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Here’s what you can do if a debt collector engages in illegal activity:
1. Tell Them to Stop
Under the FDCPA, you have the right to tell a collection agency employee to stop contacting you. Simply send a letter stating that you want the collection agency to cease all communications with you. All agency employees are then prohibited from contacting you, except to tell you that collection efforts have ended or that the collection agency or original creditor may sue you. You can do this even if the collector is not breaking the law, but many debt counselors feel that, unless you’re judgment proof or truly plan to file for bankruptcy, the best overall advice is not to ignore the debt or try and hide from the debt collector. Usually, the longer you put off resolving the issue, the worse the situation and the consequences will become. Whether you negotiate directly with the collector or obtain a lawyer’s assistance, many counselors feel the best strategy almost always is to engage the collector.
2. Document Illegal Behavior
If a debt collector breaks the law, document the violation as soon as it happens. Start a log — and write down what happened, when it happened, and who witnessed it. Then, try to have another person present (or on the phone) during all future communications with the collector. In some states, you can record phone conversations without the debt collector’s knowledge. In others, this tactic is illegal. Check with your state consumer protection agency to find out what is permitted where you live.
3. File a Complaint
File an official complaint with the Federal Trade Commission (FTC), the federal agency that oversees collection agencies. Ask the FTC to send you a complaint form, or just write a letter. Contact the Federal Trade Commission at 6th and Pennsylvania Ave. NW, Washington, DC 20580,http://www.ftc.gov/ftc/complaint.htm. Include the collection agency’s name and address, the name of the collector, the dates and times of the conversations, and the names of any witnesses. Attach copies of all offending materials you received and a copy of any tape you made.
Also, send a copy of your complaint to the state agency that regulates collection agencies for the state where the agency is located. To find the agency, call information in that state’s capitol city, or check your state’s website.
Finally, send a copy to the original creditor and the collection agency. The original creditor may be concerned about its own liability and offer to cancel the debt.
Once your complaint is filed, don’t expect immediate results. The FTC may take steps to sanction the agency if it has other complaints on record. The state agency may move more quickly to sue the collection agency or shut it down for egregious violations. Your best hope is that the creditor will offer to cancel the debt.
4. Sue the Debt Collector
If you’ve been subject to repeated abusive behavior, and can document it, consider suing the collection agency. But don’t bother if the illegal behavior was annoying but nothing more. For example, if the collector called three times in one day but never again, you probably don’t have a case.
You can represent yourself in small claims court, or hire a lawyer and go to regular court. (The other side may have to pay your attorneys’ fees and court costs if you win.) You’re entitled to any actual losses — for example, your pain and suffering, or the amount you paid to switch to an unlisted number to avoid harassment — and an additional amount (unrelated to actual losses) up to $1,000 for any violation of the FDCPA.
