Debt collectors must comply with federal and state laws when attempting to collect certain debts. If a collector uses threats, deception, repeated unwanted contact, or other prohibited tactics, the conduct may violate consumer protection laws. Recognizing potential violations can help you understand when collection activity may have crossed the line and what steps you can take next.
What Is Illegal Debt Collection?
Illegal debt collection occurs when a covered debt collector uses practices prohibited by applicable federal or state law. The Fair Debt Collection Practices Act (FDCPA) establishes rules for many third-party debt collectors, although its protections do not apply to every creditor or every type of debt.
The specific rules can depend on the collector, the type of debt, the communication method, and the circumstances. If you believe a collector has violated your rights, preserving records of the collection activity can help when evaluating your options.
10 Common Debt Collection Violations
Debt collection violations can take different forms. Some involve how a collector communicates with you, while others involve false statements, threats, or improper attempts to involve other people in the collection process.
1. Threatening Violence or Physical Harm
A debt collector cannot use threats of violence or physical harm to pressure you into paying a debt. Threatening language designed to frighten or intimidate you may be especially concerning when it suggests that physical consequences will follow if you do not pay.
Save any messages, voicemails, or written communications containing threatening statements. The exact circumstances can determine whether the conduct violates applicable law.
2. Threatening Arrest or Criminal Consequences
A collector generally cannot falsely threaten to have you arrested or claim that you will face criminal consequences simply because you cannot pay a consumer debt. Collectors may discuss legitimate legal collection remedies, but they cannot use fabricated criminal consequences to intimidate you.
3. Using Abusive or Obscene Language
Debt collectors are not permitted to use abusive, obscene, or profane language simply to intimidate or humiliate you. Collection communications can be firm without becoming threatening or abusive.
4. Repeatedly Calling to Harass You
Repeated collection calls may become unlawful depending on their frequency, timing, and circumstances. A collector’s ability to contact you does not give them unlimited freedom to repeatedly call in a manner intended to harass or pressure you.
Keep a call log that shows when calls occur and how frequently the collector contacts you. This can help establish a pattern of conduct if the communications become excessive.
5. Contacting Other People About Your Debt
Debt collectors face restrictions on discussing your debt with people other than you. In some circumstances, a collector may contact another person to obtain your location information, but that does not generally authorize the collector to disclose your debt or to attempt to shame you into paying.
6. Making False Statements About the Debt
A debt collector generally cannot misrepresent the amount you owe, the identity of the creditor, or other material information about the debt. False statements may also involve misleading claims about the collector’s authority or the consequences of failing to pay. If the amount claimed does not match your records, request appropriate information about the debt and preserve the communications you receive.
7. Threatening Legal Action That Is Not Permitted
Collectors may have legitimate legal remedies available, but they generally cannot make false or misleading threats about lawsuits, garnishment, property seizure, or other collection actions.
For example, claiming that a lawsuit has already been filed when no lawsuit exists may raise serious concerns. Any actual court documents should be reviewed carefully rather than relying solely on statements made by a collector over the phone.
8. Attempting to Collect a Debt You Do Not Owe
Collection mistakes can happen. A collector may contact the wrong person, pursue an account that does not belong to you, or attempt to collect an amount that is inaccurate.
Do not assume that a debt is valid simply because someone demands payment. Review the account information and preserve documents that may help establish whether the obligation belongs to you and whether the amount is accurate.
9. Failing to Provide Required Debt Information
Covered debt collectors generally have obligations regarding debt information and a consumer’s rights to dispute certain debts. If you receive collection communications but cannot determine who claims you owe the money or how much is allegedly owed, the situation may require closer review.
Keep collection letters, emails, and other communications, so you have a record of what information the collector provided.
10. Using Deceptive Collection Tactics
Deception can take many forms, including impersonating a government agency, falsely claiming to be an attorney, misrepresenting the legal status of a debt, or using misleading statements to pressure you into paying.
If a collector’s identity, authority, or statements about the debt appear suspicious, verify the information before providing payment or personal financial details.
What Is the FDCPA?
The Fair Debt Collection Practices Act is a federal law that regulates many activities involving third-party debt collectors. It addresses certain abusive, deceptive, and unfair collection practices and provides consumers with specific rights when dealing with covered collectors.
However, the FDCPA does not apply to every creditor or every collection situation. Whether a particular action violates the law depends on the collector involved, the type of debt, and the circumstances surrounding the collection activity.
What Should You Do If a Debt Collector Violates the Law?
If you believe a collector has violated the law, avoid making decisions under pressure. Preserve letters, emails, text messages, voicemails, and other communications, and keep a record of calls that includes dates, times, phone numbers, and what was discussed.
You should also review the underlying debt carefully. If the account is inaccurate, does not belong to you, or involves questionable collection activity, documenting the issue can help when determining whether to dispute the debt or pursue other legal options.
Can a Debt Collection Lawyer Help?
A debt collection lawyer can review the collector’s communications, the underlying debt, and the circumstances surrounding the collection activity. This may help determine whether the conduct could violate the FDCPA or applicable state law.
If you are dealing with persistent or abusive collection activity, creditor harassment may be one issue an attorney can evaluate. Depending on the circumstances, legal options may include communicating with the collector on your behalf, disputing the debt, negotiating a resolution, or pursuing legal action.
What If You Are Being Sued Over the Debt?
A debt collection lawsuit should not be ignored. Review the summons and complaint carefully, identify the deadline for responding, and consider your legal options before a default judgment is entered.
A judgment may provide a creditor with additional collection remedies, depending on the debt and applicable law. Responding promptly can help preserve your ability to challenge the claim, negotiate a resolution, or raise applicable defenses.
Talk to a Debt Collection Attorney Today
You do not have to handle potentially unlawful debt collection activity without understanding your rights. McCarthy Law PLC can review the debt, collection communications, and circumstances surrounding the account to help determine whether potential violations or other legal issues may exist. Contact us now to discuss your situation and available legal options.