Debt collection is somewhat of a cutthroat business. After all, it takes a strong, persistent attitude to work for a collection agency and do a good job at that. In fact, the problem with most collection agency employees is that they have a tendency to take things a bit too far while attempting to recoup debts. In fact, it’s not unusual to hear stories about debt collectors using nasty, verbally abusive tactics in order to scare people into paying their debts.
Of course, it’s a tough situation either way. If a person has run into financial difficulties and can no longer pay his bills, then it’s understandable that he might do whatever he can to run from his problems until he comes up with a better solution. However, in the eyes of a creditor, such behavior is unacceptable. After all, if money is owed, then it should be paid back. And the fact of the matter is that many people won’t take the necessary steps to make good on their debts unless otherwise prompted. On the other hand, in some cases, a person might just need a tiny bit of leeway to come up with the money to pay his bills, and in such situations, the last thing that individual will want is a series of menacing phone calls demanding that the debt be paid immediately and in full.
To come up with a middle ground solution to this problem, the government decided to step in by putting the Fair Debt Collection Practices Act into practice. The Fair Debt Collection Practices Act establishes the guidelines for the proper collection of debt and essentially tells debt collection professionals what they can and cannot do in order to recoup the funds owed to their companies. While the Fair Debt Collection Practices Act is supposed to encourage creditors to play fair, the reality is that many debt collectors have a tendency to ignore the rules and use whatever tactics are necessary to get people to pay up.
As a bankruptcy attorney who has been helping clients manage and settle their debts for the past three years, Darren Hojnacki of the Atlanta-based firm Hojnacki & Hojnacki, LLC is a firm believer in the fact that those who owe money have rights too. He therefore thinks that people ought to be aware of what debt collectors aren’t allowed to do when it comes to recouping money.
For starters, debt collectors are not allowed to make repeated phone calls in a short period of time, nor are they allowed to contact debtors by phone at unreasonable hours. If a collection agency employee calls a residential number before 8 a.m. or after 9 p.m., then he is in violation of the Fair Debt Collection Practices Act. Additionally, debt collectors cannot attempt to contact debtors at work if they are asked not to do so.
Another thing that debt collectors can’t do is use abusive, offensive language when contacting people about their debts. The use of racial slurs and obscenities is also strictly forbidden, as is engaging in threatening speech. Furthermore, debt collectors are not allowed to issue false warnings that any failure to pay a debt will result in an immediate or future arrest. And while collection agency employees can state that they might have no choice but to turn matters over to company attorneys, they cannot threaten to destroy a person’s reputation, credit rating, or property in the process.
When it comes to collection calls, people ought to be aware that it is illegal for debt collectors to make false representations with respect to their identities. A debt collector cannot claim to be an attorney or law enforcement official when he is not. Similarly, a collection agency employee cannot contact a person under the false premise that he is conducting a survey when he is indeed calling to follow up on an outstanding debt.
One final thing that debt collectors are not allowed to do is harass outside individuals — including a debtor’s family members, friends, neighbors, and coworkers — who do not, in any way, have legal obligations to repay the debt in question. While collection agency employees can contact such individuals in order to try to locate a debtor who seems to have dropped off the radar, they cannot reveal the details of his account or make repeated calls when asked not to do so.
If you’ve been the victim of creditor abuse, then you should know that you do have certain rights. So the next time a creditor breaks the rules, document the incident and hire an attorney to take action. Remember, the fact that you owe money does not give debt collectors the right to violate the law.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
