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It should come as no surprise that collection agencies have stepped up their activities in the pursuit of monies owed by consumers. However, with the increase of collection actions there has also been an increase of unsavory collection practices, many of which are unacceptable or even illegal. USA Today published an article that exposes just the tip of the questionable debt collection practices iceberg. That article gives a glimpse of what consumers who are delinquent in payment are facing, and what they can do about improper collections practices.According to USA Today, "Complaints against debt collectors, after plunging in 2005, are rising again, the Council of Better Business Bureaus says. Complaints surged 20% in 2006 and 26% in 2007, according to the BBB's preliminary figures. And the Federal Trade Commission, which receives more complaints about debt collectors than about any other industry, says it's seen a steady rise in complaints against debt collectors." Debtors need to be made aware that they have specific protections that are provided by law. I'll tell you where to get started.
Your first defense against unacceptable collections practices is to become informed about what the law says collections agencies can or cannot do. For instance, did you know that debt collectors are prohibited from calling you at your place of work if they are informed that your employer does not allow such communications? They also must stop calling you at home if you request it in writing. Debt collectors cannot lie to you about material facts when attempting to collect a debt and they cannot threaten you with action outside of legal process.
Smart consumers can begin to protect themselves by reading the Fair Debt Collection Practices Act. This law provides a clearly defined set of rules that collections agencies must adhere to. Violations of this law can carry heavy consequences for bill collectors, up to and including dismissal of the debt and payment of damages. I also urge consumers who feel that they are being treated unfairly or illegally by debt collectors to contact their state Attorney General and the Better Business Bureau. It's bad enough if consumers temporarily can't pay their bills. They don't need unjustified harassment while trying to get back on their feet again.
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Reader Comments (Page 1 of 1)
5-20-2008 @ 1:24AM
Michael said...
What rights does one have that does not have a debt, but is being harassed by bill collectors? I've had my phone number for over 5 years and the person before me must have left a lot of creditors high and dry. Some stop calling when I tell them they don't live at that number, others think I'm lying.
5-19-2008 @ 10:07PM
A J said...
I just had the same problem. Took me months to get them to stop calling me. Told them to confirm the phone number before they call it!
5-19-2008 @ 10:29PM
Mary said...
You can also contact the Office of Thrift Supervision which was left out of the story.
5-20-2008 @ 1:56AM
Gary E. Sattler said...
In response to Michael:
I cannot find specific language in the Fair Debt Collections Practices Act which covers phone calls to non-debtor consumers. However, subsections 804 through 806 deal with telephone communications. Collections agents are specifically precluded from engaging in telephone harassment. Your situation may fall under those subsections and may possibly be legally actionable under the act.
The simplest route to stopping those phone calls might be to send written notice to the collection agencies involved that you are not the debtor they are seeking and that you request that your phone number be removed from their records. If the phone calls continue, harassment might then be established.
Note: I am not an attorney and this is not intended as legal advice.
5-20-2008 @ 7:17AM
Michelle Dunn said...
In response to Michael, I would send them a certified letter telling them you are not the person they are looking for and to stop calling (Your number) and carbon copy that letter to your Attorney Generals Office and/or the Better Business Bureau in your area. As a last resort you could also change your number.
Michelle Dunn
www.MichelleDunn.com
5-20-2008 @ 1:00PM
Gary E. Sattler said...
Thanks, Michelle!
8-29-2008 @ 12:17AM
michelle said...
i am a bill collector who actually follows the fdcpa and i want to let you all know if you dont want bill collectors calling you be responcible for your own actions pay tour debts we have all had financial problems but there are options available to help you resolve your debts stop hiding behind your children and having co workers screen phone calls enter into a partial payment arrangement and stick to it instead of applying for more credit it doesnt go away