If you are in financial distress, it is likely that debt collectors are calling you regularly. Or maybe opening the mail is too hard to face. In responding to debt collectors, remember that you have rights and deserve to be treated with respect, even if you are behind on your obligations.

There are really only three things a debt collector can do to you if your debt is unsecured. They can stop doing business with you; they can report you to a credit agency; and they can start a lawsuit (See: When Debt Collectors Sue). There may be consequences if a lawsuit is won and a judgment entered your wages could be garnished and other collection activity could take place. But many people have no assets to collect from; sometimes, we call them judgment proof. The fear of a judgment may be worse than its actual effects.

If your debt is secured by your house, your car, or other household property, the creditor may have the right to repossess these assets and sell them to repay their debt. Dealing with secured lenders often will require the assistance of a qualified bankruptcy lawyer.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act, known as FDCPA, is a law to protect consumers from unethical debt collectors and lawyers. It does not apply to business debt, and it does not apply when a creditor, using its own name, is collecting its own account. Once a debt has been assigned to a collection agency, the law will apply.

Under the FDCPA, debt collectors and lawyers are required to respect your privacy. They are not allowed to use deceptive, abusive, or harassing tactics to collect a debt. In addition, the collection agency has duties to you under FDCPA.

• The collection agency or attorney must stop contacting you if you make the request in writing or if you dispute the debt in writing.
• The collection agency or collection lawyer must send you a written notice within five days of initial communication that explains your rights.

Even if you are not planning to file for bankruptcy protection, and even if you have not yet hired a lawyer to help you, you are entitled to be free from harassment. There are many specific things that debt collectors are not allowed to do. Some of these are as follows:

• With only a few exceptions, collection agencies are not allowed to communicate with relatives, neighbors, employers or coworkers, or friends about your debt without court permission.
• Collection agencies or collection lawyer may not call at unusual or inconvenient times. Usually, they are allowed to call only between 8:00 a.m. and 9:00 p.m.
• Contacting you at work if they know that you are prohibited from getting personal phone calls.
• Using obscene, derogatory or insulting remarks, including racially biased language.
• Telephoning repeatedly or too frequently.
• Making false or misleading statements to collect the debt, including telling you that you owe more than you do.
• Threatening arrest or loss of child custody.
• Saying they will sue you if they do not have any intent to sue.
• Depositing post dated checks before the date on the check.
• Failing to disclose that the collector is attempting to collect a debt.
• Threatening to take property when they have no right to do so.

Let Resolve Legal Help

In addition, once a collection agency or a lawyer knows that you are represented by counsel, they must stop contacting you. At Resolve Legal, we offer a free consultation to determine if you are a good candidate for bankruptcy protection or some other legal assistance. If you decide to retain us, you can immediately inform any collectors who call to call us instead. They must stop calling you once they have been informed you have a lawyer. If they do not stop, please keep a record of any additional calls you may have remedies available to you under FDCPA.

If you have experienced any of the impermissible collection actions above, keep a record. Leave a pad of paper and a pencil by the phone, and write down any such calls you receive and the name of the person calling. Save any written correspondence. Tell your lawyer what has happened to you, and we can help. You deserve no less.

Stopping Debt Collectors With or Without Your Lawyer's Help

Here are some ways you can stop unethical debt collectors. Some of these you can do on your own; for others, you will need help from a lawyer. If you have already been sued, follow this link to find out what to do when debt collectors sue [LINK TO PAGE]. Remember, you have choices about how you want to manage your financial life.

1. Call the creditor and ask for their help. Explain your circumstances and ask them for more time. Do not make any promises that you are not certain you will be able to keep. If they insist on hearing when you will pay, simply repeat, "I'm not sure when I will be able to make a payment. I don't want to promise you anything I'm not sure I can do."
2. Send them a written request to stop trying to collect from you, sometimes called a cease letter. In the letter, simply state that you cannot currently pay the debt, and that you request the collection agency stop contacting you. Again, do not make promises you can't keep.
3. Hire a lawyer at Resolve Legal or elsewhere to send a letter requesting that the collector stop its activities.
4. Negotiate an agreement with the creditor or the collection agency to make payments over time or some other work-out agreement. Often, a lawyer will be able to assist you in obtaining the best possible terms.
5. Make sure if you have a dispute about the bill, the collection agency, creditor, and attorney know what the dispute is about. Write a letter and include as much detail as possible.
6. Complain to a government agency, like the Washington State Attorney General's office.
7. File a lawsuit against the debt collector under the FDCPA or state laws governing collection agencies. If you have damages, like medical problems from the stress of debt collection or other damages, you may be awarded monetary compensation. Under FDCPA, some violations entitle you to payment of $1,000. You should consult a lawyer about whether you can sue the debt collector.
8. Bankruptcy will immediately stop all collection activity. At Resolve Legal, experienced bankruptcy lawyers will analyze your entire financial situation to help you decide if bankruptcy is the right course for you.

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