Francis Mailman Soumilas, P.C.

What Types of Debt Collection Practices Are Prohibited?

If you have an outstanding bill or you have fallen behind on your mortgage or credit card payments, you may be contacted by a debt collection agency. Whether you have lost your job, suffered a medical emergency, or you simply made some unfortunate financial decisions that caused you to accumulate debt, owing a substantial amount of money is stressful enough without being aggressively hounded by debt collectors. Although it is a debt collector’s job to recover funds that are in default or past due, there are certain types of debt collection practices that are not allowed.  In fact, there are laws that protect consumers from debt collectors who engage in illegal or harassing debt collection practices. If you believe that your legal rights have been violated by a debt collector, a lawyer experienced in consumer protection will assist you with the claims process.

What Should I Do if I Am Contacted by a Debt Collector?

If you have ever been contacted by a collection agency, you know how stressful it can be, particularly if the debt collector becomes threatening or aggressive. Too often, consumers who have been contacted by a debt collector fall victim to the intimidating tactics they often use. They believe that they are responsible for paying the debt, simply because they have been contacted by a debt collector. However, this is not always true. In fact, the first thing you should do if you are contacted by a debt collector is to confirm that the debt is valid. For example, if the debt is past the statute of limitations, it can no longer be collected.

According to the Fair Debt Collection Practices Act (FDCPA), debt collectors must provide the following information, in writing, within five days of contacting you about a debt:

If the debt is invalid or the statute of limitations has expired, you can dispute the debt by sending a certified letter saying that you are contesting the validity of the debt. A consumer protection lawyer can assist you with this process by reviewing the information, confirming the statute of limitations, drafting a letter to the collection agency, and managing all communication with the debt collector moving forward.

What Are Examples of Illegal Debt Collection Practices?

Although debt collectors have a job to do, they may not resort to unfair or abusive debt collection practices. According to the Bureau of Consumer Financial Protection’s annual report, close to 50 percent of people said that they were told to pay a debt that was not valid. In addition, 25 percent were charged with a debt associated with an identity fraud incident. Unfortunately, these debt collectors can be very convincing, and consumers who are not aware of their rights may pay the debt to avoid ruining their credit or having to deal with aggressive creditors. The following are examples of some of the most common debt collection practices that are prohibited by the FDCPA:

How Can I Prevent Debt Collectors from Contacting Me?

According to the Telephone Consumer Protection Act (TCPA), consumers who receive calls on their cell phones from debt collectors or creditors may file a lawsuit against the person or organization making the call if the consumer did not give consent to contact them on their cell phone. Companies that violate the TCPA may be liable for up to $1,500 in damages for each violation. You may also stop debt collectors from contacting you by writing a letter instructing the debt collector to terminate all communication. After receiving the letter, the debt collector may no longer contact you, except to notify you that there will be no further contact. It is important to understand, however, that just because you will no longer be contacted by the debt collector does not mean that you are not responsible for the debt. The creditor or the collection agency could still sue you if you fail to pay the debt.

If you have been harassed or your legal rights have been violated by a debt collector, you are urged to contact the office of Francis Mailman Soumilas, P.C. We will thoroughly investigate the details of your claim, ensure that your legal rights are protected, and secure the best possible settlement outcome.  Call us at 215-735-8600 or contact us online today to schedule a free consultation. With offices located in Philadelphia, Chicago, New York, and San Francisco, we serve clients nationwide.