Illegal Debt Collection Practices
One of the most stressful aspects of owing money arises because of illegal debt collection practices. Although creditors certainly have a right to demand to be paid, collection agencies are held to different standards. Quite simply, there are right and wrong ways to go about debt collection by bill collectors working for collection agencies — and the difference between the two has been made clear in the federal Fair Debt Collection Practices Act (FDCPA) (PDF file).
What types of things are considered illegal debt collection practices by collection agencies?
Under the FDCPA, the following practices are illegal:
- Calling repeatedly
- Calling at unreasonable times (generally between the hours of 9 p.m. and 8 a.m. unless you work the night shift)
- Calling you at work if your employer prohibits this and/or if you have requested they stop doing so
- Calling you without identifying who they are
- Using abusive, obscene, or profane language
- Harassing you
- Threatening you with physical violence
- Claiming to be lawyers
- Making materially false or otherwise misleading statements
- Sending you documents that claim or appear to be legal in nature
- Adding unauthorized charges to your account
What can I do if I think a collection agency is engaging in illegal debt collection practices?
If you believe a collection agency is engaging in illegal debt collection practices, what follows are some steps you could take to get the treatment to stop:
- Demand in writing that the collection agency stop contacting you unless it is to notify you they are ending their attempts to collect the debt or are suing you.
- Keep track of all the illegal practices in a log or journal.
- Try to have others present for the illegal behavior as witnesses.
- File a complaint with the Federal Trade Commission.
- Sue the collection agency.