Dealing with debt collectors is a stressful encounter, especially when they turn harassing or aggressive. Debt collectors have the right to recover past-due debts but not through means that are illegal or abusive. You should be aware of your rights and how to defend yourself against discrimination. This handbook will guide you on how to recognize aggressive debt collection, know your rights under the law, and how to deal with debt collection effectively.
What is Aggressive Collection?
Aggressive collection is more than reasonable requests for payment and could include activity intended to harass or intimidate you. Some examples are:
- Too Many Calls: Continuous calls at inconvenient times, i.e., early morning or late evening.
- Threats: Threats to sue, arrest, or attach property when not available or in contemplation.
- Abusive Language: Cussing, yelling, or insulting over the phone.
- Deceptive Practices: The collectors might pretend to be law enforcement or legal professionals, or misrepresent the amount due on the debt.
- Extreme Threats: Rarely, collectors might even threaten to harm your pets or family members physically, although this never happens.
Legal Protections Against Abusive Debt Collectors
There are also some laws, the Fair Debt Collection Practices Act (FDCPA), that also shield consumers from abusive debt collection. The FDCPA mandates:
- Limited Contact Times: Collectors are not permitted to contact you between 8 am and 9 pm without your permission.
- No Abuse: Collectors will not abuse or use obscene language.
- Identification: Debt collectors must identify themselves and are not allowed to impersonate lawyers or government officials.
- No False Threats: Collectors are not allowed to threaten action they cannot or will not take.
In addition to federal protection, the majority of states have their own statute that imposes further requirements on the time and way of debt collector communication with you, so it pays to invest time in getting acquainted with the law in your state.
How to Document Harassment
Whenever you see harassing collection activity, to document each occurrence is important, especially if you have to file a lawsuit. This is how you get organized:
- Use a Call Log: Date, time, and content of every phone call received from collectors and collector’s name.
- Save Written Correspondence: Copies of correspondence by letter, email, and anything mailed to collectors.
- Ask for a Debt Validation Letter: The letter must validate the debt you owe, the creditor’s name, and your FDCPA rights. The collector must cease collection if they fail to do so.
Effective Methods of Dealing with Harassing Debt Collectors
Following are some methods ahead to deal with harassing debt collection:
- Send a Cease and Desist Letter: You can request a collector to stop calling you. Send it by certified mail and keep a copy.
- Be Cool and Courteous: It is easy to strike back on an emotional level, but coolness and courtesy are probably best. Any threats that collectors make are probably just attempts at intimidating you.
- Negotiate a Payment Plan: If you do owe the debt and you can pay it, try to negotiate a reasonable payment plan. And get all the deals in writing.
What to Do When the Harassment Persists
If the debt collector continues to ignore the FDCPA, you do have some recourse under the law:
- File a Complaint: You can report a complaint to the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC). The agencies receive and consider complaints and act against unfair practices.
- Sue the Collector: You can sue the collector if the harassment persists. The FDCPA entitles you to recover up to $1,000 in damages and compensation for any harm inflicted by the harassment, including attorney’s fees. Just so you know, suits need to be filed within one year of the violation.
When to Get Legal Help
Legal representation may be needed to explain the technicalities of debt collection:
- Bankruptcy: If you owe too much money, bankruptcy will keep creditors from collecting with an automatic stay so that you can organize your finances. It’s something to be done in consultation with a specialist.
- Using an FDCPA Lawyer: In the event you are being constantly harassed, an attorney who specializes in the FDCFA can cause you to sue the debt collectors. Most FDCPA lawyers operate on a contingency fee basis, which means you pay nothing if you don’t obtain a judgment.
Taking Charge of Your Finances
Dealing with rude debt collectors is intimidating, but being aware of your rights and standing up for yourself, you can take back control. Keeping everything in writing, staying calm, and considering the option of an attorney can deter the harassment. Negotiating, sending a cease-and-desist letter, or going to court might be your next move, but keep in mind, you don’t have to do it alone.
You should be treated with respect regardless of how much you earn. Through the effort of paying your debt and claiming your rights, you regain your sanity and become stable financially.