It is against federal law for debt collectors to utilize abusive or unfair methods or false claims in order to collect a debt.
Debt collectors are prohibited by the Fair Debt Collection Practices Act (FDCPA) from employing abusive, unfair, or deceptive methods to obtain debts from you. These methods include:
Oh, the dreaded debt collector. The mere mention of their name can send shivers down your spine and make your heart race. But hold on, friend because you have rights!
Debt collectors are bound by law to treat you fairly and ethically. They can’t use abusive, unfair, or deceptive practices to collect debts. This guide will break down what debt collectors can’t do, empowering you to stand your ground and protect yourself.
Unfair Practices: A Collector’s No-No List
- Charging extra fees: Debt collectors can’t add on fees or charges that aren’t allowed by your original contract or by law.
- Communicating through social media: If you tell a debt collector to stop contacting you via social media, they have to respect your wishes.
- Using misleading envelopes: Envelopes used for debt collection can’t contain anything that indicates it’s a debt collector, except for the collector’s address or business name.
Deceptive Statements: Lies Debt Collectors Can’t Tell
- Falsely claiming to be an attorney or government representative: Debt collectors can’t pretend to be someone they’re not.
- Threatening arrest or imprisonment: Debt collectors can’t scare you with false threats of legal action.
- Exaggerating the debt amount: Debt collectors can’t lie about how much you owe.
- Claiming they’ll seize your wages or property: Debt collectors can’t make empty threats about taking your belongings.
- Pretending documents are legal: Debt collectors can’t mislead you about the nature of documents they send.
Harassment: When Debt Collection Crosses the Line
- Repeated calls: Debt collectors can’t bombard you with calls. They can only call you seven times within a seven-day period or within seven days after talking with you about a particular debt.
- Obscene language: Debt collectors can’t use foul language or be verbally abusive.
- Threats of violence: Debt collectors can’t threaten to harm you or your loved ones.
Your Rights: Taking Control of the Situation
- Stop communication: You can tell a debt collector to stop contacting you. Send a written request and keep a copy for your records.
- Dispute the debt: If you don’t think you owe the debt, send a dispute letter within 30 days of receiving validation information.
- Report unfair practices: If a debt collector violates your rights, report them to the Consumer Financial Protection Bureau and the Federal Trade Commission.
Additional Resources: Empowering Yourself
- Consumer Financial Protection Bureau: https://www.consumerfinance.gov/ask-cfpb/what-is-an-unfair-deceptive-or-abusive-practice-by-a-debt-collector-en-1401/
- Federal Trade Commission: https://consumer.ftc.gov/articles/debt-collection-faqs
- Your state attorney general’s office: They can help you understand your state’s debt collection laws.
Remember, you have rights! Don’t let debt collectors bully you. By knowing your rights and taking action, you can protect yourself and ensure fair treatment.
Examples of harassment by a debt collector
A debt collector is also not allowed to harass, oppress, or abuse you or anyone else they contact. This includes using vulgar or obscene language, making repeated calls with the intention of harassing someone, and making threats of violence or harm.
Examples of unfair practices
Here are some instances of debt collection tactics that the FDCPA would view as illegal. Debt collectors are not allowed to:
- Unless permitted by the terms of the contract or the law, attempt to collect charges in addition to the debt.
- use a social media platform to communicate with you or make an attempt to do so in relation to the collection of a debt if the communication or attempt is visible to the public or the person’s social media contacts.
- Unless an exception applies, correspond with you via email that the debt collector is aware was given to you by your employer.
- Other than the debt collector’s address or company name that doesn’t indicate it’s in the debt collection business, use any language or symbol on an envelope for correspondence with you that indicates it is a debt collector.
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FAQ
What are 2 things that debt collectors are not allowed to do?
What debt collectors don t want you to know?
What should you not say to debt collectors?
What is the 11 word phrase to stop debt collectors?
What can a debt collector do?
The Fair Debt Collections Practices Act regulates what debt collectors are allowed to do. Under this law, debt collectors can: Contact you via phone, letter, email or text message unless you ask them to stop in writing. Leave you a voicemail message about your debt.
Are debt collectors obnoxious?
Debt collectors often have a reputation for being obnoxious, rude, and even scary while trying to get borrowers to pay up. The federal Fair Debt Collection Practices Act (FDCPA) was enacted to curb annoying and abusive behaviors. Even so, some debt collectors flout the law.
What happens if a debt collector doesn’t work?
If they aren’t successful, they may turn the debt over to a collection agency. At this point, your original account shows up on your credit report as a charge-off with a zero balance. A new collection account showing the balance you owe will appear on your credit report, and debt collectors will begin contacting you.
Can a debt collector harass you?
Though debt collectors can contact you, they can’t harass you. They cannot call you all the time. Constant phone calls, calls that are meant to annoy or harass you are barred under the FDCPA. Also, they are only allowed to contact you between 8 a.m. and 9 p.m. local time.