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What Debt Collectors Cannot Do To Get a Payment

Consumers can Stop Collection Agency Harassment with FTC Information

Nov 12, 2009 Victoria Nicks

Debt collectors may use unethical practices to bully consumers into making payments. Stop collection agency harassment with information from the Federal Trade Commission.

The U.S. Federal Trade Commission (FTC) is the branch of the government that enforces the Fair Debt Collection Practices Act. This law states the various methods that are, and are not, allowed during the collection of debts. Understanding this law, and the ways in which collection agencies that break the law can be reported, helps consumers protect themselves.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act was written in the 1960's, and has since been added under the Consumer Credit Protection Act. The full text of the Fair Debt Collection Practices Act can be read online.

Check Credit Scores and Reports During Disputes

Check credit scores and reports while collections are taking place. Some collection agencies will give incorrect information to credit reporting agencies, which will result in problems with credit scores. Other unscrupulous debt collectors will identify themselves as credit reporting agencies, in an attempt to get information or threaten changes to a credit score as a result of non-payment. A vigilant consumer will be aware of changes to credit reports, and notify the appropriate authorities of threats and harassment.

Debt Collection Calls

During debt collection calls, the agency cannot harass or threaten the consumer. In addition, calls should come only during reasonable hours, and should not be intended to annoy the consumer. In order to stop the calls, consumers must send the request in writing. Collection agencies are then barred from continued contact, except in the case of notifying the consumer that the calls will not continue, or to notify of an impending legal action.

Declaring Bankruptcy

Declaring bankruptcy should also end collection calls. Simply announcing the intention to file bankruptcy, however, is not enough. Consumers who have retained a bankruptcy attorney must provide the attorney's contact information to all creditors in order to stop the attempts to collect past due payments.

Bankruptcy Lawyers and Collection Agencies

Bankruptcy lawyers are the go-between to protect consumers during the bankruptcy process. Once a bankruptcy lawyer has been retained, debt collectors must contact the attorney for all communications relating to the debt, and should not address any questions to the consumer.

Reporting Illegal Collection Activities

Consumers who believe that their rights have been violated, or that debt collection policies have been broken, should report the collection agency to their local Attorney General's office, and the U.S. Federal Trade Commission. Each state has different debt collection laws, and a state Attorney General can provide individualized information for consumers of that state.

References:

U.S. Federal Trade Commission

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