Illegal Tactics Used by Debt Recovery Companies

Debt recovery companies are not as highly regulated as banks and credit card companies. Because of this, the collection industry feels they can break the law with little consequence. This is an unfortunate fact and a debtor should be well aware of the Fair Debt and Collection Practices Act to use as protection against an unscrupulous creditor.

Some of the Illegal Tactics That are Used

The most common tool of collection agencies is intimidation. They will lie, yell, and twist the situation so the debtor will feel as guilty as possible about not paying the debt. Lying usually consists of threats of legal action if contact isn't made by such and such a date. Under the FDCPA, any claim of legal action is not permissible unless the debt recovery company actually goes through with their threat. A majority of the time the collector will not act, making such threats toothless while causing distress to the debtor.

Attempts to contact family members may be made. It is legal for the collector to contact a relation but they can only do so in order to confirm contact information. Any attempt to convince the family member to take care of the debt is outright illegal. The only time the recovery agent can talk to a relation is to a spouse. And if an attorney is involved, then only the attorney is to be contacted.

Phone slamming is another commonly used tactic. Contact over the phone is limited to the hours of 8:00 am to 9:00 pm local time, and only on a land line. Cell phones are off limits unless permission has been given first. Calls may not be made to a work phone number if the management does not allow it. The amount of calls made must be reasonable. Generally reasonable is considered to be a couple of times a day. Anything more than that is slamming. Also, any contact made outside of these hours is also breaking the law.

These are just a few of the tactics that are used by debt recovery companies. More egregious examples exist and are ongoing every day. A debtor has rights and protections that are afforded to them by the FDCPA. Document each and every violation of the act in case legal action is needed.

Legal Help

If you're a debtor that is being abused by one or more collection agency, it's time to call a lawyer. A debt collector that breaks the law and can be sued in court for each separate violation. It's best to talk to a lawyer about the situation for advice.