What's the worst thing debt collectors can legally do?

When Do Collectors Cross the Line?

John woke up one morning to a loud banging on his front door. When he opened it, two large intimidating men in suits shoved their way into his home, screaming that they were there to collect on his past-due credit card debt.

They began ransacking his living room, overturning furniture and dumping drawers, shouting threats that if John didn't pay them right then, they'd start breaking his possessions. John was terrified, unsure if these men had any authority to be there or what they might do next. 

This is an extreme example, but harassment and intimidation like this represent some of the worst abuses perpetrated by certain debt collectors. When collecting delinquent accounts, some collectors overstep legal bounds and use unethical, threatening, and abusive tactics. These practices violate federal law and consumer rights. If you are behind on bills and trying to figure out how to deal with debt collectors when you can't pay, this article will outline your rights and options.

This article will examine the worst practices of unscrupulous collectors, including harassment, threats, deceit, and manipulation. We'll outline illegal debt collection companies, methods to avoid them, and your options for reporting collector misconduct.

We'll also examine illegal practices to watch for and how to make collectors stop, including how to stop debt collectors from calling.

By knowing your rights and not tolerating harassment, you can seek relief from the most egregious debt collection abuses.

Harassing and Abusive Tactics

One of the most common complaints against debt collectors involves excessive harassment by debt collectors calling phone and other means.

 According to the Fair Debt Collection Practices Act (FDCPA), collectors are prohibited from repeatedly causing a phone to ring to annoy someone, calling without disclosing their identity, and communicating at times known to be inconvenient for the debtor.

Specific forms of harassment from debt collectors may involve:

• Repeatedly calling the debtor
• Collectors could call multiple times per day, even after requesting they stop contacting. This qualifies as harassment under the FDCPA.
• Using abusive, profane, or threatening language
• It's illegal for collectors to use obscene, profane, or threatening language such as cursing at or insulting the debtor.
• Making public threats of violence or harm
• Any threats of physical harm or violence made publicly or privately violate FDCPA guidelines.
• Contacting the employer about the debt
• Collectors are prohibited from communicating with a debtor's employer about their debt. This could embarrass the debtor and put their job at risk.
• Contacting friends/family about debt
• Collectors shouldn't discuss the debt with friends or family except to locate the debtor. This is an extreme invasion of privacy.
• Calling at odd hours
• Calling outside the acceptable window of 8 am to 9 pm debtor local time violates federal law.
  

Learn more about the common myths and scare tactics used by debt collectors.

False Statements and Misrepresentation

In addition to harassment, some debt collectors resort to false statements, misinformation, and deception to intimidate debtors into paying. These dishonest tactics violate the FDCPA's prohibitions on using false, deceptive, or misleading means to collect debts.

Specific forms of false statements and misrepresentation include:

• Lying about legal action if the debt is not paid
• Collectors might falsely threaten lawsuits or even arrest if the debtor doesn't pay up immediately. In reality, they rarely follow through on these threats.
• Misrepresenting the debt amount owed
• Collectors could exaggerate or inflate the actual debt to scare and confuse the debtor. This is illegal.
• Impersonating an attorney or law official
• Collectors cannot pretend to have official authority they don't actually possess. Impersonating legal officials is unlawful.
• Tacking on extra fees not in the original debt
• Collectors can't arbitrarily add collection fees, interest, or other charges not explicitly allowed in the original debt agreement.
• Increasing the interest rate arbitrarily
• The interest rate on the debt can't be raised beyond what was agreed upon originally per the credit contract.
  

Collectors who lie about legal consequences, fabricate fees, or impersonate officials are hoping to frighten and deceive debtors. Standing up to these tactics is key to debt buyers avoiding being manipulated.

Illegal Fees and Account Manipulation

Along with false statements, some collection agencies illegally make credit reporting company pad accounts with arbitrary fees and interest that allow them to collect more money. Some even attempt to revive old, expired credit card debts and collect on those.

Specific unethical practices involving fees and accounts include:

• Tacking on extra fees not in the original debt
• As mentioned before, collectors cannot arbitrarily charge late fees, collection fees, or other penalties not explicitly allowed by the contract.
• Increasing the interest rate arbitrarily
• Hiking up the interest rate beyond what was agreed upon in the credit contract is unlawful.
• Resurrecting and collecting on time-barred debt
• In most states, debts are considered "time-barred" after 3-6 years when the statute of limitations has expired. Collectors are prohibited from suing or threatening suit to collect on these expired debts.

These shady practices allow collectors to unlawfully move household debts and inflate account balances past due debts. In addition, by exercising rights on old time-barred debt they hope to extract payments from debtors who don't know collectors lack authority on aged debts.

Calling at Odd Hours Outside FDCPA Allowance

The Fair Debt Collection Practices Act prohibits debt collectors from calling consumers outside the acceptable window of 8:00 am to 9:00 pm local time. Calls made before 8:00 am or after 9:00 pm are considered harassment unless previously agreed upon with the debtor.

Specific violations include:

• Calling before 8:00 am or after 9:00 pm debtor's local time - Collectors cannot place calls outside the daily FDCPA time window without prior consent.
• Calling continuously during work hours against request - If a debtor requests calls only during non-work hours, the collector must comply. Ignoring this request violates federal law.

Receiving frequent calls at inappropriate times like early morning or late evening adds undue stress to the debt collector calling the buyer. Collectors may hope at catching debtors off guard at inconvenient times to force payment.

Remember, per FDCPA you have the right to stipulate call times that don't interfere with work or sleep. Don't hesitate to demand compliance if collectors ignore your requests.

To protect yourself, review your credit reports and account statements closely, and don't pay on expired debt. Consult the statute of limitations in your state so you know when debts become time-barred and unenforceable in court.

Publishing Debtor's Info to Publicly Shame

Some debt collectors resort to humiliating and shaming tactics to get debtors to pay up. This includes publishing private account details publicly or contacting third parties about who owes the debt.

Specific shaming tactics include:

• Posting names, contact info, or amounts owed on public forums - Collectors cannot legally divulge consumers' private information publicly without permission. This allows others to see it.
• Contacting neighbors about the debt to humiliate the debtor - Discussing account details with a consumer's neighbors or community crosses ethical and legal lines.
• Posting signs outside the debtor's home about unpaid debt - Any public notices about debt posted where others can see them are unlawful.
• Listing debtor's name in the newspaper for unpaid bills - Placing "deadbeat" ads or notices about overdue bills meant to shame is prohibited.

These public shaming methods deeply humiliate consumers and pressure them to pay, even if they can collect a debt that is disputed. However, collectors are never permitted to discuss debt publicly or with unauthorized third parties.

Debt Collector Threatening Serious Harm or Violence

The absolute worst behavior from collectors involves threatening or implying violence or bodily harm. Under no circumstances can collectors threaten consumers with physical violence, regardless of how behind on payments they may be.

Specific examples of unlawful threats and harassment:

• Threatening physical harm to the debtor or family
• Any threats to injure, hurt or physically abuse a debtor or family members are illegal.
• Threatening to kill/injure pets - Threats against pets, livestock or other animals owned by the debtor qualify as unlawful.
• Any threats involving weapons or bodily injury - Threats suggesting the collector is armed or will bring weapons or cause injury to cross major legal boundaries.
• Vandalizing property - Damaging cars, homes, or possessions as retaliation for unpaid debt constitutes illegal harassment.
• Stalking or following debtors - Tracking debtors without consent to intimidate them into paying violates state stalking laws.

Any collectors who make threats or even suggestions of violence have gone far beyond legal collection methods. Physical intimidation is never acceptable, and such egregious misconduct should always be reported.

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