subject: Forbidden Practices Often Used By Collection Agencies [print this page] Illegal and unfair tactics are often employed by collections agencies when seeking payment. Unfortunately, the uninformed are easy prey. To hold collection agencies accountable for blatantly unlawful practices, you first have to know your federally protected rights. Collection agencies who fail to follow the rules can result in court fees, fines and even license suspension. For your part, you could have your entire debt forgiven for fighting back against forbidden tactics.
Individuals facing collection proceeding have federally protected rights under the Fair Debt Collections Practices Act (FDCPA). Some of the specific provisions provided include:
Abuse and Harassment
The law bans any form of harassment, violence, or abuse against you, your property, or members of your family. Such restrictions include making repeated calls when you've asked them not to, using profanity or vulgar language, or threatening actions they may or may not plan to take. Adding your name to a "deadbeat list" or listing your property for sale is also prohibited.
Contacting You
Direct communication from collection agencies is limited to reasonable hours. Generally that means between the hours of about 8am-9pm, unless you inform them those are not good times for you. They are prohibited from contacting you at work, if it's not allowed. Most importantly, if you request it, all contact must stop entirely, unless it involves notification of either a settlement or that you are being sued.
Third Parties Contacts
A collection agent cannot contact others about your case, except to locate you, with few exceptions. When doing so they must only identify themselves and ask where you are. They cannot give their employer's name unless asked, tell others about your debt, or contact the person again unless they either give permission or the agent has reason to believe they gave false or incomplete information.
Collection agencies must direct all contact through your attorney, if you have retained one as long as the attorney responds to their attempts. They can only go around your attorney if you have given permission otherwise. They have the right to contact your spouse and your parents if you are a minor, unless you tell them not to in writing. Collection agencies do not have the right to harass your adult children or your parents to get you to pay, even if this happens frequently.
False or Misleading Representation
Collection agencies have been known to impersonate law enforcement officers or use falsified documents to intimidate people into paying. Sometimes they draft letters intending them to appear to be from a lawyer. These tactics are not allowed under the law. In addition, the facts in your case, such as how much you owe and it's legal status, cannot be misrepresented. Unless a collection agency actually plans to follow through with it, they also cannot threaten you with legal action.
Unfair Practices
Unfair or outrageous tactics cannot be used to collect your debt. Specifically, a debt collector cannot add interest or fees to the original debt, request a postdated check with the intention of threatening you with criminal prosecution, deposit a postdated check prior to the date on the check without warning, or cause you to incur further charges due to their collection efforts.
Your Options
You should direct complaints to the Federal Trade Commission, your state Attorney General's office, and your original creditor if you have been the victim of these types of practices. First contact your original creditor who can be held liable for such violations. They may consider forgiving your entire debt if the actions were especially grievous.
Another potential recourse is to sue the collection agency for these types of violations. You must document your claims and have at least one witness. In the past, some plaintiffs have been awarded damages and/or money for pain and suffering. Particularly bad cases of repeated abuse have resulted in punitive damages as well.
Let the law back you up when you are brought face-to-face with a debt collector. Knowing your rights can help you keep their tactics within the law.
Forbidden Practices Often Used By Collection Agencies
