Aggressive Debt Collectors: What You Need to Know

Debt collectors can be intimidating, especially if they're aggressive. In the United States, debt collectors are regulated by the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive and deceptive practices.

You have the right to be treated fairly and respectfully by debt collectors. They can only contact you between 8am and 9pm, and must stop contacting you if you ask them to.

Aggressive debt collection is a serious issue that can have a significant impact on individuals and families. In the US, the Fair Debt Collection Practices Act (FDCPA) is in place to regulate debt collectors, but some collectors still engage in aggressive behavior.

Debt collectors are allowed to contact debtors by phone, mail, and email, but they're not supposed to harass or intimidate them. Unfortunately, some collectors ignore these rules and continue to contact debtors repeatedly, even after they've been asked to stop.

The FDCPA specifically prohibits collectors from using abusive language or making false threats to collect a debt. This includes threats of violence, lawsuits, or arrest. If a collector is making you feel threatened or scared, it's likely a sign of aggressive behavior.

Some collectors may also try to collect debts that are too old to be collected, or debts that are not theirs to collect. This can happen when a collector buys a debt from another company and doesn't do their due diligence to verify the debt's validity.

Debt collectors typically start by making several attempts to collect the debt through their in-house collection department.

They may send letters and make phone calls to try to get the debtor to pay.

If the debt is still unpaid, the credit card issuer may send the account to a third-party collection agency.

The collection agency will then send a letter to the debtor advising them that they are now responsible for collecting on the account.

The agency may get a fee or a percentage of the outstanding balance if they are successful in collecting the debt.

Jesse owes ABC Bank $15,000 on a credit card, which they've missed six months' worth of payments on.

The credit card issuer makes several attempts to try to collect on the arrears through its in-house collection department.

After the last attempt, the bank closes the card and sends Jesse's account to a third-party collection agency to assume collection activity.

The collection agency sends a letter to Jesse advising them that it is now responsible for collecting on the account.

The agency may send letters and attempt to collect the debt by contacting Jesse over the phone.

If the activity is successful, the agency may get a fee or a percentage of the outstanding balance.

Debt settlement may not be the best option, as it often leads to badly damaged credit, new interest charges, and late fees. Debt settlement requires you to withhold money from your creditors, in hopes that they'll accept a small, lump-sum offer as payment in full.

You could be sending monthly payments to a debt settlement agency for as long as 2-3 years. This strategy occasionally results in having some debt forgiven, but it's not a reliable outcome.

It can even put you at greater risk of being sued, which is a serious consequence to consider. Debt settlement may sound too good to be true, and unfortunately, it usually is.

The Fair Debt Collection Practices Act (FDCPA) and Fair Practices Act are two laws that protect consumers from aggressive debt collectors. The FDCPA applies only to consumer debts, such as mortgages, credit cards, car loans, student loans, and medical bills.

You have the right to sue a collector in a state or federal court within one year from the date the law was alleged to be violated. If you can prove damages, a judge can order the collector to pay to cover the damages, or even up to $1,000 if you can't prove actual damages.

Debt collector harassment is a serious issue, and the FDCPA makes it illegal for collectors to use obscene language or threaten to arrest you or commit violence. They also can't contact you at work if you tell them your employer disapproves, or call you more than seven times in seven days.

Here are some examples of debt collector harassment that are prohibited by the FDCPA:

If you believe a debt collector has violated the law, you can complain to law enforcement, such as your state attorney general's office, the Federal Trade Commission, or the federal Consumer Financial Protection Bureau.

The Fair Practices Act and FDCPA can be a bit confusing, but let's break it down. The Fair Debt Collection Practices Act applies only to consumer debts.

If you have a business loan or debt, it's not covered by the FDCPA. Consumer debts include things like mortgages, credit cards, car loans, student loans, and medical bills.

If you believe a debt collector has violated the law, you have the right to take action. You can sue a collector in a state or federal court within one year from the date the law was alleged to be violated.

To prove a violation, you can keep records of phone calls, voicemails, text messages, and letters. A log of these communications can be persuasive evidence to a judge or jury, showing a pattern of behavior.

You can also recover damages if you've suffered losses due to illegal collection practices. If you can't prove actual damages, a judge can still order the debt collector to pay you up to $1,000.

A group of people can also sue as a class and potentially recover as much as $500,000 or 1% of the collector's net worth, whichever is lower.

To determine your individual rights under state law, it's essential to reach out to your state attorney general's office before pursuing legal action against a debt collector.

Here are some key points to keep in mind:

Debt collectors are regulated under the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive, unfair, or deceptive practices during the collection process.

Debt collectors can only contact you between 8 a.m. and 9 p.m., and they're not allowed to contact you at work if you're not permitted to take personal phone calls. They can't call more than seven times within a seven-day period.

You have the right to send a cease-and-desist letter to stop the phone calls altogether. It's best to send it via certified mail with verification requested that the letter was received.

Here are some key rules for debt collectors:

If you think a debt collector has broken the law, you can report them to the FTC, CFPB, and your state attorney general's office.

Debt collectors are regulated under the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive, unfair, or deceptive practices during the collection process.

Debt collectors can only contact you between 8 a.m. and 9 p.m., and they cannot contact you at your workplace if you're not allowed to take personal phone calls.

If you want to stop the phone calls altogether, you must send a cease-and-desist letter to the collection agency via certified mail with verification requested that the letter was received.

Debt collectors can only contact third parties (such as family members, friends, or neighbors) once, and they are prohibited from discussing your debt with them.

Here are some specific rules for debt collectors:

If you hire a lawyer, the collector must contact the attorney and not you, and they can only contact other people to discover your address and phone number, or to find out where you work.

Debt collectors may report a debt to the credit bureaus after contacting the debtor about it. This can have a negative effect on the individual's credit score.

A delinquent debt can remain on credit reports for up to seven years. This can be a significant burden for individuals trying to manage their finances.

The debt may be reflected on the person's credit report under the name of the original creditor. This can make it harder to get approved for loans or credit in the future.

A large portion of a credit score is based on payment history. Missing payments or having debt reported to credit bureaus can lower this score.

Ignoring debt collectors can make the situation worse, as they might add interest charges or even sue you.

You can't ignore debt collectors and hope they go away, as 121,700 complaints were filed with the Consumer Financial Protection Bureau in 2021 about debt collectors.

A debt collector might add interest charges to your balance if you don't answer calls or open letters regarding the account.

In 2021, the top complaints about debt collectors were about attempts to collect debt that the consumer didn't owe, and inappropriate communication.

You can advocate for yourself and put an end to intimidating calls by getting as much information as you can about the debt without providing any personal information or acknowledging that the debt is yours.

If a collector reaches out, don't give them any information, and don't acknowledge the debt.

You have the right to tell a debt collector it's forbidden to contact you at work and stop them from making the calls.

To inform a debt collector that calls are forbidden at your work, notify them in writing.

Debt collection practices are under scrutiny, and it's essential to review your business's debt collection processes to ensure compliance with federal consumer protection laws, including the FDCPA and Fair Credit Reporting Act.

Companies involved in debt collection should closely examine their practices to avoid potential issues. This includes debt collectors, healthcare providers, payments products providers, landlords, and property managers.

Regular review and update of compliance programs is crucial in accordance with applicable law, CFPB and other regulatory agency guidance, and enforcement actions that may impact debt collection activities.

Debt collectors and businesses involved in debt collection should ensure they are in full compliance with federal and state debt collection laws to avoid potential consequences.