When you are experiencing a financial crisis and you are unable to pay your bills, debt collectors often make the stress, frustration and anxiety much worse. Threatening and harassing letters, as well as non-stop telephone calls, increase the stress of not having enough money to pay your bills. However, debt collectors love to use these tactics to intimidate individuals into paying debts that they cannot afford to pay. In many cases, in order to get the debt collector to stop calling, individuals will go into further debt or sell assets to make a partial payment.
Unfortunately, debt collectors use these tactics to get whatever money they can from the individual with the promise of "working with the individual" on the remaining balance. However, the debt collector simply begins harassing the individual the next week (sometimes the next day) for the remaining balance. While debt collectors do have the right to contact individuals in an attempt to collect a valid debt, individuals are protected by the Fair Debt Collections Practices Act (FDCPA) against unfair trade practices and creditor harassment.
The FDCPA is designed to protect consumers from creditor harassment by prohibiting debt collectors from taking certain actions to collect a debt. The law limits the actions of debt collectors to prevent a debt collector from harassing, threatening or using unfair practices to abuse or frighten an individual. There are horror stories of debt collectors coming to the homes of individuals and taking pictures of their home, their cars and even their children playing in the yard. Banging on the door and yelling at the consumer is exactly the type of action that the FDCPA is designed to prevent.
Creditor harassment is a serious problem that affects many consumers in the United States each day. Congress enacted the FDCPA to protect consumers from debt collectors' abuse by prohibiting debt collectors from taking the following actions in their attempts to collect a debt:
If you are the victim of creditor harassment, there are steps that you can take to stop it:
1. File a complaint. You can file a complaint with the Federal Trade Commission, the Consumer Protection Bureau or your state’s Attorney General’s office. This does not release your liability for the debt; however, the agency should investigate the harassment.
2. Send a written letter. Send a written letter by certified mail (return receipt requested) to the debt collector, disputing the debt and demanding proof of the alleged debt. The debt collector can only contact you under two circumstances after they receive your letter: the debt collector can contact you to tell you that they will not contact you again, or to inform you that they or the creditor will be pursuing legal action. Again, this does not absolve you of the legal liability to repay a valid debt.
3. File a lawsuit. Contact an attorney to file a lawsuit under the FDCPA. You have one year from the date of the violation to file a lawsuit under the Act.
4. File for bankruptcy. You may be eligible to file a bankruptcy case. Upon the filing of the bankruptcy case, creditors and debt collectors are prohibited from contacting you to collect this debt. Upon completion of the bankruptcy, the debt will be discharged and the creditor may not contact you any further regarding this debt.
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Creditor harassment is serious. You have legal rights to protect you against threats, harassment and abusive tactics by debt collectors. If you are the victim of creditor harassment, you should contact an attorney to discuss your legal options.