We receive calls every day from people just like you who are trying to pay their bills but have suffered a financial crisis and have fallen behind. They report that creditors and collection agencies are threatening to take their homes, garnish their wages or levy their bank accounts unless the bill is paid immediately. We hear horror stories of collection agents repeatedly calling their homes, their families or their place of employment to scare them into paying their debts. Angry collection agents bang on their doors or yell into the phone using abusive language and threatening legal action if the bill is not paid. All of these actions are considered creditor harassment and you have rights to make them stop.
What Are Creditors Not Allowed To Do To Collect A Debt?
Creditor harassment was such a serious problem that Congress enacted the Fair Debt Collection Practices Act (FDCPA) to stop creditor harassment by prohibiting debt collectors from taking certain actions to collect a debt. It is designed to protect consumers and stop creditor harassment by limiting the actions of debt collectors. Under the FDCPA, debt collectors are prohibited from taking the following actions to collect a debt:
- Harassment – Debt collectors are prohibited from harassing or abusing consumers. For example, they cannot use threats of violence or harm, publish a list of names of people who cannot pay their bills, use profane or obscene language or use the telephone as a means to repeatedly call someone to annoy or harass them.
- Contact Times – Debt collectors are prohibited from contacting you at inconvenient times or places. They must not call before 8am or after 9pm unless you specifically agree. They may not contact you at work if they are told that you are not allowed to receive calls at your place of employment.
- Give False Statements – Debt collectors are prohibited from telling lies to collect a debt. Examples include claiming you have committed a crime by not paying your bill, telling you that documents you received are legal forms when they are not, claiming they are attorneys or government representatives, or are calling on their behalf, and claiming they work for a debt relief agency when they do not.
- Committing Unfair Practices in Collecting the Debt – Debt collectors cannot deposit a post-dated check early, try to collect interest or other fees that the contract does not specify or contact you by postcard.
- Other Actions Prohibited – Debt collectors cannot say you will be arrested if you do not pay your debt or that they will seize or garnish property or wages unless the law permits them to do so AND they intend to do so. Debt collectors cannot give false information about you to anyone, including a credit reporting agency. They are also prohibited from sending you anything that resembles an official document from a government agency.
How Can You Stop Creditor Harassment?
There are steps that you can take to stop creditor harassment.
- Send A Written Letter – Send your debt collector a written letter stating that you do not want any further contact from them. Keep a copy of the letter for your records, send the letter by certified mail and request a return receipt so that you have proof the debt collector received the letter. The debt collector can only contact you again under two circumstances: to tell you they will not contact you again or to inform you that they, or the creditor, will take a specific action such as filing a lawsuit. The letter you send does not absolve you of the debt, but it can stop creditor harassment.
- File a Report with the Federal Trade Commission – If you believe you are the victim of creditor harassment, you can file a complaint with the FTC, your state Attorney General’s office and the Consumer Protection Bureau. Again, your liability for the debt remains, but the debt collector should be reported for the harassment.
- File a Lawsuit – You have up to one year from the date of the violation to file a lawsuit. A judge could grant you damages and require the debt collector to pay a fine; however, these cases can be difficult to prove and you will still owe your debt.
- File Bankruptcy – Filing a bankruptcy action immediately stops creditor harassment because creditors are prohibited from taking ANY action to collect a debt under the bankruptcy automatic stay. Filing a bankruptcy not only takes care of creditor harassment but it also discharges the debt and removes your legal liability to repay the debt. Bankruptcy is often one of the best options for those experiencing overwhelming debt problems.
We understand how stressful dealing with creditors and debt collectors can be. For additional information about debt solutions, download our Debt Solutions 101 eBook for free, and learn about options that will help you eliminate debt and any ensuing creditor harassment.
