Debt Collector Harassment Laws

Debt collection harassment occurs when a debt collector harasses, oppresses, or abuses a debtor. Debt collection laws prohibit debt collectors from harassing debtors. These laws are enforced by government agencies. 

What is the Fair Debt Collection Practice Act?

The Fair Debt Collection Practice Act (FDCPA) is enforced by the Federal Trade Commission (FTC). It prohibits debt collectors from engaging in deceptive, abusive, or unfair practices when they are attempting to or collecting money from a debtor. The FDCPA protects individuals but not businesses. Under the provisions of the FDCPA, debt collectors are prohibited from calling an individual before 8 AM or after 9 PM in their time zone.

Pursuant to the provisions of the FDCPA, a debt collector is prohibited from:

• Contacting an individual at any inconvenient time or place, including early in the morning or late at night;
• Contacting an individual at work unless they have been given permission to do so;
• Using violence or threats;
• Publishing names of individuals who owe money;
• Repeatedly calling, harassing or annoying the individual;
• Using profane language;
• Refusing to identify themselves;
• Pretending to be a government official or a lawyer;
• Arresting the individual;
• Participating in unfair practices; or
• Revealing confidential information about debtors to third parties.

Debt collectors are also prohibited from using deceptive practices, including:

• Representing themselves as an attorney, when, in fact, they are not;
• Threatening to have an individual arrested; or
• Misleading an individual about the amount of debt they owe.

What Can I Do If a Debt Collector Harasses Me?

If an individual is being harassed by a debt collector, they should keep records of any and all phone calls, including the date and time of the calls as well as their content. In addition, any mail, emails, or text messages from a debt collector should also be kept as records.

If an individual is being harassed by a debt collector, they should instruct the debt collector to cease the harassing calls. They should also send a letter in writing to the collection company requesting the harassment to stop.

If an individual is being harassed by a debt collector, they have three options to resolve the harassment issue. They can:

• Submit a complaint to the Consumer Finance Protection Bureau (CFPB);
• Contact the attorney general for the state where the individual resides; or
• File a lawsuit under the FDCPA against the debt collector in civil court.

What is the Difference Between a Debt Collector and a Telemarketing Scam?

Telemarketing scams have been used in an attempt to separate individuals from their money or possessions for years. Many times, rumors of the new scam will circulate, such as the Internal Revenue Service (IRS) threatening to arrest individuals if they do not pay back taxes they owe. 

There are some ways to differentiate between a telemarketing scam and a debt collector. A telemarketing scam usually begins with a robotic call, but some may be calls from a live individual. They will likely refuse to tell an individual:

• About the debt the individual has;
• How much debt the individual owes;
• What the debt relates to; or
• Who is the party responsible for the debt.

If the individual who calls is unable to give any information regarding why the debt is owed, they are not a debt collector. An individual should make sure to document the name of the individual or the company that is harassing them, especially if they are not sure whether it is a debt collector or a scammer.

What Happens if I File a Lawsuit?

The victim of the harassment, or plaintiff in a lawsuit, will need to prove the debt collector violated an aspect of the FDCPA. The case proceeds like a civil trial. If the plaintiff prevails, the debt collector or debt collection company may be required to pay the plaintiff’s attorney’s fees or monetary damages.

What is the Fair Credit Reporting Act?

The Fair Credit Reporting Act (FCRA) is a federal debt collection law that protects how an individual’s credit information is shared with third parties. It provides instructions on how debt collections must be reported to the three credit bureaus. 

For example, a debt collector may violate the FCRA if they report information to the credit bureaus regarding a debtor that is false. This may include instances such as reporting a debtor is seven months behind on payments when they are actually only three months behind.

An individual’s credit history is accessed regularly by individuals or companies, such as:

• Lenders;
• Employers;
• Landlords;
• Utility companies; or
• Retailers. 

The FCRA provides individuals with several important rights, including:

• An individual’s right to see their own credit report;
• An individual’s right to know when and by whom their credit report has been accessed;
• An individual’s right to dispute inaccurate information on their report; and
• The right to know when an individual’s credit report has been used negatively against them.

There are three main nationally recognized credit bureaus:

• Equifax;
• Experian; and
• TransUnion.

Pursuant to the FCRA, these credit bureaus are required to:

• Provide a copy of an individual’s credit report upon their request;
• Investigate on an individual’s behalf information that they dispute;
• Limit access to an individual’s file; and
• Allow an individual to opt-out of prescreened credit offers.

Additionally, there are companies that collect and provide credit history information to the credit bureaus. These information collection companies are required to, among other things:

• Update any and all inaccurate information provided to any credit bureau;
• Disclose any negative information reported about an individual; and
• Have identity theft reporting and prevention procedures in place.

What are the Penalties for Violating the FCRA?

If an individual receives a copy of their credit report for any reason other than a legitimate business purpose or without an individual’s permission, the requesting party may be in violation of the FCRA. The FCRA provides that an individual may sue for damages for willful or negligent disclosure of their credit information. The aggrieved party may be able to sue for:

• Actual damages up to $1,000; 
• Reasonable costs or attorney’s fees; or 
• Punitive damages if permitted by the court.

What is in an Individual’s Credit Report?

A credit report provides information about an individual’s current and historical credit activities. All three nationwide credit bureaus discussed above have information regarding an individual’s credit activities.

Specifically, credit reports will contain an individual’s personal information, including:

• Name and nicknames;
• Social security number;
• Current and former addresses;
• Birth date;
• Phone numbers;
• Any current credit accounts; and
• Any past credit accounts.

For example, if an individual has a current mortgage and a past car loan, their credit report will show both the mortgage and the car loan. It will including information such as:

• The amount of the loan;
• Any account balances;
• Payment history;
• The creditor name; and
• Whether the account is currently open or closed.

Using this information, the credit bureaus generate a credit score. This score can help determine whether or not an individual is a good credit risk and influence interest rates on loans for which an individual applies. It is important to note that credit scores may vary by credit bureau, so it is important to check each one.

Should I Talk to an Attorney about Debt Collector Harassment Laws?

Yes. If you are having issues with debt collection harassment, it is essential to speak to a local collection defense lawyer. Debt collection agencies often violate both the FDCPA and the FCRA on a regular basis. You may be the victim of deceptive or abusive practices by debt collectors. 

If you have any questions or concerns, document the communications and contact an attorney immediately. An attorney can review your case, determine if a violation has occurred, and represent you during any court proceedings, if necessary.