Know Your Laws and Defend Yourself from Debt Collectors |
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If you've failed to pay your loan, debt collectors can hound you and this can be more stressful than managing overdue debts.
A debt collector can even use intimidation tactics, which are illegal. While some can take a legal approach in persisting you to pay up if debt collectors break the law, you can take action.
The Fair Debt Collection Practices Act protects consumers from unfair methods or harassment by debt collectors. Since the law applies only to collection agencies (not the original creditor), learn how the law can protect you. Debt collectors must identify themselves, their agency, the original creditor's name and amount owed. You can dispute this amount within 30 days and rightfully demand them to stop contacting you, through a written cease-contact letter. After which they will only be allowed to call and inform you that they will not try to collect the debt or that they will sue. What is Illegal? It is illegal for debt collectors to: ? Call you before 8am or after 9pm. ? Contact you at a friend's or neighbor's house. ? Call you at your workplace or call your employer. ? Threaten you with seizure of your property or imprisonment, personal harm, use of profane language. ? Contact a third party to find you. ? Discuss your debt with friends, family, employers, your lawyer, spouse and co-debtor. ? Send mail that resembles legal papers. ? Demand a payment by wire, overnight mail or credit card. What You Can Do If a Debt Collector Engages In Illegal Activity The FDCPA gives you the right to tell debt collectors to stop contacting (even if they are not breaking the law) you through a letter stating the agency to cease all communications with you. All agency employees will be prohibited from contacting you, except to inform that collection efforts have ended or if they plan to sue you. Document Illegal Behavior: If a debt collector breaks the law, document every detail of the violation immediately, especially mention time and witnesses. Keep another person present during all future communications with the collector. Some states allow you to can record phone conversations without the debt collector's knowledge. Others consider this illegal. File a Complaint: File an official complaint with the Federal Trade Commission (FTC), which oversees collection agencies. Send a complaint form or a letter with the collection agency's name, address, collector's name, dates and times of conversations, and names of witnesses, and copies of offending materials you received. Copy your complaint to the state agency (regulates collection agencies of the state where the agency is located) and to the original creditor and collection agency). To protect themselves from their own liability they might cancel the debt. Sue the Debt Collector: A victim of abusive behavior can sue the collection agency only in extreme cases. You can alone sort it in small claims court, or hire a lawyer, but the lawyer's fee could add to your costs. You're entitled to (unrelated to actual losses) up to $1,000 for any violation of the FDCPA. |
