| Debt Management - Fight Back Against Collection Agencies Using Forbidden Practices |
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| Written by Mark Andrade |
| Saturday, 31 July 2010 17:47 |
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Illegal and unfair tactics are often employed by collections agencies when seeking payment. Unfortunately, the uninformed are easy prey. To hold collection agencies accountable for blatantly unlawful practices, you first have to know your federally protected rights. Collection agencies who fail to follow the rules can result in court fees, fines and even license suspension. For your part, you could have your entire debt forgiven for fighting back against disallowed tactics.
Illegal and unfair tactics are often employed by collections agencies when seeking payment. Unfortunately, the uninformed are easy prey. To hold collection agencies accountable for blatantly unlawful practices, you first have to know your federally protected rights. Collection agencies who fail to follow the rules can result in court fees, fines and even license suspension. For your part, you could have your entire debt forgiven for fighting back against disallowed tactics. The law protecting consumers when facing collection agencies falls under the Fair Debt Collections Practices Act (FDCPA). Here are some of the disallowed practices to watch out for: Abuse or Torment A collection agent cannot use or threaten to use force against you, your property, or another member of your family. They are also prohibited from calling you repeatedly, not identifying themselves, listing you on a "deadbeat" list, or listing your property for sale. Communication Channels When collection agencies contact you they must do so between the hours of 8am-9pm, except if you have told them those are inconvenient times for you. They are not allowed to contact you at work at all if your work doesn't allow it. In addition, you can request they not contact you at all and they must comply, except if to notify you your case has been settled, or you are being sued. Third Parties Contacts Collection agencies are not allowed to talk to outside third parties about any aspects of your case. The exception is when they are trying to find out where you are. Then they can only ask your whereabouts and give their name. No mention of your debts or their employer can be given out. The third party cannot be contacted again unless they give permission or the agency has reason to believe they were given incomplete or false information. Collection agencies must direct all contact through your attorney, if you have retained one as long as the attorney responds to their attempts. They can only go around your attorney if you have given permission otherwise. They have the right to contact your spouse and your parents if you are a minor, unless you tell them not to in writing. Collection agencies do not have the right to harass your adult children or your parents to get you to pay, even if this happens frequently. Misleading or False Representation Collection agencies have been known to impersonate law enforcement officers or use falsified documents to intimidate people into paying. Sometimes they draft letters intending them to appear to be from a lawyer. These tactics are not allowed under the law. In addition, the facts in your case, such as how much you owe and it's legal status, cannot be misrepresented. Unless a collection agency actually plans to follow through with it, they also cannot threaten you with legal action. Outrageous Tactics Unfair or outrageous tactics cannot be used to collect your debt. Specifically, a debt collector cannot add interest or fees to the original debt, request a postdated check with the intention of threatening you with criminal prosecution, deposit a postdated check prior to the date on the check without warning, or cause you to incur further charges due to their collection efforts. Your Recourse If you have been victim of any of these types of harassment or abuse, you need to complain to the original creditor, the Federal Trade Commission, and your state Attorney General. You could have your whole debt forgiven by your original creditor in some circumstances, as they can be held liable. You could be entitled to money for damages and/or pain and suffering should you choose to sue the collection agency for their misdeeds. In some cases, punitive damages have been awarded as well for particularly bad offenses. To prevail, you will have to have documentation of ongoing abuse and at least one witness to back your claims. Knowing your rights when facing collection proceedings can help you keep from being taken advantage of. Report violations right away to hold collection agencies accountable and avoid being their next victim. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Visit our website all about Easy Personal Loans which gives practical advice to those experiencing short-term financial difficulties. It offers information on getting the Best Payday Loan, as well as tips on saving, budgeting, and other spending decisions. |