Dec 4, 2008 11:00 pm US/Eastern
You Have Rights Against Aggressive Debt Collectors
BOSTON (WBZ) ―
With the current state of the economy, it's no surprise that more people have run up serious debt. Many may end up in the hands of a collection agency.
But just because you owe money, does not mean you have to tolerate threats, insults, and harassment.
YOU DO HAVE RIGHTS
We spoke with a Rhode Island woman who prefers to remain anonymous about her experience with debt collections calls. Here are some of the things they told her over the phone: "They were going to damage my credit report, they were going to sue me, they called me a liar, and they said they were going to contact my family members such as my parents."
Every time her phone rang, she panicked, "Every call got more threatening. It was like a nightmare that would never end."
The woman even provided evidence that she was paying off the debt with the original creditor, but she says the collection agency didn't buy it. "They basically laughed in my face over the phone."
There are state and federal laws to protect consumers from overly aggressive debt collectors. The problem is most people don't know that.
"Debt collectors know that they are breaking the law. They do it because they know that in most instances, they're going to get away with it," says Jeffrey Suher, a consumer protection attorney who represents people in debt collection cases.
Here are just some of the things collection agencies are not allowed to do under federal and state fair debt collection laws:
- They cannot threaten to sue if they don't really mean it.
- They can't tell a third party such as a parent or friend about your debt.
- They cannot use obscene or abusive language.
- In Massachusetts, they cannot call you more than twice in a seven day period or at odd hours of the day.
SOME ATTORNEYS SPECIALIZE IN DEBT COLLECTION
"She was so upset and in her words, so devastated, that she hung up the telephone," said Arlington attorney Yvonne Rosmarin on a client who felt traumatized by a collection call. "She is still in fear of them long after this has been over."
Rosmarin's client fought back through the legal system and won.
"Because of the violations that we had alleged of the state and federal debt collection laws, they ended up paying her money."
HOW TO BATTLE COLLECTION AGENCY HARRASSMENT
So what can you do if you are being harassed by a collection agency?
Suher offers this advice. "Document the call, get a notebook, write down the date and time, the substance of the call. Keep messages left on an answering machine. If you get any letters in the mail, make sure you keep those including the envelopes."
Suher also says, if you are being mistreated, you don't have to talk to them, just hang up the phone. You can also send a
certified letter asking them to stop calling you. And insist that the company prove in writing that the debt is actually yours.
Check out the following resources for more information on the laws protecting against aggressive debt collection agencies and what you can do:
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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