Dealing with debt collectors can be a stressful experience. The constant calls and letters and the mounting pressure to repay your debts can feel overwhelming. However, just because you owe money and a debt collector owns the right to repayment does not mean you are without legal rights.
Federal and state laws sharply limit debt collectors' conduct, including how they may contact you and what they say when they speak with you. They also set strict potential penalties and legal consequences for debt collectors who break the law.
You may sue them to seek financial compensation for the harm they cause you.
Although the law seems firm and straightforward, the legal process for financial compensation is anything but.
Even if debt collectors have egregiously broken the law, they may still fight you when you file a lawsuit against them. Further, you may not even know your legal rights in the first place. You may believe that constant calls and harassment from a debt collector is something that you must endure because you owe money. However, the law is very emphatic that this is not the case.
Federal law does not allow debt collectors to call you whenever they want and as often as they choose. The law prohibits them from calling you repeatedly to harass you.
If they break the law, you can make them pay.
First, contact an experienced consumer debt protection attorney to learn about the law and to help you file a lawsuit against the debt collector. An attorney with experience in debt collection can guide you through the complex legal processes, protect your rights, and advocate for your best interests.
A consultation with a FDCPA lawyer costs you nothing. You may not even have to pay them anything if you win your case.
Why Do Debt Collectors Want to Harass You?
Debt collectors are financially motivated to use shameless, shady tactics, and even violate the law.
The creditor you initially borrowed money from may have to write your debt off because accounting rules prohibit them from carrying it on their balance sheet for too long.
They find a willing buyer in the debt collector, who has likely paid them pennies on the dollar for your debt. If debt collectors manage to pressure or persuade you to pay your debt in full, they make a significant profit.
Debt collectors know the psychology behind what they do for a living. They understand that you are under immense strain when you owe money, and they want to do whatever is in their power to push you over the edge.
Accordingly, they may use outrageous tactics to deepen your despair. They want you to throw in the towel and pay them, even if you owe money to other creditors.
Debt collectors also know that you feel shame and embarrassment when speaking to someone about the money you owe. They realize the effectiveness of calling to harass you and may continue to contact you repeatedly. That feeling of pressure may worsen your mental health and make you comply with their demands.
Federal Law Prohibits Repeated Calls
A federal law called the Fair Debt Collection Practices Act (FDCPA) regulates how and when debt collectors may contact you. They are not allowed to call you repeatedly to harass or annoy you.
The law allows you to set limits on their contact, and you can even stop any calls by simply relaying that to the debt collector. Of course, you are better off putting this in writing by following up with a formal letter.
Do Not Engage in an Argument with the Debt Collector
It is important that you not try to argue with debt collectors. They may try to intimidate you or bait you into saying something that can weaken your case against them if you file a lawsuit.
Getting in a back-and-forth with debt collectors is a surefire way to maximize your stress and give them the effect they intend. They want you so aggravated that you will pay them in full to make them disappear.
You have leverage when negotiating with a debt collector, and you do not want to give it away because you fell victim to your own emotions. They may accept less money from you if you engage them in negotiations, but a full-fledged war with them will not help you.
Tell the Debt Collector to Stop Calling You
When you pick up the phone for the first time or two, you should tell debt collectors that you do not want them to call you. The law gives you control over when and how they contact you. You can even direct them to stop calling you altogether.
If you want to limit the times debt collectors can call you or tell them they can no longer call you when you are at work, that is your right. You can even inform them that they are no longer to contact you, but that may limit your options if you want to settle your debt for less than the amount you owe.
Do Not Block Further Calls
At the same time, it is best not to block the debt collector's number. Phone records are vital to your FDCPA lawsuit, and you must prove that the debt collectors broke the law.
You are in a solid legal position when you have the documentation proving they have tried to call you repeatedly
When you tell debt collectors that they can no longer contact you, or when you try to limit their ability to call you, you need to send them a written letter. A lawyer can send this letter by certified mail so you have evidence the debt collector received it.
The fact that the debt collectors called you repeatedly can show that they broke the law, but you also want documentation that you told them to stop so that it can make your case even stronger.
File a Complaint With the Relevant Government Agencies
You can also take action in the interim short of filing a lawsuit by lodging a complaint with government agencies that oversee the debt collector.
Let the Federal Trade Commission and the Consumer Financial Protection Bureau know about this conduct. The CFPB may investigate complaints and take enforcement action against debt collectors for breaking the law.
Filing a complaint with these agencies does not keep you from returning and filing your direct lawsuit against the debt collectors if they broke the law.
Since states may also have jurisdiction over the debt collector, consider filing a complaint with your attorney general. Some states, including California, have aggressive attorneys general who will protect consumers from illegal actions.
One primary reason to hire a debt collection lawyer is their understanding of laws and regulations surrounding debt collection. They know the FDCPA and other applicable laws, whose details can overwhelm an individual without legal knowledge. A lawyer with experience in debt collection will ensure the system treats you fairly throughout the process.
Contact a Consumer Debt Protection Lawyer to Discuss Your Case
If you have issues with a debt collector, contact a consumer debt protection attorney to learn more about your legal rights. You are likely beset by several financial problems with debt collectors and creditors.
Never contact a debt settlement agency because they will likely overcharge you for services you can do independently.
A consumer debt protection attorney can review your situation's specifics and advise you on what is best for you. They can help you take immediate action to stop the wrongful conduct. Then, they can assess your legal options for acting against the debt collector or anyone else who has violated your rights.
Filing a Lawsuit Against the Debt Collector to Obtain Compensation
If debt collectors harass you, they may exhibit the same conduct pattern with other debtors.
After all, debt collectors buy large tranches of debt and go to work to pressure people to pay them. Then, you can file a class action lawsuit of your own or join one. A class action lawsuit gives you efficiencies because many plaintiffs can band together and make a smaller case more significant.
Your Damages in an FDCPA Lawsuit
You can also file an individual lawsuit to recover damages.
For example, your productivity at work can suffer because you always have to answer the phone, and you may feel trapped and under constant stress. The debt collector's actions may cost you a job, and you have the legal right to get paid lost earnings for any money you did not earn. Then, you can also receive money for the emotional distress that their behavior caused.
Again, you are feeling powerless and besieged, and you can sustain mental health harm. You may have incurred expenses to treat this condition when the emotional distress is severe enough. Debt collectors must pay you for the economic and non-economic damages they have caused you.
Debt collectors will also need to make a one-time payment to you of up to $1,000 simply because they broke the law. You will not have to prove that you suffered other damages because of their conduct.
Debt collectors will also have to pay your attorney's fees and costs associated with the case as the law requires. Thus, you may get to keep your entire settlement or jury award, should you receive one.
The FDCPA does not provide for punitive damages, no matter how bad the debt collector's conduct. However, you may qualify for punitive damages under state law.
Each state has consumer debt protection laws, and many of these statutes go several steps further than the FDCPA.
Your consumer debt protection lawyer can advise you on the best place to file a lawsuit against the debt collector. They can review your case, identify potential violations, and develop a strategy to protect your rights.
Moreover, an attorney can represent you in court if necessary, providing you with the legal support you need during litigation.
It Costs You Nothing Upfront to Get Legal Help
A debt collector attorney will not require any upfront payment. Instead, they only get paid if they resolve your debt collection issue. This arrangement means they will work hard for the best possible outcome. They will work diligently to negotiate with the debt collectors, dispute inaccurate information, and explore legal options to protect your rights.
Not only does hiring a debt collector attorney cost you nothing out of pocket, but it can also save you money in the long run. These attorneys understand consumer protection laws and know how to hold debt collectors accountable for their actions. They can help you avoid falling victim to unfair or illegal debt collection practices and ensure you receive the respect and dignity you deserve.
Seek Relief, Call a Debt Collection Attorney Today
If you feel overwhelmed by debt collectors and unsure of your rights, you do not have to face this alone. A consumer protection attorney can manage your debt and protect your financial well-being. Reach out to a debt collector attorney today and take control of your financial future.