How Do I Stop Creditor Debt Collection Abuse?

Owing money to a business or lender and struggling to make payments is stressful enough. Harassing phone calls from a debt collection agency take a bad situation and make it worse. Debt collection harassment is not just stressful — it’s often counterproductive to the goal of paying off your debts. And it’s illegal. 

This article will cover prohibited debt collection practices under the federal Fair Debt Collection Practices Act (FDCPA) and some specific actions you can take to stop harassment. As with any area of law, it’s essential to consult with a lawyer about your particular situation.  

Federal and State Laws Protect Consumers From Debt Collection Harassment

When it comes to debt collection practices, “There’s a federal law, the Fair Debt Collection Practices Act (FDCPA), which everybody should be aware of,” says Seth E. Dizard, a debtor-creditors’ rights attorney at O’Neil, Cannon, Hollman, DeJong & Laing in Milwaukee, Wisconsin.

“There are also state laws. Wisconsin, for example, has a state Consumer Act. It doesn’t apply to every situation, but it’s what I could call a trap for the unwary.” 

The FDCPA protects consumers from harassment by debt collection agencies for many types of debt, including: 

• Credit card debt 
• Mortgages  
• Car loans 
• Medical bills 
• Student loans 

An important limitation of the FDCPA is that it only applies to debt collection agencies or those who regularly collect debts. It doesn’t apply to creditors like businesses or lenders trying to collect their debts. However, many states have laws modeled on the FDCPA that apply to creditors directly. 

Debt Collection Regulations and Phone Protections

“Many people don’t know that collecting debts is a highly regulated industry,” says civil litigator Alexander Taylor of Atlas Law Center in Lombard, Illinois. “A lot of the threats and negative things they think they can get away with, and often do succeed with, are prohibited under this law.”

On top of the FDCPA, the Telephone Consumer Protection Act (TCPA) offers more protections to debtors.

There is a three-part test to determine if there’s been a violation of debt collection practices over the phone:

1. Are they calling your cell phone number? 
2. Do they have consent to call you? “Whenever you sign up for a credit card, you sign a bunch of forms that give debt collectors consent to call you,” says Taylor. “Our argument has been, and what we think is the proper interpretation of the law is, that you can freely revoke this type of consent.”
3. Are they using an auto-dialer to call you? “This is the call-center recording-calling-you type calls, but any sort of human intervention cuts the definition of an auto-dialer,” says Taylor. 

“There are perfectly legal ways to collect debt,” he adds. “It’s just that, when businesses step over the line, you have to hold them in check. They step over the line a lot, because they think that no one is going to check them.”

What Activities Are Debt Collector Harassment? 

Under the FDCPA, debt collectors are prohibited from certain activities:

1. Debt Collectors Can’t Harass You

Harassment includes:

• Threats of violence or harm to you or your family 
• Profanity or obscene language, including slurs and insults 
• Repeated phone calls to irritate you 
• Collection calls before 8 am and after 9 pm 

2. Debt Collectors Can’t Lie or Deceive You

Collectors can’t:

• Lie about the amount of money you owe 
• Say there is a lawsuit against you when there isn’t 
• Pretend to be law enforcement or an attorney 
• Say they are taking actions against you, such as wage garnishment or property seizure, when they are not, or when such activities are illegal 

3. Debt Collectors Can’t Treat You Unfairly

Unfair collection practices can go beyond harassment and include:

• Revealing your debts to the public 
• Collecting more than you owe 
• Depositing post-dated checks before the date

Debt Collectors Must Send You a Written Notice

Under Consumer Financial Protection Bureau (CFPB) debt collection rules, debt collectors must send a written notice of the debts when they first contact debtors or soon after first contact. Whether electronic or physical, the written notice is a validation notice.

The notice gives key information about the debt collection, including: 

• The name of the creditor and contact info 
• The amount of the debt  
• Rights of the debtor 
• How to dispute the debt 

If you don’t receive a validation notice with the required information, you can file a complaint with the CFPB. If you respond to the validation notice within 30 days to request information about the original creditor or to dispute the debt, the agency must cease collection until it answers your request or dispute. 

How Do I Stop Harassing Debt Collector Contact? 

The first step to stopping debt collection harassment is to send the debt collector a letter telling them to cease further contact. When sending a cease-and-desist letter to a debt collector, be sure to use certified mail and get a return receipt so you have proof of having sent the letter. It’s also wise to keep a copy of the letter as additional proof. 

“Under the FDCPA, simply telling somebody to stop calling isn’t enough,” says Russell S. Thompson IV, a consumer law attorney in Scottsdale. “You have to do it in writing in order for there to be a cease and desist.”

If the debt collector continues to engage in harassing, deceptive, or unfair behaviors after you have sent a letter telling them to stop, you can report the debt collector to the following agencies: 

• The Federal Trade Commission (FTC) 
• Your state attorney general’s office 

Does Reporting Harassment Eliminate My Debt? 

No, if you owe money to someone, reporting debt collection abuse does not eliminate your debts. It only stops the abusive collection activities. 

Stopping communication from harassing debt collectors is beneficial and within your rights. However, just because debt collectors no longer reach out to you doesn’t mean your debt has gone away.

The longer you wait to deal with debt, the worse your financial situation will likely become, and the fewer options you will have for dealing with debt. If you are struggling to repay debts, speak with a lawyer as soon as possible. 

Beware of Scams Posing as Debt Collectors

“The first thing to do is to find out if it’s a scam or not, because we can’t really go after scam companies,” Taylor says. “These companies aren’t real companies. They ghost themselves, and generally route themselves through India, Africa, or somewhere else. It’s very hard to go after these people because even if we can find them and then sue them, they disappear. In the end, they don’t really have any assets either.”

In the case of collection fraud, Cleveland consumer law attorney Dan Myers states that many of these operations are complete fraud. “If they were caught, they’d be in jail. But there’s not much that you can do, other than alert your attorney general or the police. You’re not going to be able to track these people down or sue them; they’re just going to change phone numbers.”

“You never want to give any information or payment to them, but you can verify if certain information they have is correct,” says A.J. Stecklein, a consumer protection lawyer at Stecklein Robertson Law in Kansas City, Missouri.

“If they say to you, ‘Please give me your Social Security number or else we can’t talk to you,’ you should probably tell them to go fly a kite. If they say, ‘Is it true you live at 123 Main Street?’ you can say, ‘I am happy to receive mail there.’ What you want is for them to send you a bill. And it’s probably a good sign that it’s a scam debt collector if they refuse or if they are giving you some insanely short timeline.”

The good news is that any threats from a scam company won’t actually happen. If you never give them any money, they will stop calling. “Their whole purpose in calling is to get money, and if they know they aren’t going to get any money from you, then it’s a waste of their time,” says Taylor.

Statute of Limitations for Debt Collection

Getting in touch with an attorney if you’re faced with a questionable or harassing debt collection is a smart move. “There can be something a lawyer might see that a consumer doesn’t know about,” says Boston consumer rights attorney Kevin Crick.

For example, you may be subject to collection action against you when, in fact, the debt isn’t collectible. “There’s a six-year statute of limitations for debt in Massachusetts, during which time a creditor has to sue or try to collect. If they sue outside that period, then you have a defense to say the lawsuit should be dismissed because it’s too late.”

Getting Legal Advice from an Attorney 

“I think that good legal advice is almost exactly the same as having a good insurance policy. Nobody bats an eye at getting an insurance policy for protection. No one should bat an eye at getting legal advice for similar protection,” says Dizard. 

“Reaching out to an attorney is free, and thinking you don’t need a lawyer is one of the most expensive things you can do,” says consumer protection attorney Michael Rapp, of Rapp Law Firm in Kansas City.

“The worst thing you could do is delay calling because [consumer protection laws] all have attorneys’ fees built into them. This means attorneys are going to be taking your case completely on contingency and are likely going to be paid out of either the settlement or be paid by the debt collector at the conclusion of the case,” Rapp says.

For help taking legal action or formulating a repayment plan, visit the Super Lawyers directory to find an experienced debtor and creditor rights attorney in your area for legal advice.