5 Lines Debt Collectors Legally Can’t Cross
If you're behind on debt payments, your lender might send you to collections. While harassing phone calls and persistent tactics of some debt collectors can drive you mad, there are many restrictions on debt collection practices that can help lower your stress levels.
Here are a few of the top things debt collectors aren't allowed to do when attempting to collect a debt.
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1. Failing To Verify the Debt When Asked
The first thing you should do if contacted by a debt collector is ask for verification that the debt is yours. You can request a debt verification letter and the Fair Debt Collection Practices Act (FDCPA) requires them to send you written verification of your debt within five business days.
While they are gathering information and sending it to you, they must cease debt collection practices -- including calls. If they refuse to send you verification, you do not have to respond to their requests for payment and can ask them to stop calling until you receive verification. You can also report them to the Consumer Financial Protection Bureau (CFPB).
2. Calls at Inconvenient or Prohibited Times
The FDCPA stipulates debt collectors are not allowed to call you before 8 a.m. or after 9 p.m. local time unless you have explicitly given them permission to do so. You can also request debt collectors do not call you at work and they must comply.
This rule is to protect your work and personal life from constant calls and helps keep peace in your life while you're trying to sort out your debt payments. If a debt collector violates this rule, you can report them to the CFPB.
3. Harassing, Threatening or Abusive Behavior
Some debt collectors are known for being harsh on the phone or using threats to get you to pay your debt faster. However, this is strictly prohibited under federal law. According to the FDCPA, debt collectors cannot "harass, oppress or abuse any person in connection with the collection of a debt."
Debt collectors also cannot publish your name in a list of persons that refuse to repay their debts. Repeated calls, threats, obscene language or attempts to shame you are all illegal, and you can report this behavior to the CFPB.
4. Lying or Misrepresenting Their Authority
If your debt collector lies to you or provides false or misleading information to get you to pay a debt, this is illegal. This includes falsely claiming to be a lawyer or government representative and claiming you have committed a crime or done something illegal by not repaying your debt. Behavior like this should be immediately reported to the CFPB.
5. Continuing To Contact You After Request To Stop
You have the right to request a debt collector stop contacting you -- and they must comply. If you write a cease-and-desist letter to the debt collection agency, a debt collector can only contact you on the basis of specific actions (i.e. filing a lawsuit) or to simply notify you that they will no longer be contacting you. This is a surefire way to end harassing phone calls and allow you to put together a debt payoff plan of action.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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