except to inform you that they will no longer be calling you or that they are pursuing legal action against you (with this second part also falling under certain regulations).
What They Can’t Do:
The FDCP prohibits specific activities that debt collectors may use to try and extract a debt from a debtor. Such practices include threats, use of obscenities, falsely claiming to be attorneys or government representatives, discuss the debt with anybody other than yourself or your attorney (if you have retained one), publish a list of those who refuse to pay the debt, and much more. The bottom line of it is that a debt collector is legally barred from lying in order to collect a debt, and legal threats are ESPECIALLY frowned upon (unless they actually intend to carry them out and are legally permitted to do so).
They also aren’t permitted to garnish your wages without a court order: furthermore, threats to garnish your wages without a court order are also illegal, so keep that in mind. Now, keep in mind that a legal threat backed up by a court order is absolutely permitted, but without that court order their threat constitutes a violation of the act.
How You Can Stop Collection Calls:
In addition to the act containing provisions that forbid debt collectors from calling at inconvenient hours (between 9 in the evening and 8 in the morning), there are also ways to prevent them from calling within that time frame. For example: if you verbally or through writing inform them that you are not permitted to receive calls at work (and tell them when you are working), then they will be required to stop calling you at work. Attempting to contact your employer for any other purpose other than to obtain your contact information constitutes a violation of the act as well.
Furthermore, if you provide them with a written letter indicating that they are to stop calling you all together, then they are required to stop calling and may only contact you to inform you they will no longer be contacting you or that they are pursuing legal action. In this case it is highly advised to send the letter by certified mail and pay for a “return receipt” so you can verify the letter was received – at that point they may no longer contact you. You can also stop them if you dispute the validity of the debt, at which point they would be required to supply documentation validating the debt and cannot contact you again until such documentation has been provided.
How You Can Handle Law Breakers:
Now, going through this list, you might discover a debt collector has done one or more of these things to you. Sadly, in spite of the law, some debt collectors choose to ignore the law and employ illegal practices in their attempts to collect. Thankfully, there is recourse: you may file a law suit against the collector for any damages received from their attempts to collect. Even if you didn’t suffer damages, the judge may reward you up to $1000 dollars and require the collector reimburse you for attorney’s fees and court costs. You can also file a complaint with the Federal Trade Commission, your state Attorney General’s office, or the Consumer Financial Protection Bureau.
It is important to note that even if a collector is found in violation of the law that this does not invalidate the debt, you will still be required to pay IF it is a valid debt. However, if you do suffer damages and pursue legal action the court ruling could be enough to cover the debt in full, but do not count on it as without proof of actual damages it would fall under the discretion of the judge in question.
Conclusion:
The FDCP is a valuable tool protecting the rights of consumers from unfair practices utilized by debt collectors. While the Federal Trade Commission still reports tens of thousands of complaints filed in a given year, the fact remains the protection exists, and there is recourse to handle those collectors who go too far. By knowing your rights under the law, and handling things in a rational manner, you can make the law work for you, and make the process of paying back valid debts or erasing invalid ones a far calmer and less stress inducing ordeal.
Sources:
Federal Trade Commision: https://www.consumer.ftc.gov/articles/0149-debt-collection
