Fair Debt Collection
Know your rights so you can take action against harassment from debt collectors and collection agencies.
If you are behind on payments for your credit cards, car, mortgage or student loans, you’ve probably been interrupted at some point or another by phone calls from collectors – especially following the recent economic recession. “Thirty million Americans came out of the recent financial crisis with one or more debts in collection,” estimates Richard Cordray, Director of Consumer Financial Protection Bureau (CFPB). Debt collectors make numerous pesky phone calls each day to debtors, but the Fair Debt Collection Practices Act (FDCPA) warns some of the practices that collectors use may be illegal.
The FDCPA explicitly states, “A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt or may not use any unfair or unconscionable means to collect or attempt to collect any debt.”
Creditors and collectors are bound by the guidelines set forth under the FDCPA and cannot take excessive action to collect a debt. The CFPB warns it is keeping a watchful eye on how creditors interact with consumers and outlined the following as likely grounds for legal action against perpetrators.