As a bad debt grows, debt collection agencies seem to exert more and more pressure on the debtors in the form of creditor harassment. Although debt collection is legal, harassment by collection agencies is not! The FDCPA laws are like the cool shades that shelter the consumers’ rights and offers protection to illegal debt collection tactics. There are various types of harassment that the creditors impose on the debtors:
- Debt collectors threaten to hurt.
- They come to damage any personal property.
- They use obscene language over the phone.
- They threat to put the consumer behind the bars.
- They make disturbing calls at your workplace.
Creditor harassment and consumer rights – (Fair Debt Collection Practices Act)
There are two different types of creditor harassment laws, the federal laws and the state laws; the federal laws are for the entire citizen, while the state laws are only for the citizen of that particular state. If both the laws are taken into account it’s the state law that is more effective. The FDCPA is designed in such a way that it can fight back the abusive creditors and if required can also put a penalty on them which might even count up to $1000.
Utilizing unfair practices in collection of debt
There are situations where the debt collectors may charge more than the original amount.
The debt collectors may ask the consumers to incur certain extra financial charges.
The debt collectors may threaten to damage personal property.
Unfair or outrageous collection activities are practiced by the debt collectors.
Notice Violation
The creditor sends a letter to the debtor addressing him as a “dead beat” which means someone who has no money to pay for his credit cards.
The creditor sends out a collection letter which signifies a court order.
Limitations of FDCPA
Firstly, the debt must be a consumer debt and not a business debt.
FDCPA does not apply to third party collection agency.
It is only the debt attorney who can suggest which law applies and when, so that he can give him the required protection as and where required.
FDCPA to save the consumers from creditor harassment
The FDCPA has been designed in such a way that it can protect human rights against creditor harassment .If the harassment is illegal, the consumers can even sue the debt collectors for any kind of damages done either to their personal property or to them. A local consumer attorney can guide the consumers as to whether the case of violation of FDCPA laws against the debt collectors is legal or not!
You can try out the following to deal with creditors
- Police assistance
- Complain to the trading standards
- Doing full and final settlement to clear debts with a help of a debt settlement law firm.
- Take creditor to Small Claims Court.
12 comments:
This is really sad to read this creditor harassment reality and to know that people actually go through this nonsense. I think you have suggested some great measures to defend ourselves from this creditor harassment.
indeed, it really happens..i remember a friend have been threaten like that...debtors should learn how to depend themselves.
I can relate to you post unfortunately.I'm glad to see that I'm not alone!
Creditor harassment is very much real and is very rampant. One way of defending yourself is to seek for debt help professionals. They can negotiate with your creditor to arrive with agreeable terms for both parties. In that way, you will be able to minimize the burden of your debt concerns.
great post, it really helped me alot…gives me alot of information… thanks…. nice job…
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Self Credit Repair | Bad Credit Repair Report
Great post. Some Collectors go way too far, and thank you for informing your readers about what they can do to protect themselves.
It's best to pay for your debts as soon as possible. It's the best way to avoid harassment by the collection agencies. If ever it's inevitable that you can't pay, the law can only protect you up to a certain extent. We pay our credit card financing loans as soon as they're due. Good thing here is that we have backup in the form of receivable financing loans.
Debt collectors can be annoying. I have experienced one in my lifetime however it was not the horror stories that I have heard. Thanks for the post and the info about how to handle the over the top collectors.
It's tough but you have to deal with them or else look for another.
This credit check is regularly maintained and if a credit card holder is unable to pay its payment within the time limit for the payment so it will be given a grace period and in one case, it would be unable to pay its credit.
Nice one.. Looking forward for more information.
Its good things, keep share
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