Types of Unfair Debt Collection

Collection agencies are typically barred from unfair debt collection practices, but that doesn't mean it won't happen. The collection industry isn't as tightly regulated as the credit card companies. In turn this makes the collector act more boldly. They rely on consumers being unaware of their rights under the Fair Debt Collection and Practices act in order to get their money.

What Makes a Debt Collection Unfair

All violations of the FDCPA are unfair as well as illegal. The government has granted the right to a debtor to not be harassed by a creditor. Therefor, a debtor has every right to expect that the collector will play by the rules. Here are some examples of what makes a collection attempt unfair.

• Any phone calls that occur outside of the 8am to 9pm local time restriction. If a collector is calling before or after these hours, they're breaking the law.
• Sending a debt notification on a postcard. Anyone can read a postcard as it winds its way through the mail system. The debt collector is broadcasting your breach of contract to anyone who can read it. Correspondence is supposed to be by a sealed envelope only.
• Calling someone other than a spouse or a lawyer such as a family member. Contacting a family member and pumping them for information other than what's outlined by the act is abusive. The family member has no stake in either your debt or your credit rating. Contact is only generally allowed to occur once and the only information that can be collected is a name and address confirmation.
• Threats to file a lawsuit. A debt collection agency cannot make an empty threat to file a lawsuit in an attempt at coercion. They must make good on their words and actually file. Making the statement as a threat to get money out of the debtor is patently unfair.
• A consumer can request, in writing, that all phone contact cease and any further communications be by mail. Willful contact after the request has been made is a violation of the act. The collector must abide by the law and the letter requesting that all phone contact stop.

Steps to Take to Stop Unfair Collections

The first step is to send letters that have return receipts on them. This confirms that the collection agency has received your letter. Keep the receipts as proof that you indeed made the attempt to resolve the issue. If the debt collection agency has received all of your communications and insists on ignoring them, it's time to call a lawyer. At this point the abuse is clear cut and actionable. An experienced debt collection attorney will know how to apply the law and obtain the best results for your situation.