Stand Up for Your Right Against Collection Agencies Utilizing Prohibited Tactics

You don't have to be the victim of collection agencies using unfair, coercive or illegal tactics to collect their debts. Collection agencies who overstep their bounds can face court fees, fines, and even suspension of their license. To fight back against deceptive and unlawful practices, you first need to know your federally protected rights. Fighting back against collection agencies using unlawful tactics can even result in removal of your entire debt.

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Individuals facing collection proceeding have federally protected rights under the Consumer Protection. Some of the specific provisions provided include:

1. Abuse or Torment

A collection agent cannot use or threaten to use force against you, your property, or another member of your family. They are also prohibited from calling you repeatedly, not identifying themselves, listing you on a "deadbeat" list, or listing your property for sale.

2. Contacting You

Direct communication from collection agencies is limited to reasonable hours. Generally that means between the hours of about 8am-9pm, unless you inform them those are not good times for you. They are prohibited from contacting you at work, if it's not allowed. Most importantly, if you request it, all contact must stop entirely; unless it involves notification of either a settlement or that you are being sued.

3. Third Party Communication

With few exceptions, collection agencies cannot talk to outside parties about your case. One notable exception is to find your whereabouts and then they can only ask where you are and give their name. They prohibited from naming their employer or talking about your case. They cannot contact that person again unless they have reason to believe they gave misleading or incomplete information or they have permission for further contact.

All communications must go through your attorney, if you have retained one. This is true unless you have given permission for the collection agency to contact you or your attorney does not respond to their attempts. They are also allowed to contact your spouse or parents if you are a minor, unless you have asked in writing for them not to. Even though it's common, they are not allowed to harass your parents or your adult children to try to get you to pay.

4. False or Misleading Representation

Some debt collectors have used fake legal documents and impersonated law personnel to try to collect. These tactics, as well as falsification of documents or making them appear they are from a lawyer, are illegal. Misrepresentation of the facts about your case, such as how much you owe or the legal status of your debt, is also strictly prohibited. In fact, collection agencies cannot threaten you with any kind of legal action, unless they actually plan to follow through with it.

5. Unjust Practices

Other common tactics that are not allowed include the addition of fees and interest to your original debt, threatening criminal prosecution, depositing a post dated check without permission, or causing you to incur further costs due to their collection efforts. Consumers are protected under the law from these and any other unfair, unreasonable, or crooked tactics.

6. Your Options

If you have been victim of any of these types of harassment or abuse, you need to complain to the original creditor, the Federal Trade Commission, and your state Attorney General. You could have your whole debt forgiven by your original creditor in some circumstances, as they can be held liable.

Suing A Collection Agency for Violations

You can sue a collection agency for harassment and for violation of the Consumer Protection. You could be entitled to actual damages, plus pain and suffering. The collector could also be assessed punitive damages for especially egregious offenses. It will most likely require both a witness and documentation of ongoing abusive behavior for you to win your case.

You need to know your rights when facing unscrupulous collection agencies. Hold them accountable and report any violations to the proper authorities right away to avoid being their next victim.

See Also

Bringing an End with Collection Agency Calls

Common Problems Dealing with a Collection Agency

Collection Agencies-Kung Fu System

External Links

Collectionagencyservices.net

Investopedia.com

Moneyproblems.ca