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The Fair Debt Collections Practices Act limits the tactics used by debt collectors, so if you feel helpless when dealing with them, know that you have options.
Here are five things third-party debt collectors, or those who pursue collection on behalf of another creditor, are not allowed to do and five things they are allowed to do.
Can Debt Collectors Call You at Work?
Debt collectors are restricted in their communication methods and timing by the federal Fair Debt Collection Practices Act (FDCPA). Debt collectors are legally permitted to call you at work, but they have to abide by your request for them to stop.
Tell the debt collector that you are not permitted to take personal calls at work and request that they not call you again if you receive a debt collection call while you are at work. It’s also a good idea to follow up with a cease and desist letter because it can be difficult to prove you told them not to call. Keep a copy of the letter for your records.
You have the right to sue the debt collector if they continue to harass you or if they break the law in any other way. You might be eligible to receive actual damages, statutory damages up to $1,000, legal fees, and any additional court costs if you can demonstrate that the debt collector violated the law.
Can the Original Creditor Call You at Work?
Yes, but once more, you can request that they not call you at work.
However, it’s crucial to understand that the laws pertaining to original creditors and third-party debt collectors differ.
The company that first gave you a loan or extended credit is known as your original creditor. Stated differently, the party to whom you initially owed money, like a bank or credit card company, is known as the original creditor. This could be a hospital, physician’s office, or specialist’s office in the event of medical bills.
The only two parties to the debt at first were you and the original creditor. A “third party” debt collector is the person who takes over debt collection from the original creditor. Debt collectors frequently work for debt collection agencies to pursue unpaid debts that the original creditor wrote off after they were unable to collect the full amount over time.
Third-party debt collectors are forbidden under the FDCPA from calling you at your place of employment after you tell them not to. Original creditors are not typically subject to the FDCPA. That doesn’t mean original creditors can do whatever they want. You can (and should!) ask them not to call you at work if that’s a problem for you. Even original creditors are barred from harassment under the Federal Trade Commission Act.
If you feel like an original creditor is harassing you at work, you can file a complaint with the Federal Trade Commission (FTC). This is the federal agency that helps protect consumers from abusive, unfair, or deceptive practices. Though you can file an FTC complaint against an original creditor, you can’t sue them directly for violating the FTC Act.
Illegal Debt Collection Tactics: Know Your Rights
Debt collectors are notorious for their persistence. They’ll try a variety of strategies to get you to settle an outstanding debt. The FDCPA permits some of these strategies and prohibits others. To safeguard your rights, it’s critical to understand which actions are allowed and which are not.
Under the FDCPA, third-party debt collectors aren’t allowed to:
- Publicize your debt. This implies that a collector cannot visit your place of business because doing so would notify your colleagues of your debt.
- Call you at certain times. They generally aren’t permitted to call you before 8 a. m. or after 9 p. m. local time.
- Message you following your request to be removed from their contact list. This request may be made over the phone or in writing. Although the contact should end as a result, your debt will still remain.
- Harass you. Making frequent calls, disclosing any information regarding your debt to the public, using derogatory language, and threatening violence are examples of harassment.
- Try to collect debt that you don’t owe. Due to the frequent buying and selling of debts, debt collectors may possess inaccurate information regarding the debtor or the amount owed.
- Place you under arrest or threaten to do so. That being said, the court may order you to appear if the collector files a lawsuit against you. Should you fail to appear for these required court appearances, the court may issue an arrest warrant.
You can report a debt collector who employs any of these strategies to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) for breaking federal debt collection laws. In the event that the collection agency has also broken state law, your state attorney general’s office might be of additional assistance. Lastly, if you need legal advice, you can also get in touch with an attorney. If necessary, a lawyer can assist you in understanding your rights and addressing the matter in court. Many attorneys offer free consultations.
What Can Debt Collectors Do?
Debt collectors are legally allowed to do a lot of things, but many collection practices are prohibited.
- Debt collectors can contact you in several ways. They are not allowed to threaten you or mislead you, but they are allowed to call you on a daily basis, write you letters, connect with you on social media, and threaten legal action if they are legally permitted to do so and intend to do so.
- Debt collectors may try to collect on an expired debt. There is a statute of limitations for credit card debt, medical bills, utility bills, and other consumer debt. This sets a deadline for creditors and debt collectors to file a lawsuit to recoup the debt. Debt collectors may still get in touch with you in an attempt to collect the debt even though you cannot be sued for it after the deadline has passed.
- Debt collectors can sue you to collect a debt. It’s crucial to respond to a debt collector’s lawsuit and appear in person at any hearings if one is filed against you. This gives you the opportunity to raise any defenses you may have and force the debt collector to produce proof of your debt. You could be sued by a debt collector even after the statute of limitations has passed. It is your responsibility to reply to the lawsuit in this instance and inform the court that the deadline has passed. Should you lose the lawsuit, the creditor could obtain a court order authorizing a bank levy or wage garnishment.
- Debt collectors can sell your debt. A debt collector may decide to sell your debt to a debt buyer if they are unable to collect all or a portion of it. For this reason, before taking any further action, you should request a debt validation letter from the debt collector if they get in touch with you.
- Debt collectors can report unpaid debt to the credit bureaus. This will negatively impact your credit score and appear on your credit report. The debt collector has to get in touch with you regarding the debt before reaching out to a credit reporting agency.
What Can You Do if You Can’t Pay the Debt?
While it won’t make the debt disappear, asking a debt collector to stop calling you at home or at work can help ease your anxiety about outstanding bills you are aware you owe. Remember that the next time you ask a debt collector to stop contacting you. If a debt collector is unable to get in touch with you, they may believe that suing you is their only choice.
The good news is that you can choose from a number of debt relief strategies to help you pay off your debt and permanently stop receiving collection calls. A nonprofit credit counselor can provide a free consultation, which is a great place to start. Credit counselors can assist you in selecting the best type of debt relief by examining your debt, goals, and budget. Additionally, you can attempt to directly negotiate a debt settlement with the collection agency.
Finally, you may want to think about filing for bankruptcy if you’re drowning in debt and don’t see a way out. Bankruptcy has its pros and cons, so do your homework. You will receive immediate relief from collection calls and other collection activities once you file your case with the court if you determine that filing for bankruptcy is the best course of action for you. Written By:
Having a fantastic group of bankruptcy lawyers, financial experts, and consumer rights advocates on staff allows Upsolve to maintain current, educational, and user-friendly content.
With fifteen years of experience successfully defending debtors in Chapter 7, Chapter 11, and Chapter 13 cases, Paige Hooper is an accomplished consumer bankruptcy lawyer. In 2006, Paige started practicing bankruptcy law. In 2012, she established her own solo bankruptcy practice serving multiple states. Gi. read more about Attorney Paige Hooper.
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FAQ
Do debt collectors know where you work?
A collection agency can obtain a variety of personal data, including your address, phone number, employment history, and credit history, if it is connected to a credit reporting agency.
What is the 11 word phrase to stop debt collectors?
If debt and debt collectors are causing you trouble, Farmer When you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to put an end to the harassment, give us a call to discuss your options for permanently resolving your debt issues.
Is it legal for a debt collector to call you at work?
In summary, debt collectors may contact you at work unless and until you request that they cease. If debt collectors or creditors have reason to believe that a borrower’s employer forbids these types of calls, they are legally forbidden from contacting the borrower at work.
How many calls is considered harassment?
When someone doesn’t want to be called, even one or two calls can be deemed harassment. The question is: How much calling is considered harassment?
Read More :
https://upsolve.org/learn/debt-collector-calling-work/
https://www.nerdwallet.com/article/finance/things-debt-collectors-cannot-do