Creditor Harassment

Falling behind on your payments is scary. Creditors may be able to garnish your wages, seize your assets, or get a lien on your property. It gets more stressful when collection agencies go overboard trying to get you to pay them. Harassing phone calls and repeatedly calling you at work are examples of debtor harassment.

Federal and state laws protect you against debt collection harassment. They limit how and when debt collectors can contact you. They also limit what collectors can say. This article answers some frequently asked questions (FAQ) about debt collection and harassment. If you’re facing harassment from creditors, talk to a consumer protection lawyer.

What Is Creditor Harassment?

Consumer credit can help you when unexpected expenses come up. You may need to take out a car loan, home mortgage, or student loan. As your debt builds up, it becomes harder to manage. Consumer and credit card debt can become overwhelming if it gets out of control.

When you’re late on payments or default on a loan, creditors can contact you to try and recover payment or secured property. The original creditor can also sell the debt to a collection agency to try to collect money. However, their tactics can become harassment when they cross the line. State and federal laws limit what creditors can do to try and collect on the debt.

Generally, harassment is repeated and excessive communications intended to annoy or abuse you. Examples include the following:

• Making repetitious telephone calls and text messages
• Calling before 8 a.m. or after 9 a.m.
• Making public posts on social media about the debt
• Not identifying themselves as debt collectors
• Using obscene or profane language
• Making threats of arrest or violence

What Federal Laws Protect Against Creditor Harassment?

The Fair Debt Collection Practices Act (FDCPA) protects you from creditor harassment. It’s a federal law that makes it illegal for creditors and debt collectors to harass you to collect money you owe them. Prohibited collection actions under the FDCPA include:

• Making false, deceptive, or misleading claims
• Falsifying the amount you owe
• Threatening to have you arrested
• Misrepresenting themselves as attorneys
• Showing up to your place of employment

What Can You Do When Creditors Call?

Creditors and debt collectors can continue to contact you until you pay the debt. However, you can do some things to protect your consumer rights against harassing debt collection efforts. Document creditor contact, including when they call and what they say. You can use this information when you report harassment to state or federal agencies.

You can ask for debt verification to make sure you owe what they are asking. The validation notice will give you the name of the original creditor, the account number, and the itemized debt amount. You can dispute the debt in writing within 30 days of the validation notice.

How Can I Report Creditor Harassment?

You can report creditor harassment to the Consumer Financial Protection Bureau (CFPB). The CFPB and Federal Trade Commission (FTC) are the government agencies that enforce the FDCPA. These federal agencies can hold bad debt collectors accountable for violations. You can also report creditors who violate state debt collection laws to your state attorney general’s office.

You also have the right to take legal action. You can file a lawsuit against debt collectors who violate the FDCPA. If you win, you may get damages, court costs, and have your attorney’s fees paid by the debt collection agencies.

Will Filing for Bankruptcy Stop Collection Calls?

Bankruptcy is an option if you can’t repay your debts. Filing for bankruptcy begins an automatic stay. This means creditors must stop their collection activity against you while you’re going through your bankruptcy. The stay applies to collection activities like:

• Debt collector contact
• Lawsuits
• Foreclosures
• Wage garnishments

If debt collectors contact you, tell them to contact your bankruptcy attorney. Give your lawyer the names of the creditors who contacted you.

The stay is an immediate but temporary hold on debt collection. But if your debt isn’t discharged in bankruptcy, debt collectors can start contacting you after the bankruptcy process ends.

What Are My Legal Options To Stop Creditor Harassment?

You have several legal options if you’re facing creditor harassment. You can report the creditor to government agencies. You can also take legal action against creditors for harassment. In some cases, bankruptcy is the best option to get a new start and put an end to collection calls. For legal advice about creditor harassment, speak with a consumer protection lawyer in your area.