Third-party collection agencies are hired by original collectors to recover monies owed by people who have fallen behind on their bills. Perhaps you have been contacted by a debt collection agency, and are not able to pay what they demand. Whether you just overspent, made a mistake on your budget, or you have become a victim of circumstances such as unemployment or disability, it certainly doesn't feel good to be delinquent on your debts. You may feel guilty about not being able to pay, or you may feel that you don't owe the debt due to a mistake on the part of the collector. You may be in the process of disputing a debt when it is sold to a third party or debt buyer.
But no matter what the circumstance, there are some things that debt collection agencies are simply not allowed to do. Below is a brief overview of debt collector laws, and what to do if you are ever in a situation where an agency is using these illegal debt collection tactics.
Harassing Phone Calls
Collection agencies are not allowed to call you prior to 8 a.m. or after 9 p.m., unless you have told them they are allowed to call you outside of those hours. Additionally, if you have informed a collection agency that you are not to receive personal calls at work, they are then not allowed to call you at your workplace. If they continue to ignore these rules, they are breaking the law under the Fair Debt Collection Practices Act (FDCPA). Furthermore, you may inform them, in writing, that they are not to contact you about your debt via phone, period. Of course, this does not make the debt go away, but they will not be allowed to call you about it any longer.
Making Threats
Using obscene language, hollering, telling you, "We know where you live, so you better pay us," and similar threats are not to be tolerated. They are flat-out illegal. Similar threats, such as threatening to repossess your house or car (if they are not a mortgage company or title holder to your car), are bogus and illegal under the FDCPA. They may also try to threaten to garnish your wages or have you arrested. If your state allows a lawsuit to be brought against you for the debt, and they win, they may be able to collect via wage garnishment. Otherwise, they have no power to take your items or wages. Furthermore, owing debt is a civil matter-debt collection agencies have neither the authority nor the credibility to get a warrant issued for your arrest.
These are just a few examples of illegal debt collection practices that are used by unethical collection agencies. If you are ever in a situation where you are being harassed, do not tolerate it. Contact a fair debt attorney to assist you, and file formal, written complaints with your state's Attorney General and the Federal Trade Commission.
Sergei Lemberg, Esq. is the Principal of Lemberg & Associates, a law firm specializing in fair debt collection law, lemon law, and other consumer law.
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