Stop Harassing Phone Calls from Creditors

Phone calls are often the first step a creditor takes in pursuing an outstanding debt. Some companies handle their own collections while others sell debts to third-party collection agencies or law firms who then contact debtors directly. Whether you actually owe the money in question or not, it's important to understand what to do to put a stop to aggressive collection practices. In the United States, the Fair Debt Collection Practices Act (FDCPA) outlines what debt collectors can and cannot do to collect a debt and puts the power of stopping the calls in your hands.

Steps

Confronting the Creditors

1. Identify collection agencies. If you don’t answer the phone and wonder if it may be a collector calling, search the Internet for the phone number that comes up on your caller ID. Although collection agencies are required by law to send you a letter within 5 days of their first contact with you, not all of them comply. Looking up the phone number can serve as an alternate way of obtaining a mailing address so that you can contact them in writing.
2. Know your rights. There are certain behaviors that, under the Fair Debt Collections Practices Act, are illegal for collectors to engage in. If they are doing any of these, make note of the date/time of the infraction and include it when you right them a letter (see below). These infractions are:
   • Calling you before 8:00 a.m. or after 9:00 p.m. or contacting your employer, neighbors, or family members about your debt. They may contact these people to locate you but not to discuss your debt.
   • Calling you at work, calling you repeatedly, or failing to disclose the identity of the collector for whom they are calling.
   • Engaging in deceptive conduct such as making false claims or statements including claiming to be an attorney or claiming that you committed a crime, that they work for or operate a credit reporting agency or that they represent a governmental agency, stating incorrect balances owed, etc.
   • Publishing your name, sending you anything that looks like an official governmental or court document if it isn’t, or using any symbols or language on written communications, envelopes, or postcards that show the sender as a debt collector or an entity involved in the debt collection business.
   • Threatening violence or arrest, loss of child custody or welfare benefits, lying, or using profanity.
3. Answer the phone. It may be tempting to simply ignore the phone calls, but creditors will generally continue to call until the issue is resolved. Worse, if they can't reach you, they may resort to contacting your relatives or associates instead.
4. Set boundaries. Remember, debt collectors cannot legally call you at work or call a relative or other third party if you tell them not to. Be sure to state this in your very first conversation with them.
   • Follow up with a letter confirming what you told them on the phone. Include the day and date and send it via a service that provides tracking and proof of delivery.
   • If you have an attorney representing you, provide the attorney's contact information. Once you've done so, they can only contact you through your attorney.
5. Be honest. If you can't pay the debt, say so. Briefly explain why (for example, tell them you've lost your job or are sick), and explain when you expect to be able to discuss it. Being forthright and reasonable often reduces the number of phone calls and may stave off a lawsuit.
6. Communicate in writing. If you believe that you do not owe money, write the creditors a letter saying so within 30 days of the first time they contact you. Once the creditors receive the letter, they cannot continue to call you to collect the debt unless they can prove that you owe the money. If you do owe money to the creditors, offer to work out a payment plan in writing, and ask that they not contact you by phone anymore.
   • After receiving your letter they may contact you for three reasons:
   • To acknowledge receipt of your letter.
   • To tell you their efforts have ended.
   • To tell you they are suing you.

Solving the Problem Permanently

1. Offer a settlement. If your debt has been sold to a third party, it's likely the party purchased it for a small percentage of the total amount owed. The third-party may settle for a smaller lump-sum payment to avoid the cost of suing you to recover the money. Even if the debt is still held by the original creditors, you might be able to negotiate a similar settlement.
2. Consult an attorney. If you have multiple outstanding debts, you may consider getting legal advice to understand whether bankruptcy or other options are best for you. You can also hire the attorney to handle the problem for you, and if you know they have violated FDCPA laws, an attorney can help you raise legal claims.
   • Attorneys can get expensive so be very sure you want to do this. Usually merely sending the letter will suffice. If, however, things get out of hand, many attorneys will either provide a free consultation or a minimal charge for one to help you decide what path to take.
3. File an administrative complaint. If a creditor is harassing you and taking reasonable steps to stop the harassment isn't working, file a complaint with the Federal Trade Commission.
4. Declare bankruptcy. This is really Defcon 1 and should only be considered when your financial situation is grave. As a bankruptcy will stay on your credit report for 7-9 years, it will have a rather lasting effect on your credit and your ability to secure loans, some employment, and a mortgage.
   • Creditors are required by law to stop contacting you immediately after your filing. In order to contact you they must get approval from the court, which the court will not grant to creditors representing unsecured debt.

Suing the Creditor

1. Hire an attorney. If you have not already done so, now is the time to hire an attorney because you are about to file a lawsuit. There are attorneys out there who specialize in debt collection law. While these types of cases can be difficult to win, if you are successful, you and your attorney may be able to collect attorneys' fees.
   • To find a capable attorney, call your state bar association and ask about a referral. You can also check your state's bar website for information about attorneys in your area. Also try asking friends and family if they have any names they could pass along.
2. Find a law that has been violated. If you are being pursued by a debt collector and you have exhausted all other remedies (e.g., offered a settlement, filed an administrative complaint, or declared for bankruptcy), you might want to consider filing a lawsuit against the person or company trying to improperly collect from you. Before you can file a lawsuit, the debt collector must have violated some law. Generally speaking, harassing debt collectors will either be violating the federal FDCPA or a similar state law. For example, California has a law regarding debt collection practices called the Rosenthal Fair Debt Collection Practices Act (RFDCPA).
   • The FDCPA is violated when a debt collector calls you with the intent to harass, annoy, or abuse you. Furthermore, a debt collector can violate the FDCPA by simply calling and not disclosing their identity.
   • The RFDCPA may be even more protective of your rights and may be violated when a debt collector does not correctly identify themselves, causes you to incur long distance charges, causes the phone to ring repeatedly for the purpose of annoying you, or when they call you so often that it becomes harassment.
3. Choose what court you will file your suit in. When you choose to file a lawsuit, your first task will be to choose what type of court to file in. If you are suing someone under the FDCPA, you can file in either state or federal court. If you are suing someone under the RFDCPA, you will have to file your case in state court.
   • If you file in federal court, you will have to file in a district court with jurisdiction over your case.
   • If you file in state court, you will file in a trial court having jurisdiction over your case.
4. Write a complaint. Once you have chosen where to sue, you will have to talk to your attorney and put together a complaint. A complaint will describe your injuries and explains how the defendant caused the harm. The complaint will also lay out why the court has jurisdiction over the case and the relief you are seeking.
   • If you are filing under the FDCPA, you can seek the following relief:
     • Any actual damages sustained by you;
     • Additional damages up to $1,000; and
     • The cost of the action, which includes reasonable attorneys' fees.
   • If you are filing under the RFDCPA, you can seek the following relief:
     • Any actual damages sustained by you;
     • Additional damages up to $1,000 if the debt collector willfully and knowingly violated the law; and
     • The cost of the action, which includes reasonable attorneys' fees.
5. File your complaint. Once you and your attorney have written the complaint, you will file it with the appropriate court. To file the complaint, you will take it to the courthouse and hand it to the clerk of courts. They will stamp an original and give you copies. Keep one copy for yourself and keep another one to serve on the other party.
6. Pay the filing fee. When you file your complaint, you will be required to pay a filing fee. The fees will differ depending on each state and also whether you file in federal court. Check with the appropriate court regarding their fees.
   • If you cannot afford to pay the filing fees, you may be able to get a fee waiver. In state court, you will file a fee waiver form stating the reasons you are unable to pay (e.g., no income or all your income goes to pay for basic necessities). In federal court you can request to proceed in forma pauperis. If this request is granted your fees will be waived.
7. Serve the other party. Once you have completed your filing requirements, you will have to serve the other party with your complaint. Usually the sheriff or another competent person over the age of 18 will serve the other party by physically handing the complaint to them. Once this has taken place, your server (i.e., the person who served the other party) will fill out a form stating that the party was actually served.
8. Consider a settlement. At this point, depending on how strong your case is, the debt collector may want to discuss a settlement with you. If they make you an acceptable offer, or if you make them an offer they accept, then you should execute a settlement agreement and end the dispute. This process may take time and may include various negotiations and discussions. However, in the long run, if you can settle before going to trial, your costs will be lowered and your time commitments will be lessened.
9. Take part in discovery. If you and the other party cannot come to a settlement, the court process will resume and you will start the discovery phase. During discovery, each party will provide information about their case to the other party. This information might include the identity of witnesses and copies of documents related to the case. Discovery might also include depositions, where important witnesses may get called in to answer questions about the case before trial.
10. Go to trial. At trial, your attorney and the other attorney will present evidence to the judge and possibly a jury. The attorneys will have an opportunity to call witnesses to testify and can enter physical items into evidence so long as they meet certain evidentiary standards. In a civil case such as this, you may be called to testify about the harassment by the debt collector. If you are called as a witness, answer questions honestly and do not provide details that are not asked for.
    • At the end of the trial, the judge (or jury) will decide your case. If the court rules in your favor, you will be granted an award. If you lose, you should talk to your attorney about the possibility of an appeal.

Tips

• Remember, your debt is an emotional issue for you but it’s just business for them. Figuring out a win-win scenario and offering it is your best bet to stop the calls.
• Establish a rapport with the agency calling you. By being open and honest, the calls can quickly and easily dissipate.
• The person calling you has a life and family too and is just doing their job. If they are being kind and considerate, return the favor. It can alleviate a lot of the stress and calls.

Warnings

• Do NOT lie and pretend to be another person saying that you do not live there or are dead, or have another person lie and tell the agency you do not live there or are dead. To do so is FRAUD under federal law. Creditors, collection agencies, and investigators can very easily determine if such a statement is false. Since collection calls are often recorded, the lie will be recorded, and when coupled with evidence of the contrary, this is enough to obtain a conviction. Even if you have no criminal record, this can result in a sentence of up to 15 years in federal prison!

Sources and Citations

See also

• Avoid Saying "Yes" to Coming to Work When Called In
• Handle a Bomb Threat over the Telephone
• Get Rid of Unwanted Calls on Your Cell Phone
• Stop Unwanted Phone Calls
• Make Up an Excuse to Get Off the Phone
• Stop Collection Calls
• Deal With Abusive Phone Calls
• Finish a Phone Conversation Without Being Rude
• Handle an Irate Customer on the Phone
• Tell if Someone Is Ignoring Your Calls and Decide What to Do About It

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