Abusive Debt Collection Practices

Abusive Debt Collectors:

Debt collectors are regulated by numerous state and federal laws in their debt collection activities. That's where the CCRC can help. Many people know that debt collectors cannot abuse them on the phone or in writing.  What many people don't know is that they have a lot of other legal rights, too.

For example, a debt collector cannot call you at work if they know that it is inconvenient for you or that your employer prohibits it. Debt collectors cannot tell others about your debts, like your next door neighbor or your co-worker.  Debt collectors also must be licensed and bonded in many states if they are collecting the debts of others. These are just a few of the numerous protections you have as a consumer.  If a debt collector violates your rights under the Fair Debt Collection Practices Act, a federal statute, along with other consumer protection statutes, our network of attorneys can help you recover for the damage caused by that abuse.

Federal Fair Debt Collections Practices Act ("FDCPA"):

As a consumer, you are entitled to file a lawsuit against any debt collector who violates your rights under the federal FDCPA.  In short, the FDCPA allows a consumer to recover their actual damages, statutory damages of up to $1,000 and their attorney's fees and costs.  While this may seem like a modest amount, to debt collectors who violate the law, there is much more at stake: Increased insurance rates, deceased collection rates, potential governmental regulatory action, and the spiraling costs of defending a lawsuit for their illegal conduct.

The deck is stacked against consumers with sophisticated debt collection tactics.  As a consumer, you should not hesitate to shield yourself from these sharp practices and exercise your rights under the FDCPA.  The CCRC maintains a network of attorneys who have the experience, resources and ability to zealously represent you in your FDCPA action against any debt collector.  Our attorneys file federal and state lawsuits against debt collectors who violate any state or federal law.  The FDCPA prohibits any collection efforts which violates any law.  That means that amongst other things, a collector must tell the truth, be respectful to you, and cease communicating with you when you have a lawyer.

We firmly believe that everyone should pay their just and owing debts.  But our coalition was founded on historic legal principles which rejected debtor's prisons and the like.  Likewise, we think that no debt collector ought to violate your rights to get payment.  It's that simple.  Your legal right to fair, legal, debt collection activity cannot take a back seat to any debt collector's violations of state and federal law.

But what is "Abusive?"

Sadly, consumers often feel that since they actually owe the debt and are unable to make the payments right now, they must endure the abuse piled on them by aggressive debt collectors. This isn't true, and by taking action against collectors, you protect your rights and the rights of others.

Debt Collector Communications With You:
A debt collector may communicate with you by mail, in person, by telephone or telegram.  A debt collector cannot contact you at times or in places that they know are inconvenient to you, such as at work if your employer does not permit it or during daytime sleep hours if you work nights.  A debt collector cannot contact you before 8 a.m. or after 9 p.m.

Stopping Communications:
If you send a written request to a debt collector demanding that they stop contacting you, the debt collector must stop contact immediately, but they may send one last communication to you advising you that they intend to take a specific action against you, including filing a lawsuit.

Attorney Representation:
If you are represented by an attorney concerning a consumer debt (e.g., a consumer rights attorney such as our office, a bankruptcy attorney, or a family attorney), the debt collector cannot communicate directly with you except through your lawyer.

Contacting Others:
A debt collector cannot contact any third party about your debt.  This means that they cannot call, among others, your sister-in-law, your grandson, your landlord, or your neighbor about the debt.  Debt collectors are not allowed to tell anyone but you and your attorney that you owe anyone else money.

Locating You:
A debt collector has a right to contact other people once, and only once, in an effort to locate you. Debt collectors are not permitted to ask neighbors to bring you phone messages, ask you to come across the street for a phone call, or tell other people that they are attempting to collect a debt from you.

30-Day Validation Notice Requirements:
Within five days after you are first contacted, a debt collector must send you a written notice telling you the following:

w The amount of the debt.
w The name of the creditor to whom the debt is owed.
w A statement that unless you, within thirty days after receipt of the notice, dispute the validity of the debt, or any portion of it, the debt will be assumed to be valid by the debt collector.
w A statement that if you notify the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against you and a copy of such verification or judgment will be mailed to the consumer by the debt collector.
w A statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
w Finally, a statement that the communication is from a debt collector attempting to collect a debt and that any information obtained will be used for that purpose.
 

Every debt collector who tries to collect your debt must provide their own 30-day validation notice, even if a previous debt collector has already given such notice.

Rights While Debt Under Dispute:
If you dispute a debt in writing within the 30-day validation period, a debt collector cannot continue to collect on the debt until they have sent you proof of the debt or a copy of the judgment.

What a Debt Collector is Prohibited From Doing to You

Collection Fees Prohibited:
A debt collector may not charge you an interest, fees, or collection charges, except those amounts that were authorized by the agreement with the creditor to whom the debt is owed.

Harassment Prohibited:
A debt collector may not use any language, communication or conduct to harass, oppress, or abuse any person.  This includes prohibits on:

w Use threats of violence or harm to the person, property, or reputation.
w Advertise your debt or publish a list of consumers who refuse to pay their debts, except to a credit bureaus.
w Use obscene or profane language.
w Repeatedly use the telephone to annoy someone or ring the telephone constantly.
w Call people without identifying themselves.

False Statements Prohibited:
A debt collector may not use any false statements when trying to collect a debt. This includes:

w Falsely implying that they are an attorney or government representative.
w Falsely implying that you have committed a crime by not paying a debt.
w Falsely represent that they operate or work for a credit bureau.
w Misrepresent the character, amount, or legal status of the debt.
w Indicate that papers being sent are legal papers when they are not.
w Indicate that papers being sent are not legal papers when they are.

Threats Prohibited:
A debt collector may not use threats when trying to collect a debt. This includes threats like the following:

w You will be arrested if you do not pay your debt.
w They will seize, garnish, attach, or sell your property or wages, unless the collection agency or the w Take any actions against you which are illegal.
w Violate any law in an effort to collect a debt.

Deception Prohibited:
A debt collector may not use deception when trying to collect a debt. This includes deceptions like the following:

w Send you anything that looks like an official document from a court or government agency when it is not.
w Give false credit information about you to anyone.
w Use a fake or false name, unless that name is allowed by state law and properly registered with the state, if required.

Unfairness Prohibited:
A debt collector may not treat you unfairly in attempting to collect a debt. This includes unfairness like the following:

w Collect any amount greater than your debt, unless allowed by law.
w Deposit a post-dated check more than 5 days before the date on the check, without giving you notice of when they intend to deposit it.
w Solicit a post-dated in order threaten criminal prosecution or threaten to cash the check early.
w Make you accept collect calls or pay for telegrams.
w Take or threaten to take your property unless this can be done legally, including wrongfully repossessing your vehicle.
w Contact you by postcard.
 

Your Rights To Sue

Your Right to Sue a Collector for Violations of the FDCPA and the RFDCPA:

You have the right to sue a debt collector within one year from the date you believe the law was violated.  This is what the CCDN does.  If you do not bring your lawsuit within one year of the violation, your claim will be forever barred by a statute of limitations.  If you win your lawsuit, you may recover money for the damage you suffered, statutory damages of up to $1,000 plus court costs and your attorney's fees under the FDCPA, and statutory damages of up to $1,000 plus court costs and your attorney's fees under the RFDCPA.