Report Creditors: Know Your Rights And Take Action

If you are being harassed by a creditor, there are several things you can do to stop them. Creditors are not allowed to contact you at any time or place, and they are also not allowed to use abusive, unfair, or deceptive practices when collecting debts. If you feel that a creditor is harassing you, you can collect evidence of the harassment, such as recording the number of calls or visits, and then complain to the creditor directly. If that does not resolve the issue, you can report them to a government agency, such as the Federal Trade Commission (FTC) or the Consumer Financial Protection Bureau (CFPB). You also have the option to sue a creditor in court if you believe they have broken the law. It is important to know your rights and how to protect yourself when dealing with creditors.

Report to the Federal Trade Commission (FTC)

If you believe a creditor is breaking the law, you can report them to the Federal Trade Commission (FTC). The FTC is the nation's consumer protection agency, and it collects reports about companies, business practices, identity theft, and violations of the National Do Not Call Registry.

The FTC has eight regional offices across the United States, in addition to its offices in Washington, DC, allowing it to respond effectively to diverse consumer issues. The FTC takes action against fraudulent and unfair business practices, including those of creditors.

You can file a complaint with the FTC if you believe a debt collector has not sent written notice of the debt within five days of initial contact. Most individuals who complain about written notifications say they either didn't receive enough information to identify and confirm the debt or that their right to dispute the debt was not included in the notice.

Additionally, if a debt collector is harassing you with repeated phone calls, using obscene language, or making false statements, you can document this behaviour and report it to the FTC.

To file a complaint, you can visit the FTC's official website, ReportFraud.ftc.gov, or contact the Consumer Response Center by calling 1-877-382-4357. It is important to note that the FTC will never demand money, make threats, or promise you a prize.

The FTC takes consumer protection seriously and has the power to ban parties from participating in debt collection if they are found to be violating the law. By reporting creditors who break the law, you can help protect yourself and other consumers from unfair and abusive practices.

File a lawsuit against the creditor

If a debt collector is harassing you or violating federal law, you can take steps to address the issue. One option is to file a lawsuit against the creditor in state or federal court. Here are the steps you can take to file a lawsuit:

Send a "Stop Contact" Letter

Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request that a collection agency employee ceases all communication with you. You can send this letter by mail, return receipt requested, or electronically using any means of electronic communication that the collector uses to accept communication from consumers. Keep a copy of the letter for your records.

Stop Certain Types of Collection Contacts

If you don't want to cut off all contact with the collector, you can request that they stop contacting you in certain ways. Under the FDCPA, you can stop communications through a particular medium, such as phone calls, emails, or text messages. You don't have to put this request in writing; you can simply tell the collector to stop contacting you in a specific way.

Make the Collector Validate the Debt

The FDCPA requires debt collectors to provide you with a written or electronic debt validation notice within five days of their initial contact with you. You can request that the collector verify the debt by sending a letter within 30 days of receiving the debt validation notice. This will stop collection contacts until the collector sends you more information.

Hire a Lawyer to Represent You

If the collector continues to contact you even after you have sent a "stop contact" letter, a letter from an attorney will usually stop the harassment. Debt collectors must stop contacting you once they know you are represented by an attorney. An attorney can also represent you in court if you decide to sue the collector for legal violations.

Document Any Illegal Behaviour

If a debt collector breaks the law, it is important to document the violation as soon as it happens. Start a log that details what happened, when it happened, and any witnesses to the incident. If allowed by your state laws, try to record phone conversations with the debt collector without their knowledge.

File a Lawsuit

You can represent yourself in small claims court or hire a lawyer and go to regular court. If you win the case, you may be entitled to recover any actual financial losses you suffered due to the collector's actions, as well as an additional amount of up to $1,000 for any violation of the FDCPA.

Contact a consumer law attorney

If you believe a creditor is breaking the law, you may want to contact a consumer law attorney. These attorneys can help you understand your state and federal rights and advise you on what your next steps should be.

To find a lawyer, you can try the following:

• Contact a lawyer referral service in your area
• Find lawyer referrals in your area by checking the American Bar Association website or your state bar association
• Identify state-based legal aid programs for low-income consumers
• Consult your local JAG office if you're a servicemember
• Ask people you know to suggest attorneys they've worked with in the past
• Get a referral from an attorney you know or have worked with before

When seeking legal representation, it's important to ask the attorney questions to assess their understanding of consumer law. Here are some questions you can ask:

• How much of your work involves consumer law and representing consumers?
• How many cases like mine have you handled before?
• Do you charge an upfront fee?
• Will I have to pay even if I lose my case in court?
• If I can't afford to hire you, can you refer me to a consumer law attorney who may not charge upfront fees?

Before hiring an attorney, check your state bar organization to ensure they are in good standing. You can also ask the attorney questions about their experience and how they can help with your specific case.

Complain to a professional body

If you feel you have been treated unfairly by a creditor or debt collection agency, the first thing to do is collect evidence of any harassment to support your claim. This can include call logs, letters, emails, and messages. It is also important to note down when you send and receive letters, as this will be useful evidence to substantiate your complaint.

You should contact your creditor directly before seeking advice from a professional body. If your debt has been sold on and you are being treated unfairly, you should contact the company that purchased your debt.

If the harassment persists, you can contact the Financial Ombudsman Service (FOS) and outline what has been happening. You should provide evidence to support your case. The FOS may be able to help, but you can also ask your local Trading Standards office for advice.

You can also complain to the Consumer Financial Protection Bureau (CFPB) if you have an issue with a debt collector. After you submit a complaint, the CFPB will work to get you a response, typically within 15 days. You can also file a complaint with the Federal Trade Commission (FTC), the federal agency that oversees collection agencies. You can submit an online complaint with the CFPB at www.consumerfinance.gov/complaint.

Complain to the creditor

If you believe a creditor is breaking the law, you can complain to the creditor directly. Here are some steps you can take:

Understand your rights

Before complaining, it is important to understand your basic rights and the laws that protect you. In the United States, the Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from unfair collection practices by third-party debt collectors. The FDCPA prohibits debt collectors from engaging in abusive behaviour, such as:

• Repeatedly calling or contacting you at unreasonable times or locations, such as your workplace
• Using obscene or profane language, or threatening violence
• Claiming you owe more than you do
• Impersonating attorneys or government officials
• Threatening to seize your property or take legal action without the authority to do so
• Contacting third parties about your debt, except to ask about your whereabouts

Document the violation

If a debt collector breaks the law, it is important to document the violation as soon as it happens. Keep a log of what happened, when it happened, and who witnessed it. If possible, have another person present or on the phone during future communications with the collector. In some states, you may even be able to record phone conversations without the collector's knowledge.

Contact the creditor

The first step is to write to the creditor and explain your concerns about their behaviour. Let them know that you are aware of the relevant laws and consumer protection regulations, and that you will consider making a formal complaint if their behaviour does not change. It is helpful to keep a diary of all phone calls, letters, and visits from the creditor. You may also want to politely refuse any further contact with the collector until the issue is resolved.

Seek further assistance

If writing to the creditor does not resolve the issue, you can seek further assistance from various organisations. In the US, you can contact the Consumer Financial Protection Bureau (CFPB) and file a complaint. You can also contact a consumer law attorney, who may be able to help you sue the debt collector or creditor for violations of the FDCPA. Additionally, you can reach out to your state attorney general's office for guidance on possible legal actions.

Frequently asked questions