Finances

How To Deal With Debt Collection Calls

Debt collectors are becoming increasingly aggressive. They find forceful ways to collect a debt from a debtor, making themselves a regular annoyance.


If you’re falling behind your payments and have due debt accounts, you may receive harassing calls from a collection agency. But you can beat the debt collectors by understanding your rights under the Fair Debt Collection Practices Act (FDCPA).

Know what Debt Collectors Cannot do 

Debt collectors are required to follow the Fair Debt Collection Practices Act. To be clear, this is a Federal law that states what debt collectors can and can’t do when collecting debts. If you know your rights under the law, you can deal with aggressive debt collectors without fear.

For example, debt collectors cannot call you repeatedly or threaten to harm you using profane language. They cannot deposit your post-dated check early or mail a collection letter by postcard.

They must also operate under transparency. The company cannot misrepresent their identity, company name, or the amount you owe. Know the list of rules that debt collectors have to follow.

1. No Early Morning or Late Night Calls

According to the FDCPA laws, a debt collector cannot reach a debtor between 8:00 PM and 9:00 AM. No matter how much you owe, you have the right to enjoy a peaceful evening and morning. If a collector calls you late in the evening, refuse the call.

2. No Calls at the Workplace Unless you Agree to it

Collection agencies are required to receive your consent before contacting you at your workplace. Make it clear to the debt collector that your employer disapproves of harassing calls while you’re at work

3. No Verbal Abuse

 A debt collector cannot verbally abuse a debtor for not repaying the debt. Likewise, they cannot threaten you, the debtor, or imply that you’ve committed a crime by failing to pay back your high-interest debts.

4. Cannot Contact your Friends or Family 

Debt collectors cannot contact your friends and family members. If they call your family members or friends, they can only ask for your phone number or address. However, if they do so, they’ll be breaking the rules of the FDCPA, and you will have grounds to file a complaint against them. 

 

5. Give a Written Notice on Request 

If you make a written request, a debt collector must comply within five days of contacting you. He has to mention the amount of money you owe your creditors and also their names.

6. Honor a Request of no Further Contact

If the debtor sends a letter requesting the debt collector stop any further communication, he must abide by it. You must send the letter within 30 days of receiving the debt collection notice.

Here are a few things you can do within the law.

Keep a Record of the Number of Times you Contacted the Creditors

You can contact the debt collectors through phone calls, emails, and fax. It’s also a good idea to record the number of times you have contacted the debt collectors. If you find that the debt collectors call you during odd hours, you can file a complaint against them.

Keep a Note of Everything

It would help if you kept a note of any threats you receive from the debt collector. A debt collector has no right to engage in abusive language, even if you could not pay your outstanding bills.

They should never inflict any bodily injury on you for the outstanding dues. Apart from this, a debt collector can’t threaten to foreclose on your property even if you have outstanding debts.

You can Dispute the Debt

Send a debt validation by certified mail to the debt collectors. Once they receive your letter, they are required to send proof of the debt. During this time, they need to stop contacting you.

If there is evidence of the debt, they can contact you for collection. However, if you think the debt is not yours, you can dispute its validity. To prevent this, you need to send a cease and desist letter.

Never Acknowledge Debts over the Phone

Debt collectors use many tricks to collect debts. Often, they call the debtors to collect the debt, which has crossed the statute of limitations (SOL) period. They need an acknowledgment from the debtors to restart the debt cycle. 

So, they try to scare the debtors over the phone. Once the debtor acknowledges the debt, the SOL clock will restart, and they are liable again.

It is helpful if you don’t acknowledge a debt over the phone. Also, remember, the SOL limits how long the creditor or debt collectors can collect the debt from you. After the SOL expires, the debt collectors can’t force the issue.

It is important to know the SOL for your state. The SOL varies by state. In some states, the SOL is 3-6 years, and in others, it can be as long as 7-10 years.

Before you acknowledge anything, ask the debt collector to validate the debt first. This way, you can avoid restarting the SOL of debt again.

Hire an Attorney

Debt collection calls are stressful and annoying. Managing them alone can be a nightmare. You can avoid this trauma by contacting a consumer rights attorney. The attorney will help you deal with the debt collectors.

Make sure you offer them the notes of your conversation with the collector and the timing of the calls. The attorney can determine whether you have a case and guide you to take the right steps.

Report any Harassment to the FTC

You can report inappropriate behavior of debt collectors to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau. The authorities can take legal action against the agency with proof of complaints.

Finally, collection calls from persistent debt collectors can make life stressful and annoying. While most debt collection agencies abide by the laws, bad debt collection practices are rising. Staying informed of your rights under the law can help you handle debt collectors with confidence.

The federal law is there to safeguard you on managing debt collectors in a much more efficient manner. If you control your spending, you can stay debt-free. Here are five tips to stay debt-free.

About the author

About the author

Lyle David Solomon is a licensed attorney in California. He has been affiliated with law firms in California, Nevada, and Arizona since 1991. As the principal attorney of ovlg.com, he gives advice and writes articles to help people solve their debt problems. You can connect with him on LinkedIn or tweet him at @lyle_solomon.

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