How Do I Stop Debt Collection Abuse?

Use these links to jump to different sections:

• Federal and State Laws Protect Consumers from Debt Collection Harassment
• What Activities Are Considered Debt Collector Harassment? 
• Debt Collectors Must Send You a Written Notice
• How Do I Stop Harassing Debt Collector Contact?
• Does Reporting Harassment Eliminate My Debt?
• Getting Legal Advice from an Attorney

Owing money to a business or lender and struggling to make payments is stressful enough. Harassing phone calls from a debt collection agency takes a bad situation and makes 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 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 the Consumer Act. It doesn’t apply to every situation, but it’s what I could call a trap for the unwary.” 

The federal Fair Debt Collection Practices Act (FDCPA) protects consumers from harassment from debt collection agencies. The FDCPA covers 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. 

What Activities Are Considered 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 called a validation notice and 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 they answer 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. You can look at this sample letter for phrasing and information to include. 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. 

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. 

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. 

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. To learn more about this legal area, see our overviews of creditor and debtor rights and consumer law.