Creditor Harassment

Creditor harassment summary: 

• There are laws specifically designed to protect people from abusive, unfair, or deceptive practices by creditors.

• There are steps you can take to protect your rights.

• No one deserves to be harassed for owing money. 

Creditor Harassment Definition and Meaning

Creditor harassment occurs when a debt collector is abusive or uses deceptive practices to attempt to collect a debt. Before 1977, such harassment was so widespread that Congress passed the Fair Debt Collection Practices Act, which took effect on March 20, 1978. The FDCPA was designed to eliminate abusive and unfair debt collection practices, and encouraged states to take action to protect people from such abuse. 

More About Creditor Harassment

Since 1978, creditors have been legally barred from practices declared abusive. FDCPA regulations apply to debt collectors who regularly collect debt for others, as well as those who use a name other than their own when collecting money they believe is owed to them. 

Let's say someone owns a small fabric manufacturing firm and wants to collect money from a customer for an order delivered several months earlier. The order was quite large, and the business owner is frustrated by the lack of payment. While they don't personally make collection calls, they have an employee on staff who does it for them. Since this employee regularly collects debts on behalf of their boss, the FDCPA applies to them, and there are certain things they cannot do in an attempt to collect. 

The FDCPA gives people the right to sue a creditor or debt collector who violates FDCPA regulations. For example, you can sue for physical or emotional distress caused by the debt collector’s behavior. If you lose work due to the debt collector’s actions, you may be able to recover lost wages. Beyond that, you may recover up to $1,000 from the collector if you can prove the collector violated the FDCPA. Finally, you may also be eligible to recover attorneys’ fees and costs.

Under the FDCPA, lawsuits alleging violations must be brought within one year from the date on which the violation occurred. 

Creditor Harassment: A Comprehensive Breakdown

Here's a sampling of actions debt collectors aren't allowed to take under the FDCPA: 

• Threaten violence

• Use obscene or profane language

• Call more than seven times within a seven-day period, or within seven days after speaking with you about a debt

• Call without properly identifying themselves as a debt collector

• Publish a list of people who allegedly owe money they refuse to pay

• Lie about the amount owed or the legal status (for example, they can't claim the debt still falls within the statute of limitations if the statute of limitations has expired)

• Claim to be affiliated with the government

• Claim to be an attorney

• Falsely imply that the consumer will go to jail if they don't pay, or threaten to make the debts public

• Call outside the hours of 8 a.m. to 9 p.m.

• Call at any time you've informed them is inconvenient

As the law makes clear, creditor harassment is not okay. Once you know which behaviors are acceptable and which are not, you're in a good position to protect yourself from harassment.