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When Debt Collectors Cross The Line Bogus Threats Illegal Collection Tactics
f you are behind on your violations are actually reported
bills and on the receiving by consumers, so the data
end of collection phone collected by the FTC represents
calls, you will probably hear only a tiny fraction of the true
collectors make some very scope of the problem. Even so, a
threatening statements. While pattern of abusive and illegal
most debt collection collection activity has been
professionals try to stay within well-documented by the FTC, and
the boundaries defined by the it is getting worse instead of
Federal Fair Debt Collection better.
Practices Act (FDCPA), many
others cross the line on a Here are some common threats made
regular basis. Last year, the by debt collectors:
Federal Trade Commission
(www.ftc.gov) received more than "We're going to take your house
58,000 complaints about debt unless you pay this bill
collectors, a figure which immediately." This is a bogus
represents 17% of the total threat. Unless the debt being
number of complaints received by collected is secured by the house
the FTC. Consumers complain about in question (i.e., a mortgage or
the collection industry more than home equity loan), the creditor
most other industries combined. does not have the power to take
your house away from you.
Collection professionals would
probably respond that the "If you don't pay this bill
enormous size of the industry and today, we're going to have a
the sheer volume of collection warrant issued for your arrest."
activity accounts for the large Nonsense. Failure to pay a debt
number of complaints. However, is a civil matter, not a criminal
only a small percentage of matter. Threatening a debtor with
jail time or accusing them of the FTC last year cited the
committing a crime is totally threat of violence as the cause
against the rules. of the complaint. This is
absolutely illegal.
"We don't care that you sent a
cease communication notice. We're Aside from the usual bogus
going to call you anyway." The threats, collectors also use
FDCPA gives you the right to other tactics that are illegal.
terminate contact efforts by a For example, discussing your debt
debt collector. Failure to with a third party is a clear
respect a cease communication violation of the FDCPA. Yet
notice is a clear violation of collectors routinely call
Federal law. neighbors, relatives, and
employers to obtain information
"We're going to garnish your on debtors. So long as the
wages to recover this debt." A collector does not discuss the
collector can only threaten actual matter of the debt, they
action it has the legal authority still have their toes on the
to take, and the vast majority of right side of the line. But as
collection agencies have zero soon as they mention or even hint
legal authority. Your wages can that they are calling about a
only be garnished by a creditor debt, they have crossed the line.
after they have won a judgment
against you in a lawsuit.
Since many debtors have taken to
"We know where you live, so you screening their phone calls at
better pay up." Yes, threats of home to cut down on the
violence still happen in this relentless barrage, debt
industry. Nearly 300 complaints collectors frequently call at
against collectors received by work when they can obtain an
office number. In theory, a actions, what can you do to
consumer can get the collector to protect yourself? First and
stop calling at the office simply foremost, it's important to know
by stating that they are not and understand your rights as a
allowed to receive personal phone consumer. A description of your
calls at work. That puts the rights under The Fair Debt
collector on notice that such Collection Practices Act may be
activity constitutes interference obtained directly from the FTC
with the consumer's employment, (http://www.ftc.gov/bcp/conline/p
which is not permitted. In ubs/credit/fdc.htm).
practice, however, collectors
routinely ignore this rule and If you believe that a collector
continue to call at work. has violated your rights in their
attempt to collect from you, then
There are many other techniques you should not hesitate to file
of harassment and intimidation formal complaints with the
that cross the line from Attorney General for your state
permissible to impermissible (www.naag.org) as well as the
collection activity. Use of Federal Trade Commission. If
obscene or profane language, enough complaints are received
shouting, constant and about a particular collector,
unrelenting telephone calls, then these authorities are
failure to respond to written empowered to bring an enforcement
disputes, and publication of action against them, which may
debtor information all constitute result in expensive fines that
illegal activity as defined by will make the agency or collector
the FDCPA. think twice about using such
tactics in the future. You also
So if you are on the receiving have the right to bring a lawsuit
end of illegal collection yourself against a collector that
harasses or abuses you, or line, you should still file a
otherwise violates your rights complaint with your state's
under the law. Attorney General as well as the
FTC. If a clear pattern of abuse
One final point. The FDCPA emerges, the original creditor
technically only applies to can be charged with unfair or
third-party debt collectors, deceptive acts or practices,
which includes collection either under state law or under
agencies and collection the FTC Act that governs conduct
attorneys. It does not apply to of commerce in our country.
the original creditor when
collecting their own debt. For To sum up, if you are on the
example, if you borrow money from receiving end of collection
a bank, the bank is not regulated harassment, don't just take it.
by the FDCPA. However, numerous Educate yourself on your rights
other public laws protect as a consumer, vigorously dispute
consumers from deceptive or debts that you don't believe you
abusive collection practices even owe, and take action yourself in
by original creditors, and many the form of complaints to your
states also have laws that Attorney General and the Federal
parallel the FDCPA but go further Trade Commission. By standing up
and include original creditors in for your rights, you can put a
the definition of debt collector. stop to bogus threats and illegal
So if an original creditor is collection tactics.
harassing you or has crossed the
About the Author:
Charles Phelan has been helping consumers become debt-free without bankruptcy since 1997. A former executive at a large national debt settlement firm, he created the Debt Elimination Success Seminarâ„¢, an audio-CD course that teaches consumers do-it-yourself debt negotiation. http://www.zipdebt.com
Source: www.isnare.com
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