Fair Debt Collection
I frequently tell my clients that I truly believe that they should not have to be afraid to pick up their own telephone.
In today’s economy, for various reasons, many people often find themselves unable to manage their debt. Perhaps they have recently lost a job or had a change in income. Some may be suffering the economic effects of a divorce or split-up with a live-in boyfriend or girlfriend. They may have had serious health problems, or perhaps just fallen victim to simple money mismanagement.
Whatever the circumstances, surely no one deserves to be victimized by overly aggressive debt collectors, narrowly skirting, and sometimes ignoring the legal limits of fair debt collection practices.
In my law practice, it is a very familiar story that I hear from my client’s again and again. They explain that they are at their “wits end” due to unceasing telephone calls from debt collectors, who call repeatedly, at all hours of the day and night. Some use threatening, insulting, and in some cases, profane language to squeeze a payment out of them; a payment that they often just cannot afford to make. I hear all kinds of upsetting stories about collector’s that just won’t take “no” for an answer, and might be quick to call someone a “liar” or a “deadbeat” if they cannot promise to make a payment on an overdue account.
I recently met with an elderly woman that came to me intent upon filing for bankruptcy. She explained to me that she had been “getting along alright,” making minimum payments, but that when she fell a bit behind, she began receiving dozens of phone calls that were very upsetting. “One man,” she said, “was very angry and told me that if I was not going to pay, that they would take it from my Social Security check. I couldn’t live, if they did that," she said. My client was very relieved when I told her that there was nothing that could be legally done to garnish her Social Security check, but she still wanted to file bankruptcy, just to stop the calls.
Clearly, not all debt collector’s are of the type that would make calls of this upsetting nature. However, if you do fall behind and find yourself being contacted by a debt collector, keep in mind that there are laws that exist to protect you from certain unfair or illegal methods of debt collection.
Most of these laws can be found within the federally enacted “Fair Debt Collection Acts and Practice Acts.” This group of laws gives you important rights. Some of these rights to keep in mind include the following:
- A debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m.
- A debt collector may not continue to contact you if you have informed them in writing that you do not wish to be contacted by them. (Keep in mind that though your letter prohibits the collector from furthering contact with you, it doesn’t prevent the original creditor or current creditor from taking legal action against you and perhaps suing you in court to collect the money you owe if they choose to do so.)
- A collector may not contact you, if within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe the money. After sending a letter like this, a collector may not resume contact with you unless they send you written proof of the debt, such as a bill or signed contract.
- A collector may not contact other persons, such as your family members, friends, roommates or employees with the stated or implied purpose of collecting money that you owe.
- A collector may not contact you if the collector has been informed that you are represented by an attorney.
- Debt collectors may not harass, oppress, or abuse you, for example, they may not:
- use threats of harm or violence
- use obscene or profane language
- falsely imply that you have committed a crime
- state that you will be arrested if you don’t pay your debt
- state that they will seize, garnish or attach, or sell your property or wages, unless they intend to do so and it is legal to do so.
- state that actions, such as a lawsuit, will be taken against you when such action legally may not be taken, or, do not intend to take such action.
If you believe you have been contacted by a debt collector that has violated the law. You have the right to sue the collector in a state or federal court for any money damages you have suffered, plus an additional amount up to $1,000 per violation. Court costs, and attorney’s fees can also be claimed.
Note: This article provides general information and is not meant to provide legal advice. For more detailed information, contact The Massachusetts Attorney Generals Office, the Federal Trade Commission, or an attorney of your choosing to advise you about your particular situation.
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