Things can sometimes get really overwhelming when your unpaid debt is piling up. It’s not just the debt that you have to worry about but the increasing interest and the impact of missed payments on your credit too. On top of that, if your creditor starts harassing or threatening you, it can put unimaginable strain on your mental health. Fortunately, there are both state and federal laws out there specifically made for the protection of consumers against deceptive, abusive and unfair debt collection practices. You as a consumer have all the right to take action if any of your creditor or collectors try to violate the debt collection laws.
Today, we are going to talk about all the things that constitute a violation of the debt collection laws, your rights and the steps you must take if your creditor ever crosses the line.
All You Need To Know About The Debt Collection Laws
The Fair Debt Collection Practices Act (FDCPA) offers protection to the consumers against overly aggressive and deceptive debt collection actions by third parties like debt collection agencies. It’s a primary federal law that states all the terms regarding how a collection agency should act and what counts as a decent way to recover the loan amount. In some states the FDCPA doesn’t cover the original creditors but in most states they do extend the protection of the consumers against the creditors.
Here are the key provisions of the FDCPA;
- No debt collector is allowed to harass or threaten the borrower (using abusive language or making repeated calls).
- Collectors aren’t allowed to call before 8 am and after 9 pm unless the borrower has agreed.
- Collectors cannot call you at your workplace especially if you’ve informed them about your job and the fact that you aren’t allowed to receive such calls during your work hours.
- Pretending to be government officials or attorneys or misrepresenting the amount you owe.
- Collection agencies aren’t allowed to share your personal information with any other third parties without your knowledge.
- Using aggressive collection tactics even after you’ve requested for debt verification.
What Counts As Violation By Collectors And Creditors?
For someone who is new to such scenarios where collectors are using aggressive tactics to recover the loan amount, it’s a little confusing to tell if they are crossing the lines or not. Here are some examples that indicate unlawful behavior and violation of the FDCPA;
- Frequent calls even after you’ve requested a cease and desist order
- Threatening you with a legal action or an arrest especially if they don’t intend to do so
- Failing to provide you debt validation especially if you’ve disputed it within 30 days.
- Disclosing and sharing your details about the debt with your family, friends and colleagues.
- Attempting to collect the debt that has already been paid or resolved via bankruptcy.
Step By Step Guide On How To Deal With Debt Collection Violation
You have all the rights to protect yourself and take legal action against any creditor or collection agency that violates the federal protection laws. In order to do so, it’s important that you know the right pathway and the right steps first.
1-Document Everything
To take an action or file a complaint against the unlawful actions of your creditor it’s important that you keep a record of everything. From voicemails to emails, record it all. In case of phone calls, immediately write down the content of the conversation, the date, time and the name of the person. Keep copies of all the communication. In case you’ve stopped them from calling you anymore and they still keep contacting you, make sure to note down the time and name of the person. All of these documents will be quite crucial if you want to take any legal action.
2-Ask For Debt Validation
When you receive a collection notice, you are supposed to request a validation of debt within 30 days of getting the notice. This way, the collector will have to provide proof that the debt belongs to you and that they have the right to collect it.
3-Sending A Cease And Desist Letter
As a borrower, you have all the rights to stop the communication. In order to do so, you should send a cease and desist letter to the collector via a certified mail along with a return receipt. After getting the letter, the collector has to stop the communication and only contact you when he has to inform you about a legal action or confirm a receipt.
4-File A Complaint In Case Of Violation
There are multiple ways to file a complaint against a violation of your rights. Here are the options you have;
Federal State Commission
- Consumer Financial Protection Bureau (CFPB)
- File a complaint with your state attorney’s general office
- Better Business Bureau (they might not help you with any legal action but it can definitely help in raising public awareness)
5-Get In Touch With A Consumer Rights Attorney
If nothing works, it’s best to hire a consumer rights attorney. You need a lawyer who specializes in consumer protection and can help evaluate your case. You can sue your creditor for;
- Statutory damages (up to $1000)
- Actual damages (loss of wages or emotional distress)
- Court cost or attorney fees (in case you win)
It’s best if you find an attorney that offers free consultation or someone who only charges if you win the case.
How To Know If A Debt Collector Is Legitimate?
It’s important to know if the debt collector trying to approach you is legitimate or not. You don’t want to end up falling to a scam especially during such tough and critical times when you are already dealing with the stress of piled up debt. Here’s how you can tell if the collector is authentic or not;
- The collector must first identify themselves to you and tell you about the company they are working for.
- The collector must inform you about your rights to dispute within 30 days.
- He must provide you with a written notice within 5 days or the first contact. The notice must contain all the necessary information including the total amount you owe, the name of the creditor and the process to dispute the debt.
In case a collector refuses to provide you with all this information then it’s definitely a red flag and you should file a complaint against the collector immediately.
Preventative Tips That Can Come In Handy To You
- It is of utmost importance to learn about the FDCPA laws and the state debt collection laws.
- In order to spot any invalid or outdated debt, it’s important that you keep reviewing your credit report time and again. In case of any errors, you must dispute immediately.
- Try to communicate with your collector in writing as it’s easier to keep records of your communication this way.
- Even if you think that you don’t owe any debt and the collection is illegitimate, you should still take action or else you can end up with a lawsuit or negative credit marking.
Final Thoughts
Enduring harassment and abusive collection tactics while you are already dealing with debt can take a toll on your mental health. There are solid debt collection laws for fair treatment of consumers and you have all the right to stand up against such violations. If your creditor or collector is crossing the lines then you must take immediate action against them by documenting the violation and seeking legal help. Even if you are in debt and your financial situation isn’t up to the mark, it doesn’t mean that you can let someone harass you. There are multiple legal tools out there specifically for the protection of your rights.
FAQs
Q1. What Can I Do If A Collector Keeps Calling During Work?
You have the right to ask your collector to stop calling you at work. If they still continue to do so, you can take legal action against them if they aren’t complying with the FDCPA laws.
Q2. Does The FDCPA Apply To Original Creditors?
No, the FDCPA just covers third party collectors like a debt collection agency. They don’t cover original creditors like banks. However, some states do extend consumer protection laws that cover original creditors. You should check this with your state’s laws.
Q3.What To Do If The Debt Isn’t Mine?
When you get the initial collection notice, you are supposed to dispute it within 30 days to inform them that the debt isn’t yours. If the collector continues without validation then you sure can take legal action against them.
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