Advice If You're Being Harassed by Collection Agent
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- Know your rights under the Fair Debt Collections Practices Act.
- Take the right steps to stop debt collector harassment.
- Pursue legal action, if you have been the victim of illegal debt collections practices.
- Start your FREE debt assessment
Are debt collectors allowed to lie about why they are contacting someone?
Are debt collectors allowed to lie? I just got a call from Northland Group. They asked for me and said the reason for the call was to verify me as a personal reference for someone I had never heard of. This seems like a shady technique and I'm wondering if it is legal.
Third-party debt collectors or collection agents pursue payments on debts owed by individuals or businesses. Collections agents may work on behalf of a creditor, or may purchase the account receivable from the creditor for a fraction of the account's face value.
Fair Debt Collections Practices Act
All third-party collection agents are regulated by a federal law called the Fair Debt Collections Practices Act. When an original creditor has a department or group that functions as a collection agent the original creditor becomes bound by the provisions of the FDCPA. Also, in Texas, New York, and California, all original creditors at all times are bound by the FDCPA.
The FDCPA states, among other things, that collection agents may not make false or misleading statements while attempting to collect debts. To learn more about your rights under the FDCPA, I encourage you to visit the Federal Trade Commission FDCPA FAQ.
After learning more about your rights as a consumer, if you believe the collection agent who contacted you is violating the FDCPA, you may wish to file a complaint with the Federal Trade Commission and your state Attorney General's (AG) consumer protection office. To find contact information for the AG's office in your state, see the National Association of Attorneys General list of AGs.
Once you file a complaint with the AG's office, the AG's staff will contact the collection agency to notify the company of your complaint, and what action you want the agency to take to resolve your complaint. Filing complaints against the collector will likely stop the telephone calls you have been receiving. Depending on the seriousness of the allegations, the collector may also be willing to forgive all or a portion of the debt claimed in order to settle your complaints.
Filing a Lawsuit Against a Collection Agent
In addition to filing complaints against the collection agent for violating the FDCPA, you may have a "cause of action" to file a lawsuit against the company. A cause of action is a reason under the law to file a lawsuit. I frequently see consumers file claims successfully for statutory damages allowed by federal law.
If you are interested in pursuing legal action against the collection agency, I would encourage you to consult with a consumer rights attorney licensed in your state who can review your case. If the attorney thinks a viable case exists, he may be able to help you in filing a lawsuit against the collector for damages caused by its illegal collection activity. The National Association of Consumer Advocates will help you find a consumer rights attorney in your area who can assist you in pursuing legal action against this collection agency, if you choose to do so.
Cease Communication Demand Letter
If your primary goal is to stop the phone calls you are receiving from collectors, you may be better served by simply sending a written cease communication demand letter to the agency. Under the provisions of the FDCPA, a debt collector is required to stop calling you (with very limited exceptions) if you notify the agency in writing to cease communications.
For an example of a cease communication (a.k.a., cease and desist) letter, see the Bills.com debt self-help center. If you decide to send a cease communication request, I encourage you to use certified mail, return receipt requested; this will provide you proof that your letter was received in case the collector continues to call and you need to take further action against the agency.
In many cases, sending a C&D letter will end the collection calls, so you may find that no further action is needed on your part. However, if you do continue to receive collection calls, you may need to take further action such as filing complaints and/or legal action, as outlined above.
Resolve the Debt
Federal law provides you with a significant protection against abusive collection tactics by debt collectors. That said, stopping collection calls does not make the underlying debt go away. I encourage you to visit the Bills.com Debt Help page to read more about the various debt relief options available to consumers who are struggling with debt.
I wish you the best of luck in resolving this debt, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
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Struggling with debt?
Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q1 2024 was $17.69 trillion. Auto loan debt was $1.62 trillion and credit card was $1.12 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
The amount of debt and debt in collections vary by state. For example, in Wyoming, 24% have any kind of debt in collections and the median debt in collections is $2680. Medical debt is common and 17% have that in collections. The median medical debt in collections is $1515.
Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.
10 Comments
I recommend that you speak with an attorney who specializes in cases involving violations of the Fair Debt Collection Practices Act.
You mentioned a summons. A summons is used when one party wishes to give notice to another party of a civil lawsuit.
You mentioned a payday loan. See the Bills.com payday loan laws page to learn more about your state's payday loan laws, and the Bills.com Fair Debt Collection Practices Act page to learn more about your rights under federal law.
hey guys I've recently got a letter from speesy cash. Then I've claimed It was Fraudulent and then they told me to get a police report etc. Did that and then later I got a mail saying I need to pay them. And I contact them again and they said they haven't gotten a report. So after that I contact they officer again and he sent them again to their fax. And then couple weeks they hired Ad Astra to collect! And this happened during the start of this COVID 19 stuff. I'm 25 years old and I finally cleaned my first and last debt just to get another one. Any advice and help I can get? This really stresses me out.
Jason, I am not a lawyer so whatever I share is not to be taken as legal advice.
When you first got somehting in the mail, a good step would have been to validate the debt. I am not sure how long ago your were notified by mail.
I don't know what evidence they haveor the size of the debt that they say you owe, but if you didn't take out the debt and filed a police report about identity theft I think it makes sense to fight this.
Go to identitytheft.gov and make sure you followed all the right steps. If they sue you, seek a consultation with an attorney.