Creditor Harassment: FDCPA Laws, Stop creditors calls, Sample letters & Call Logs, FAQs, Terminologies

As a bad debt grows, debt collection agencies seem to exert more and more pressure on the debtors in the form of creditor harassment. Although debt collection is legal, harassment by collection agencies is not! The FDCPA laws are like the cool shades that shelter the customers’ rights and offers protection to illegal debt collection tactics. There are various types of harassment that the creditors impose on the debtors:

1. Debt collectors threaten to hurt.
2. They come to damage any personal property.
3. They use obscene language over the phone.
4. They threaten to put the customer behind the bars.
5. They make disturbing calls at your workplace.

It is possible for the consumers to get a counseling from their state attorneys regarding their rights. To get a fair view of consumer rights and creditor harassment one can check the following links as well;

1. Fair Debt Collection Practices Act (FDCPA)
2. Harassing calls from the creditors
3. FAQ’S regarding creditor harassment and customer rights

There are two different types of creditor harassment laws; the federal laws and the state laws. The federal laws are for ALL citizens, while the state laws are only for the citizens of that particular state. If both the laws are taken into account it’s the state law that is more effective.

Although there are laws to protect the rights of the consumers yet the best thing preferred would be to consult an experienced attorney in your state to keep everything in place, so that there is no risk of being caught in the nets of creditor harassment. An experienced attorney can safeguard the rights and keep the consumers updated with the facts and circumstances which would prove to be very effective in times of need.

Creditor Harassment – Fair Debt Collection Practices Act (FDCPA)

The Fair debt practices act is a body of law that shelters the rights of the people from being harassed by the creditors. It ensures that all consumers get an opportunity of getting a chance of paying back their debts in an organized manner rather than getting threats over the phone, or being falsely accused. The FDCPA is designed in such a way that it can fight back the abusive creditors and if required can also put a penalty on them which might even count up to $1000.

There are certain ways by which creditors can possibly harass the debtors:

Utilizing unfair practices in collection of debt

• There are situations where the debt collectors may charge more than the original amount.
• The debt collectors may ask the consumers to incur certain extra financial charges.
• The debt collectors may threaten to damage personal property.
• Unfair or outrageous collection activities are practiced by the debt collectors.

Harassment or abuse

• The debt collectors may use criminal means to extract the amount from the debtors.
• Usage of obscene or profane language over the phone.
• The debt collectors often hide their identity.
• The conduct of the debt collector is abusive and oppressive.

Communication with the consumers and others

• At times even after knowing that there is a limitation on time, the creditors call up the debtors during odd hours.
• In spite of being aware that the settlement is being represented by an attorney, the creditors do not stop calling the debtors.
• Even after asking the creditors to cease all communication with the debtors, the creditors still continue to communicate with the debtors.
• The debt collector communicates with the neighbors, friends, and publicizes and confronts the debt allegedly, and threatens to collect the debt from them.

Notice Violation

• The creditor sends a letter to the debtor addressing him as dead beat which means someone who has no money to pay for his credit cards.
• The creditor sends out a collection letter which signifies a court order.

Although FDCPA offers protection toward saving the consumers’ rights there are still some limitations which may apply

• Firstly, the debt must be a consumer debt and not a business debt.
• FDCPA does not apply to original creditor.
• It is only the attorney who can suggest which law applies and when, so that he can give him the required protection as and where required.

The FDCPA has been designed in such a way that it can protect human rights against creditor harassment. If the harassment is illegal, the consumers can sue the debt collectors for any kind of damages done either to their personal property or to them. A local consumer attorney can guide the consumers as to whether the case of violation of FDCPA laws against the debt collectors is legal or not!

How to deal with Creditor Harassment?

A creditor should be informed clearly in writing that the overall awareness of the fair trading guidance notes will prevent them from further harassing, and if they continue with the same, strict action will be levied.

Creditor harassment can be dealt with in different ways as discussed under the following heads:

1. Police assistance: Police assistance by far is not very likely, as any category of prosecution is possible only with criminal or fraud acts, but as a future protection this can be kept as a store!
2. Complain to the trading standards: The trading standards will be able to access whether or not the debtor had been a victim in the hands of the creditors, and if proved to be right, then there can be a penalty or can lead to a serious implication of holding a credit license.
3. Full and final settlement to clear debts: Making a full and final settlement to the debt collection agency, by settling debts. It is known that debt settlement companies do help consumers to make settlements at a much lower percentage. This is by far the best way to avoid creditor harassment.
4. Take creditor to Small Claims Court: A debtor can sue the creditor in the small claims court if he feels that the collection agency does not validate yet contacts for collection, sends a cease and desist letter, the creditor does not report the credit history properly, or the collection agencies calls up the family, friends and neighbors, or even make calls at odd hours. Small claims court is a legal body who resolves disputes for small amounts of money generally less than $3000. Claims courts are therefore less expensive and affordable for the consumers as hiring a lawyer is not mandatory.

Creditor harassment is something very unpleasant, but there are ways and means to control, not only does a debt settlement program take care of the consumer, there are other ways like debt management, debt negotiation, and debt consolidation where consumers can get free counseling and resolve their problems effectively.

Frequently Asked Questions

A debtor can come up with several questions in regard to creditor harassment. After listening to such abusive language over the phone, they are bound to get irate and it can happen that they are not able to endure the calls any more. They often come up with different questions like

• Can the creditors call them so often?
• Can they be so rude or oppressive?
• Can they call at work place, call up their family, co-workers and neighbors?
• Can they seek for a post dated check?

As the consumers are protected by both the state laws and federal laws, there are certain limitations, if they go beyond limits, the debtors can even sue the debt collectors.

There are some [[http://www.ovlg.com/creditor-harassment/faqs.html | frequently asked questions]] and answers which would rather educate the consumers also give them a chance to find an answer to their questions:

1. Can a debt collector call the family or friends?

This right is limited as the creditors can only call to ask about the location of the debtor.

2. Can a debt collector call at any time of the day and night?

No, they can only call between 8am and 9pm, according to the FDCPA law.

3. Can a debt collector collect the debt which the debtor feels he actually does not owe?

Under the FDCPA Law the debtor can ask for the certified copy of the debt, if he feels that there is a dispute. Debt verification is an important part of FDPCA.

4. Can a debt collector call and speak to the employer?

Yes he can, but there are limitations as well. The collector can call the employer to inquire only about the location of the debtor, to inquire if there is any medical insurance to cover or to inquire about the wages. The debt collector should not reveal the reason for the call.

5. What are the different situations where FDCPA applies?

The different situations where FDCPA applies are cases when you are the actual consumer, the debt is a business debt and if there is a violation of consumer right.

6. What is a consumer debt?

Anything that is not a business debt is a [[http://www.ovlg.com/consumer-law/debt.html | consumer debt]] which includes debts like car loan, home loan, credit card, utility bills and medical bills.

7. What are some of the examples of violation of FDCPA?

Some of the examples of violation of FDCPA are unfair conduct, untrue statement and insult of the debtor.

8. What if the consumers want to discuss about debt settlement? What would be the contact number?

All consumers can call the customer service number to speak to a representative. It is a toll free number 800-530-6854.

Terminologies

There are certain terms related to creditor harassment as follows which you need to know:

ACH:

- This term stands for automated clearing house, where payments can be periodically set up for the future.

Beacon Score:

- This is another form of credit score.

Block Party:

- This is a kind of announcement where the debt collector calls up the neighbors in an attempt to collect debts, although they are forbidden for this act.

Cease and Desist letter:

- The debtor sends this type of letter to the settlement company asking them not to call them anymore for collecting debt.

Collection Agency:

- A collection agency is an organization that takes care of collecting the debts if it lies delinquent for a long time.

Consumer protection laws:

- These laws protect the rights of the individuals by encouraging them to evaluate the market better, and make decisions accordingly.

Debt Collector:

- One who takes care of collecting debts from the debtors.

FDCPA:

- It is a federal consumer protection law had helps the customers to be fairly treated by the debt collectors.

State protection laws:

- These are state laws that aims at protecting the abusive acts of the debt collectors.

Statute of Limitations [SOL]:

- This refers to the fixed period of time where a collection agency has to sue someone for a debt owned.

Helpful resources to stop collection calls

Debt collection can result in creditor harassment which is illegal. There are proper Office Of Trading (OFT) guidelines, established in the year 1973, to deal with customer protection law. The FDCPA law protects the rights of the consumers against creditor harassment. The consumers can get a consultation from their attorneys and educate themselves regarding the laws and regulation and protect their own rights. There is a requirement for an experienced attorney to keep the consumers updated with circumstances that they can face in the near future and find a resolution to it.

Police assistance: Police assistance by far is not very likely, as any category of prosecution is possible only with criminal or fraud acts, but as a future protection this can be kept as a store!

Complain to the trading standards: The trading standards will be able to access whether or not the debtor had been a victim in the hands of the creditors, and if proved to be right then there can be a penalty or can also lead to a serious implication of holding a credit license.

Full and final settlement to clear debts: Making a full and final settlement to the debt collection agency, by settling debts. It is known that debt settlement companies do help consumers to make settlements at a much lower percentage. This is by far the best way to avoid creditor harassment.

Cease and desist letter: A customer can send a cease and desist letter to the creditor stating the dispute on the validity of the debt. The customer can go ahead and ask for sufficient support on the assertions of the debt, the original copies of the application of the account, and any suitable supporting bills associated with the account, etc. The customer can ask the creditor to cease all communication with him regarding the debt and also notify the creditor not to furnish any inaccurate information, as according to the FDCPA law it is illegal and unlawful.

(1) Sample letter to verify the debt and don’t call others about the debt

Your Name
Your Address
City, State, Zip

Date:

Name of the Collection Agency
Address
City, State, Zip

Re: Acct #XXXXX

To Whom It May Concern:

This will serve as your legal notice under the federal Fair Debt Collection Practices Act (FDCPA)
to cease all communication with me in regard to the debt referenced above. Do not contact me, or 
any third parties regarding this debt.

Furthermore, I formally dispute the validity of this debt. Receipt of this formal dispute letter 
requires you to provide me with documentation that sufficiently supports your assertions that the 
above-referenced debt belongs to me and that I owe the exact amount alleged. Please send me copies 
of the original application for this account, any signatures associated with this account, any bills 
associated with this account, etc. You are also notified that should you furnish any derogatory or 
inaccurate information to any credit reporting agencies, appropriate actions will be taken pursuant 
to the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.

Thank you for your prompt attention to this matter.
Sincerely,
Your Name

(2) Sample letter to debt collectors if the debt doesn’t belong to you

Your Name 
Your Address 
City, State, Zip 

Date: 

Name of the Collection Agency 
Address 
City, State, Zip 

Re: Acct #XXXXX 

To Whom It May Concern 

This will serve as your legal notice under the federal Fair Debt Collection Practices Act (FDCPA),
to cease all communication with me in regard to the debt referenced above. Do not contact me regarding 
this debt.

Furthermore, (I do not owe this debt and have made your agent(s) aware of this fact) or (I am aware 
that you are allowed to contact me one time for purposes of obtaining location information, and that 
you have already called me more than once to do this in violation of the Fair Debt Collection Practices 
Act.) For this reason, any further attempt to contact me would be a violation of the Fair Debt Collection 
Practices Act.

You are also notified that should you furnish any derogatory or inaccurate information to any credit 
reporting agencies, appropriate actions will be taken pursuant to the Fair Credit Reporting Act and 
the Fair Debt Collection Practices Act.

Thank you for your prompt attention to this matter.
Sincerely, 
Your Name

(3) Debt collector phone communication Log

Once a customer had sent the cease and desist letter to the creditor, he must stop with the phone calls as well, consumers are given the freedom to maintain a phone communication log which is also a way of fighting against creditor harassment. This list will maintain the entire documentation of the type of calls received, any conversation that seemed to be foul or harassing should be noted, along with the person contacted. Any mails received from the collector should be saved including the envelope.