Debt Consolidation

A Step-By-Step Guide To Deal With Debt Collectors Harassment

As per the laws in the United States of America, debt collectors harassment is considered as a serious offence. There are certain practices that are considered unfair as per the Fair Debt Collection Practice Act. If you are being harassed in any manner by collection authorities or by creditors, the first step is to find out what activities fall under the legal definition of debt collection harassment. Once you are well aware of your legal rights, you can follow these steps.

Write To The Creditor Or Debt Collector

The first thing you have to do is to write a formal letter to the debt collector or directly to the creditor and tell them that you are well aware of the laws regarding debt collections and that you know what kind of legal rights you have. Describe in brief your concerns about debt collectors harassment and request them to take steps to ensure that such instances will not be repeated in future. You have the right to tell them how you want to be contacted. If you do not want to receive phone calls, you can mention that specifically. In fact, you even have the right to request them to stop any further communication by any means at all. Write it specifically in your letter that you are well aware of the provisions made in the applicable in the United States of America, and that if such harassing activities do not stop, you will file a complaint.

Filing Complaints At Local Council

Though there is a provision to file an FIR with the police regarding debt collectors harassment, it is generally a very daunting task to convince the police to take actions against the collection agents or the creditors unless a very serious offense, such as blackmail, fraud, or violence, is also involved. In normal circumstances, it is always better to file your complaint at your local council to the department of consumer protection or trading standards. Once your complaint is filed, the authorities will do a thorough investigation to find out if the claimed offense has been committed and to what extent. If they find the complaint true, the debt collectors or the creditors may be charged a fine up to $5,000. In cases of more serious offense, the court may even forfeit the consumer credit license from the creditors or debt collectors.

Contact The Office Of Federal Trade Commission Directly

If the local council does not take any action regarding your complaint for debt collectors harassment, you have the legal right to contact the office of Federal Trade Commission directly and file another complaint.

Write To The Trade Association

Lending companies usually are members of some trade associations. You should try to find out the details of the trade association your creditor is a member of. There is a code of practice regulated by these associations, which all members must follow thoroughly. This code of practice also has specific provisions regarding harassment to borrowers by collection agents. When you file a complaint to these associations, the creditors will be warned of such activities, and if they still continue to harass you, their membership may be cancelled.

When it comes to dealing with , you also have an option to follow your own prosecution in the Magistrates Court, but it can turn out to be a very expensive affair and you will also need help from expert lawyers in such cases.

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Posted in Debt Collection Harassment, Debt Consolidation | 1 Comment »

One Response to “A Step-By-Step Guide To Deal With Debt Collectors Harassment”

  1. Joseph says:

    Debt collecting Agency some times crosses their limit o going harassment to the borrower. But, now fair Debt Collection Practice Act can support you to ignore the debt collector harassment. Your awareness with your legal rights will play a crucial role to stop the harassment. First of all you can talk to creditors and tell them that you know the legal right given for the borrower. FDCPA provide you legal provision of filing the complaint against such harassment activities. You can even file an FIR with Police. But, it seems a bit difficult some times to convince the Police Officer. You can file your complaint to debt of consumer protection. After your complaint, the debt will sign for an investigation. After your complaint, the debt will sign for an investigation. If the complaint finds to be true, creditors or debt collector may have to give a time. In case of the failure of getting the decision from the local council, you can contact the officer of Federal Trade Commission. If you are able to search of Trade Association under which your creditor is practicing, you can go for the same. The creditors will be given a warning for their behavior.

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