How to Get Rid of That Debt Collection Bully

The law prohibits telephone harassment by debt collectors.

Consumers who fall behind on bills or loans may hear from a debt-collection agency. Some debt collectors try bullying to get consumers to pay bills. The Fair Debt Collection Practices Act and other laws prohibit certain actions by a debt collector. Learn these prohibited collection tactics and how to use the laws to get rid of a debt-collection bully.

Things You'll Need

• Paper
• Pen
• Envelope

Instructions

1. Access the Federal Trade Commission (FTC) "Facts for Consumers" page on debt collection to review the many kinds of prohibited debt-collection practices. These include multiple kinds of harassment, false statements and warnings. For example, the fair practices law bars threats of violence or harm, repeated phone harassment, the publication of your name on debtor lists, and profane or obscene language. The prohibitions also apply if a debt collector contacts your family members, boss or other third parties. Familiarity with the law can help you give specific warnings to get rid of a bullying debt collector.

2. Tell the debt collector you do not want phone calls at work. According to the FTC, you can give an oral notice to stop contacting you at work. However, you should also include such a demand in any written notice to a debt-collection bully who is harassing you to pay. Also give a warning if a debt collector calls you between 9 p.m. and 8 a.m. Calls during that period are prohibited without your permission.

3. Give a written demand to stop contact. A debt collector must stop all harassing phone calls and other contact if you provide a written demand. The law does not specify exactly what you should say in the letter; just make it clear that you want no further contact from the debt collector. Make a copy of the letter and send it by certified mail with a return receipt. The receipt shows that you sent a no-contact warning. A collector must stop contacting you at that point except to give notice that there will be no further contact or to give you notice that the collector or creditor intends to sue you or take other legal action.

4. Speak to a lawyer. You may file a lawsuit against a debt collector in state or federal court up to one year after the bullying incident. The suit not only may stop the bullying, but is also can enable you to recover money damages for the past illegal actions. In addition to actual damages, such as lost wages due to harassing calls at work, you may recover $1,000 plus your attorney's fees and court costs. In class-action lawsuits, you and the other plaintiffs may recover $500,000 or 1 percent of the debt collector's net worth, whatever is less.

Tips & Warnings

• Find out about additional laws on debt collection at the state level. Some states prohibit other kinds of collection tactics. The FTC recommends that you get information or file complaints with your state attorney general.

• The FTC also processes consumer complaints. You can use the "FTC Complaint Assistant" page to file a complaint about debt collectors (see Resources).

• You will still be liable for any debts you owe even if a debt collector violates the law. Consider settling a debt before resorting to legal action. In some cases, a creditor may accept less than you owe.

References

• Federal Trade Commission: Facts for Consumers

Resources

• Federal Trade Commission: FTC Complaint Assistant