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Getting Harassed?
Protect Yourself From Unfair Debt Collection Practices
Know Your Rights
July 7th, 2010
The booming debt collection
business as a consequence of the recession is resulting in many debt collectors
resorting to unethical and unacceptable behavior in pursuing debt from
consumers. As it may be off-topic from mortgage foreclosure, we feel that our
readers may benefit from knowing their legal rights in dealing with debt
collectors.
Debt collectors have been
reported to be resorting to harassment through phone calls coupled with abusive
language including distasteful violence in efforts to collect money from folks
who are financially struggling. Harassment complaints against debt collectors
rose from 50% to 67,550 in 2009 and are poised to rise another 13% in 2010.
These figures are based on the number of FTC complaints filed in the first half
of 2010.
The number one, most popular
complaint was repeated calls. It is very common for debt collectors to haunt
consumers through religious calling for days, weeks, months or even years. When
they successfully get a hold of the person on the phone, they resort into using
abusive communication. Complaints regarding debt collectors utilizing profane
language reportedly surged 35% in 2009.
A fifty five year old woman
from
He consistently called and
threatened her using unacceptable language such as ‘If you don’t talk to me,
you are deadbeat’. It was very uncomfortable to the point she felt paranoid as
if someone may show up at their front door.
Ken Floyd, an attorney who
represents victims of debt collection harassment at Floyd Legal Firm in
Other abusive or illegal
tactics include calling before 8 am or after 9 pm. They often asked for more
than what is owed or attempt to contact a third-party associated with the
consumer and revealing embarrassing or private information about the consumer.
There are also extreme strategies adopted by unscrupulous collection agents
such as threats that resemble prosecution, jail, property seizure or contacting
their employer often resulting in the victim losing his or her job.
The above behavior is not
only disturbing but illegal and in violation of the Federal Trade Commission’s Fair Debt Collection Practices Act
enacted in 1977. According to Mark Shiffman, a
spokesperson for the Association of Credit & Collection Professionals,
there is a growing business of attorneys and savvy consumers who have learned
to legally sue debt collectors and reap a lot of money for damages.
According to the FTC,
consumers have the right to take debt collectors to state or federal court. If
judgment is ruled in favor of the consumer, the debt collector will be liable
for any damages as a result of the harassment, loss of income and including
medical bills.
Even if the consumer fails to
prove the monetary damages suffered but is able to successfully prove
evidential signs of harassment, the debtor can be awarded up to $1,000 and will
be reimbursed for court or any legal fees.
Below is an excerpt or
highlights of the Fair Debt Collection
Practices Act furnished by the FTC.
806. Harassment of Abuse (Page 9)
A debtor may not engage in any conduct the natural
consequence of which to harass, oppress or abuse any person in connection with
the collection of a debt. Without limiting the general application of the
foregoing, the following conduct is a violation of this section:
- The use
or threat of use of violence or other criminal means to harm the physical
person, reputation, or property of any person.
- The use
of obscene or profane language or the natural consequence of which is to
abuse the hearer or reader.
- The
publication of a list of consumers who allegedly refuse to pay debts,
except a consumer reporting agency or to persons meeting the requirements
of section 603(f) or 604(3) of this act.
- The
advertisement for sale of any debt to coerce payment of debt.
- Causing
a telephone to ring or engaging any person in telephone conversation
repeatedly or continuously with intent to annoy,
abuse or harass any person at the called number.
- Except
as provided in section 804, the placement of telephone calls without
meaningful disclosure of the caller’s identity.
There are a lot more juicy details not illustrated here. Know your rights. view the complete updated document of the
Fair Debt Collection Practices Act
Comments
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