Ten Things Debt Collectors Are Prohibited From Doing
According to the Urban Institute, nearly 71 million Americans have debt collection reported in their credit files. This means that almost one-third of our nation is likely receiving letters and calls from debt collectors on a regular basis.
According to the Urban Institute report, Nevada has nearly 50% of its residents in debt collection. Consider that while so many Americans suffer from unrelenting debt, the wealthiest of the wealthy, roughly 600 people, less than one-hundredth of one percent, is said to own more than 50% of this nation’s wealth.
Fair Debt and Collection Practices Act
In the meantime, Americans need to know their financial rights. According to the Fair Debt and Collection Practices Act (FDCPA) and its congressional findings, there is abundant evidence of many debt collectors using abusive, deceptive, and unfair debt collection practices. Abusive debt collection practices contribute to the number of personal bankruptcies, marital instability, the loss of jobs, and invasions of individual privacy.
Collectors are prohibited from actions like these:
1. Call repeatedly or continuously, which is considered per se harassment. [15 USC 1692d] § 806(5).
2. Use obscene, profane, or abusive language.
3. Using harassing language. [15 USC 1692d] § 806(2)
4. Call you during late or early morning hours. Call before 8:00 am or after 9:00 pm [15 USC 1692c] § 805(a)(1)
5. Add on any extra fees to your original credit or loan agreement doesn’t allow. [15 USC 1692f] § 808(1)
6. Call at times the collector knew or should know was inconvenient for you.
7. Calls at these times are considered harassment. [15 USC 1692c] § 805(a)(1)
8. Use or threaten to use violence if you don’t pay the debt.
9. Collectors can’t threaten violence against you. [15 USC 1692d] § 806(1)
1o. Collectors are prohibited from threatening to sue you, garnish wages, take the property, cause job loss, or ruin your credit when the collector cannot or does not intend to take action. [15 USC 1692e] § 807(5)
There are legal actions you can take against collection agencies that violate your rights:
- Organizations and law firms can represent you against unscrupulous debt collectors by filing suit in state court. To prevail, you must be able to establish that the debt collector violated the FDCPA. If your claim is successful, you may be able to recover $1,000 in statutory damages for each violation.
- You can file a complaint with your state’s attorney general and the Federal Trade Commission
- You can submit a formal complaint with the Consumer Financial Protection Buureau.
