Holding debt can be stressful, especially for anyone struggling to pay. Although collectors must follow a clear set of rules and regulations, they sometimes violate them regardless.
Those who engage in illegal debt collection practices must change tactics or face the consequences.
Harassment
Debt collectors cannot abuse borrowers. They may never use threats, spout obscene language or repeatedly call to annoy someone. Consumers have an inherent right to respect and dignity.
Discussing the details with others
Talking about a consumer’s debt with third parties is never allowable. Sharing privileged information with anyone distinctly violates the borrower’s privacy.
Deceptive statements
When collection agencies get in touch, they must provide accurate information. It is illegal to lie about the amount owed, pretend to be someone or falsely claim to represent a government agency.
Unfair practices
Collectors may not charge additional fees or interest outside of the original contract. Seizing or threatening to take property without the right to do so is against the law.
Intimidating with threats
While debt collectors may assume legal action, they cannot threaten to sue or garnish wages unless they intend to do so. They must also have the legal authority to take these actions.
Calling at inappropriate times
There are specific rules about when collection agencies can make contact. They may not call before 8 a.m. or after 9 p.m. unless they have explicit permission from the debtor.
Ignoring requests to halt communication
Debtors can ask collectors to cease contacting them. Once an appeal is complete, the agency must stand down.
People should live free from unfair debt collection practices. When dealing with such activity, informing the correct authorities is a proper decision.