FTC Reporting Abusive Debt Collection Tactics
The FTC has received more than 45,000 complaints about debt collectors in the first half of the year, up almost 20% compared to the first six months of 2008. Debt collection agencies have been under more scrutiny in the last year than ever before.
If you are like many other Americans who have fallen behind on their bills, it is possible that you have experienced some of the newest debt collection threats. The common debt collection tactics range from unending phone calls (collection agencies are limited to three calls per week per customer), to threats of liens and property seizures. Collection agencies are raising the level of customer harassment. The FTC has reported a large number of consumer complaints against collection agencies that reveal their criminal tactics.
Gone are the days of the nuisance phone call. When you hear from a collection agency today you could hear threats that range from arrest to threatening to take away your children. Some agencies have even tried to collect non-existent debt or have posed as law enforcement officers.
Frightened consumers often authorize withdrawal from their checking account or send cash to the agency in an effort to stop collection agencies from following through on these threats. The best defense against scare tactics is in researching your rights as a U.S. consumer and understanding in detail what these companies are really allowed to do.
- Collection agencies have no authority to arrest you. That requires a court order. Non payment of consumer debt is a civil, not criminal matter.
- Wages can only be garnished if the creditor has won a judgment against you in a filed lawsuit.
- Unless relevant debt is secured by your home with a mortgage or home equity loan, the collection agency has no authority to seize your property.
Guidelines established by the Federal Fair Debt Collection Act are clear for these agencies. One notable guideline most consumers are unaware of is that if a consumer notifies a debt collection agency (in writing) that they refuse to pay the debt or that they want the communications to end, the agency is required to end all communications. Knowing your rights can save you time, effort and possibly a good sum of money.
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