When a Debt Collector Calls
| 19 September 2009
While you are working on your debts, trying to see who to pay first and how much, debt collectors may (will) begin to call you. Keep in mind that their pay depends often on how much they collect from individuals accounts against the debt. So they can be very persistent and aggravive. The worst of them may even try to use scare tactics and verbal abuse to intimidate you into paying.
Do not be cowed into paying a debt because a collector puts that type of pressure on you. The debt this person is trying to collect on may not be a high priority for you. Such as saving your home or car so toy can get to work. Also, depending on how the debt collector applies the pressure, he may be violating your legal rights under the federal Fair Debt Collection Practices Act (FDCPA).
For example, the law says that a debt collector cannot:
(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.
(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.
(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)1 of this Act.
(4) The advertisement for sale of any debt to coerce payment of the debt.
(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
(6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure of the caller’s identity.
False or misleading representations
A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.
(2) The false representation of—
(A) the character, amount, or legal status of any debt; or
(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.
(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.
(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.
(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.
(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to—
(A) lose any claim or defense to payment of the debt; or
(B) become subject to any practice prohibited by this title.
(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer.
(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.
(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.
(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.
(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action.
(12) The false representation or implication that accounts have been turned over to innocent purchasers for value.
(13) The false representation or implication that documents are legal process.
(14) The use of any business, company, or organization name other than the true name of the debt collector’s business, company, or organization.
(15) The false representation or implication that documents are not legal process forms or do not require action by the consumer.
(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act.
There is much more to the law on this, I suggest you get a copy from ftc.gov and read it as time allows.
Important note:
The FDCPA applies to debt-collection firms and to attorneys who collect debts, but not to creditors’ own in-house debt collectors. However, most states have their own debt-collections laws and some state laws apply to in-house debt collectors. Contact your state attorney general’s office to find out about the law in your state.
Be careful how much information you share with a debt collector.
The information could be used against you later. Do not lie, but do not offer any information that you are not asked about and never share information about your bank account or about your other assets. If a debt collector asks you about them, politely let him know that you will not answer his questions.
If a debt collector violates your federal or state debt-collection rights or if the debt he is trying to collect is substantial and/or is collateralized by your home or some other important asset, hire a consumer law attorney. You should also hire an attorney if you are sued by a debt collector.
Bottom line, there is a lot of info, take your time, learn as much as you can about the laws. This will give you a much better hand when dealing with collectors when times get hard for you.
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