Creditor harassment occurs when debt collectors illegally collect debts. Legal procedures must be followed, and exceeding boundaries is harassment. Debtors can take legal action and should research their rights and consult an attorney. The Fair Debt Collection Practices Act grants legal remedies to victims. Misrepresentation and threatening statements are not allowed. Consulting a lawyer, sending a letter to cease contact, and paying off the debt are options. Victims should document all communication.
Creditor harassment can occur when bill collectors attempt to collect debts illegally. There are certain legal procedures that these collection agents must follow when acting on behalf of creditors, and exceeding their boundaries is generally considered harassment. Common examples can include nuisance phone calls, threatening letters, or other forms of unwanted communication. Some debtors may take legal action against creditors for illegal debt collection practices. To deal effectively with creditor harassment, a person should research their legal rights and consider consulting an attorney for advice.
Creditors and their agents have the right to attempt debt collection, but can only do so under certain rules. Abuse of this right may constitute harassment. For example, bill collectors often call people’s homes and workplaces when trying to collect debts. They might use obscenities in conversation or threaten the debtor with arrest, property damage, or some other form of personal harm. In addition to making harassing statements in a dunning letter, a bill collector might include demeaning information on the mailing envelope, such as the use of the words collected in the return address.
Several countries have laws to protect debtors’ rights. In the United States, a federal law called the Fair Debt Collection Practices Act grants some legal remedies to victims of harassment by creditors. Most phone calls and letters are considered harassing unless they contain a clear statement about their purpose of debt collection on behalf of a particular creditor.
Harassment by creditors also includes misrepresentation, such as a debt collector threatening to sue when he or she doesn’t actually intend to. Even making threatening or inflammatory statements, such as threatening to contact the debtor’s employer, is not allowed. In general, creditors have no legal right to inform a third party of your debt. Their communications, including postal envelopes, should not humiliate or intimidate debtors.
Many US states also have state laws against creditors. One option for dealing with harassment is to consult a lawyer for advice. An attorney might recommend that you send a letter to your creditor or collection agent, asking them to cease all contact with the debtor. In some cases, a debtor may be entitled to sue the creditor for damages. In states where it is legal to record a bill collector’s phone call without their knowledge, debtors can obtain proof of harassment and file a consumer complaint with the Federal Trade Commission (FTC). Another option is to pay off the debt with the creditor. In most cases, victims are usually advised to document all phone calls and save all written communications.
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