A shocking three out of four consumers reported that debt collectors ignored their requests to stop calling, according to a recent survey by the Consumer Financial Protection Bureau. The survey also revealed that consumers felt threatened by debt collectors, were contacted late at night and early in the morning and the debt collectors oftentimes used false information- all violations of The Fair Debt Collection Practices Act.
The survey examined a sample of consumers drawn from credit-reporting records about their experiences with debt collectors. More than 1 in 4 consumers contacted by a creditor or debt collector felt threatened, 3 out of 4 consumers who asked collectors to stop contacting them said they refused to do so. More than a third said debt collectors called between 9 p.m. and 8 a.m., according to the survey.
In addition, more than half reported a mistake in the debt, such as an incorrect amount, a debt not owed or a debt owed by a family member. The frequency of calls was also excessive- 17% said they received eight or more calls in a single week.
Consumers are protected from these predatory and unfair practices by The Fair Debt Collection Practices Act– but only if they exercise their rights. The law’s consumer protections include:
Communication: Consumers can tell debt collectors how and when to contact them- including telling them to stop contacting them entirely.
Harassment and abuse: Debt collectors cannot use abusive language, threaten violence or repeatedly call and harass them.
Truthfulness: Debt collectors must be honest about the amount of the debt, whether it is past the statute of limitations for lawsuits and cannot misrepresent themselves.
Debt validation: Consumers must receive a validation letter within five days of the first contact with information about the amount owed, the original creditor seeking payment and their rights on disputing the debt.
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Related Resources: http://www.latimes.com/business/la-fi-cfpb-debt-collectors-20170115-story.html