If you’ve ever been contacted by a debt collection company, you might know the particular combination of dread and shame these calls can elicit. Often it seems the easiest choice is just to pay up and avoid any more calls.
Of course, paying your debts is both the moral and legal thing to do. But that does not give debt collection agencies free rein to behave however they choose. Debt collectors have their jobs down to a science, and they excel at making their targets feel guilty about the money they owe and feel afraid of the consequences — and sometimes they go too far.
The Federal Trade Commission this month added four debt collection companies to its so-called Hall of Shame, a list of more than 100 collectors whose practices have caused US courts to ban them from doing business. One group, Premier Debt Acquisitions, was accused of impersonating law enforcement officers, threatening debtors with arrest, and withholding information about the money its targets allegedly owed.
Faced with the possibility of such tactics, it is vital that consumers know their rights. First, the basics: Federal law prohibits debt collectors from contacting you before 8 a.m. or after 9 p.m., unless you have given them permission to do so. Collectors also are obliged to stop contacting you if you request that in writing.
Collectors may not lie by telling you they work for law enforcement, that you have committed a crime, or that you owe more or less than you actually do. They may not threaten you with arrest, use profane language, or send you documents that look misleadingly official. In most cases, they also are not allowed to charge any fees beyond the debt you owe.
If you have any doubts about whether you owe the money, insist that the collection company provide you with verification. Several of the FTC’s banned collectors were accused of making up debts altogether, coercing targets into paying debts they never incurred.
If you think your rights have been violated, contact the FTC, your state attorney general’s office, and the federal Consumer Protection Bureau.
Have a consumer question or complaint? Reach Sarah Shemkus at seshemkus@gmail.com.
