Being contacted by a debt collector can be stressful, especially because not all debt collection tactics are lawful or just. There are certain things that debt collectors can’t do, and knowing about them can help you to protect your consumer rights.
In the U.S., the federal Fair Debt Collection Practices Act protects consumers against unfair and illegal debt-collection methods, such as harassment and abuse. You also have the right to seek legal guidance for debt collection.
On ContractsCounsel, an online legal network that connects you with vetted lawyers, you can hire a lawyer if you’re the victim of unjust debt collection. They’ll help you deal with the process and any disputes that arise.
Read the rest of this article to learn more about debt collection, common types of illegal debt collection, and actionable steps you can take when finding yourself in debt.
What are Illegal Debt Collection Tactics?
Just because some debt collection tactics are common, it doesn’t mean they’re always on the right side of the law. Even if you do owe money to a creditor, debt collectors aren’t allowed to use any type of strategy to get you to pay. Here are some examples of misconduct.
Debt Collectors Threaten Jail Time
This is a common scare tactic to try to get you to pay the debt. If you find yourself on the receiving end of it, don’t be bullied. You can’t be put in jail for not paying your debts, so request a written verification of the debt and report the debt collector to the Consumer Financial Protection Bureau (CFPB).
Debt Collectors Communicate with Your Boss or Family
It’s completely out of line for a debt collector to speak to other people in your workplace or family about the debts you owe. You should deal with the privacy violation by reporting the debt collector. Keep a written record of all communications you and others have received from the debt collector.
Debt Collectors Create Fake Penalties or Interest
Some debt collectors might make up additional amounts of money you owe, pretending that you’re forced to pay them. In some cases, they could try to collect money on debts that have previously been settled.
It’s essential to ask the debt collector for a debt validation letter that explains the debt. Send them a formal letter requesting information and they’ll send you proof of your debt, such as the amount owing, payment history, and more.
They’re obligated to send this to you upon your request. It will help you see if the debt is valid or not before you pay it.
Debt Collectors Don’t Provide Information
According to federal law, you have the right to know about details concerning the debt and what company the debt collector is from. It’s always a red flag if the debt collector doesn’t disclose this information.
What Should You Do During Debt Collection Disputes?
If you disagree with the debt you’re owed, there are some important things you should do.
Write Everything Down
Keep track of all communications with the debt collector, including any letters they’ve sent you. This is a good way of gathering evidence to show that the debt collector’s tactics are offensive or to prove that you don’t owe the money.
Within five days after contacting you about the debt for the first time, a debt collector has to send you a written notice informing you of how much money you owe and the name of the original creditor.
Report Violations
Don’t ignore an unlawful debt collector. You can file a complaint against them with the CFPB and your state’s attorney general.
Don’t Pay Illegal Debt Collectors
When in doubt, request debt validation instead of paying the money immediately.If a debt collector is legal, they will provide information about themselves and validation notices. They will never expect you to pay immediately or threaten you with legal action.
Dispute the Request
You can dispute the debt request. According to the Fair Debt Collection Practices Act, this request must be in writing and you should send it within 30 days of receiving a validation notice. The letter must be sent via certified mail.
Consider Sending a Cease and Desist Letter
In some cases, you might wish to send the debt collector a cease and desist letter, such as if they’re harassing you. This document tells them to stop their offensive behavior. However, it’s worth remembering that this letter won’t remove the debt if it’s valid and owing.
On Contracts Counsel, you can post a project for free, requesting that a lawyer drafts your cease and desist letter. You’ll receive multiple lawyer bids, from which you can choose a lawyer to work with. This ensures that your letter is written in a legal, reasonable way.
Should You Contact a Lawyer for Debt Collection and Disputes?
It can be stressful to deal with debt collection, especially if you’re unsure of how to navigate the process or you’re worried about the collector’s threats. These situations can cause you to react emotionally, which could make the situation worse.
There are many advantages to contacting a lawyer to help you with debt collection.
- Lawyers have extensive legal knowledge. They know what debt collectors are and aren’t allowed to do, and can remind you of your legal rights.
- Lawyers can recover debts. They’ll use their years of experience and expertise to help you regain your financial losses.
- Lawyers can draft important documents correctly and so that they’re legally enforceable, such as cease and desist letters.
- Lawyers can negotiate with creditors or debt collectors on your behalf.
- Lawyers can keep your debt collection dispute out of court. With their early negotiation, professionalism, and thorough understanding of the situation, they could prevent lawsuits.
How Can You Resolve the Debt?
If your debt is valid and you need to resolve it, it will be your responsibility to do so. This isn’t always easy, especially if you don’t have the funds. Hiring a lawyer can help you to negotiate with creditors so that you can pay the debt off, such as with monthly payments.
You should always keep any negotiations and agreements in writing so that there are no misunderstandings in future.
Do you need a lawyer for a debt collection concern?
Reach out to our lawyers on ContractsCounsel. All lawyers on the platform are vetted and have years of experience in assisting clients with debt collection issues, such as corrupt debt collectors and missed payments. They’ll remind you of your legal rights while protecting your assets and reputation.
