Debt collectors can be persistent to the point of becoming threatening or intimidating. However, this does not mean consumers are without rights. The Fair Debt Collection Practices Act (FDCPA) protects consumers from unfair debt collection practices by third-party debt collectors. The law provides when debt collectors can contact individuals, what information they can provide to third parties, and other protections.
In 2018, the Federal Trade Commission received a total of 84,500 complaints regarding debt collectors. The following violations are the most common offenses made by debt collectors.
- Failure to Provide Written Verification of the Debt.
Any person who is contacted regarding a debt has the right to get written verification of the amount owed. Under the FDCPA, the debt collector must send written verification of the debt within five days after making initial contact. In that communication, the debt collector needs to provide the amount owed, the name of the original creditor, and information regarding how the individual can dispute the debt. However, many debt collectors fail to follow through on this requirement. Alternatively, many consumers are not aware they have the right to request this information.
- The Debt Was Never Actually Owed.
One point of requesting written verification is to determine whether the debt belongs to that individual. If the consumer believes the debt does not belong to him or her, that person can request in writing within 30 days of initial contact with the debt collector that he or she wants verification of the debt. Many debt collectors are banking on the fact that the consumer is not aware that he or she can dispute the validity of the debt in the event it is not owed.
- Harassing Tactics.
Some of the most common complaints have to do with the communication tactics used by debt collectors. Under the FDCPA, collectors cannot call repeatedly to get someone to pay on a debt. Debt collectors are prohibited from calling before 8 a.m. or after 9 p.m., or at other times if it is inconvenient and the consumer tells the collector to stop calling.
- Threats and Abusive Communication.
Many violations have to do with other types of methods debt collectors use to scare consumers into cooperating. These methods normally involve threats or abusive language with the sole purpose of intimidating the person on the other end of the phone. However, this type of communication is illegal under the FDCPA, and a consumer is within his or her rights to file a violation in the event a debt collector uses such tactics.
- False Statements or Misrepresentations.
Collectors have also been known to threaten a lawsuit or criminal prosecution if the consumer does not cooperate. However, collectors cannot threaten a lawsuit, prosecution, wage garnishment, jail time or harm to the person’s credit score unless they have the legal authority to do this and fully intend to do the same. Otherwise, the threats are illegal under the FDCPA.
- Sharing Information with Third Parties.
Under the FDCPA, debt collectors can share very limited information when speaking to individuals connected to the original debtor, including that person’s family members, friends, neighbors or co-workers. If they do speak with any of these individuals, they cannot reveal that a debt is owed, and they are limited on how many times they can call those connected to the consumer who owes the debt. Essentially, the only information they can gather from these types of people is how to get a hold of the person who owes the debt. Many debt collectors have been known to do more than this or at least push the envelope, which results in FDCPA violations.
If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
Source: https://www.marketwatch.com/story/these-are-the-biggest-complaints-about-debt-collectors-2019-07-11