It’s an undeniable fact that dealing with debt is stressful enough on its own. Adding relentless collection calls to that makes it a lot more overwhelming. Unfortunately, some debt collectors out there do use illegal and unlawful collection tactics. They lie about your debt and then keep pestering you repeatedly on the phone. Unfortunately, as it’s a serious and growing issue, there’s a FDCPA (Fair Debt Collection Practices Act) federal law solely for the purpose of consumer protection. In simpler words, even if you owe debt, you don’t have to endure harassment by the hands of a third party.
Understanding the FDCPA laws and knowing your rights is of utmost importance especially if you want to put the harassment to end and protect your peace of mind. Excessive and threatening calls are a part of debt collector’s strategy to put you in a pressurizing situation where you feel powerless and send the money, overlooking your rights. If you receive such calls, don’t be scared and don’t panic. Know your rights and use them when required!
Understanding Debt Collection Harassment
There’s a very thin line that separates debt collection from harassment and most of the times these collectors cross the line intentionally to put the borrower in a difficult and intimidating situation. If the collector is using abusive language, deception or unfair practices to get the money out of your pocket then this clearly violates the FDCPA laws and you should take immediate action.
Common harassment signs include;
- Frequent calls at odd hours (before 8 am and after 9 pm)
- Calling you during your work hours even though you’ve stopped them
- Threatening you with arrest and violence
- Repeated calls with the intention to annoy you
- Use of profane and abusive language
- Calling your friends, family and colleagues and disclosing your debt details
What Are Your Legal Rights Under The FDCPA?
As said earlier, the sole purpose of the FDCPA federal law is to protect consumers from unlawful debt collection practices. Under the law, you have the right to;
Demand that the collector stops contacting you
You have the right to ask the collector to stop contacting you. You should send them this in writing. Once the collector receives your letter, he should then only contact you to inform you about any confirmation or in case he’s going to take any legal action against you.
You have the right to dispute the debt
Under the FDCPA, you have the right to dispute the validation of a debt. It’s just that you should do that within 30 days of the first call from your collector. Upon the dispute, your collector is obliged to provide you a verification of the debt before contacting you again.
You can request verification of the debt
You have the right to request detailed information of the debt. This includes the name of the creditor, the total amount due and the right to dispute it.
Steps You Can Take To Legally Stop The Harassing Calls
If you are tired of the debt collection agency constantly threatening you with violence and arrests then here are some important legal steps you can take to put an end to it;
1-Keep Records Of All Your Communication
One of the most important things is to keep a record of all interactions with your collector. Date and time of the call, the content of the call, threats and abusive language, you must keep a written record of it all. This is important especially if you want to take legal action against the collector for violating the FDCPA.
2-Send A Written Cease And Desist Letter
Under the FDCPA, you have the right to tell your debt collector to stop contacting you. This must be done in written form and here’s what it should include;
- A clear statement to cease communication
- Your contact information
- Request for confirmation in writing
You should send this letter through a certified mail so that when you need evidence of sending this letter, you have it.
3-Disputing The Debt In Writing
If you think that there are errors in your debt or that you don’t owe anyone any debt then it’s important that you send your collector a debt validation letter within the first 30 days of the initial contact. The collector is then obliged to provide you the information you need;
- Name of the creditor
- The total amount you owe
- Proof that you owe the debt
4-Filing A Complaint
You can file a complaint against the violation of your consumer protection rights through FDCPA, Better Business Bureau, Consumer Financial Protection Bureau (CFPB) and your state’s attorney general. All these organizations can help protect you by taking a legal action against your collector.
What To Do If The Debt Is Legitimate?
Where enduring harassment is never okay, what you must know is that stopping calls won’t erase your debt and you’d still owe the money. If your debt is legitimate and your financial situation isn’t allowing you to repay it then it’s best that you start exploring debt relief options. There are multiple debt relief options out there including debt consolidation, debt settlement, debt management. It’s just that the sooner you deal with your outstanding balance, the better it’ll be for you.
Dealing with harassment from your collector is another issue and it sure can be resolved if you take the right measures. However, you should first focus on the root cause and that is your unpaid debt. It’s best if you deal with your original creditor directly and request a lower settlement negotiation to get rid of the burden at once.
A debt settlement negotiation is when your creditor reduces the amount of the debt you owe. In exchange you have to pay the creditor a lump sum decided as per the agreement. Once you’ve made the payment, your creditor will then mark your account as “Settled”. It sounds like the easy way out but it’s really not. No matter which debt relief option you choose, it’ll come with its own consequences. Especially when it comes to a settlement, first is that there’s no guarantee whether your creditor will agree to reducing your debt and secondly even if he does, it’ll have a negative impact on your credit report.
Seek Professional Consultation
In such situations where you are stuck with debt and harassing collection calls, it’s best if you seek legal and professional help because dealing with such issues can be really overwhelming. You need a debt relief service provider like Mountains Debt Relief that provides authentic and professional services. They’ll help evaluate your financial situation and then put the right options in front of you. For example, if you find debt settlement as the most suitable way out then the company will settle the debt for you with your creditor.
What Not to Do When a Debt Collector Calls
When a debt collector calls, it’s important that you choose your words wisely or they can use them against you. For example, if you don’t talk carefully, you might confirm the ownership of a debt that’s illegitimate or even revive the statute of limitations.
- Never confirm that the debt is yours. Always ask for a debt validation letter first to confirm that you owe the debt and the amount mentioned is correct.
- Never offer any good faith payments because even a verbal offer can revive the statute of limitations and your collector can get more time to take a legal action against your old debt.
- Never use any hostile words because these calls are being recorded and any use of aggressive language can damage your case in the court.
Overall Verdict
Even when you owe money, you have all the rights to be treated with respect and dignity and if someone’s trying to bring you down using unethical and unlawful methods then you sure should take action against them. Some debt collection calls aren’t just unethical, in fact, they are illegal which is why learning your rights under the FDCPA is of utmost importance. You should know when the collector has crossed the line and when you need to take legal action to regain the peace of your mind.
FAQs
Q1. Will Sending The Cease And Desist Letter Make Your Debt Go Away?
No, the cease and desist letter will just stop the communication from your collector, it won’t erase your debt. If the debt is valid, you still have to repay it or else you can get sued or face other legal actions.
Q2.Are Original Creditors Bound By The FDCPA?
No, the FDCPA only covers third party collection agencies and not the original creditor. It also depends on the state you are living in. In some states, the FDCPA does regulate original creditors as well.
Q3.Will Bankruptcy Stop Debt Collection Calls?
Yes, if you file for bankruptcy, it’ll automatically trigger a stay which means that no collection agency can contact you, file any lawsuits against you or garnish your wage. In order to explore this option, it’s best if you consult a bankruptcy attorney.