By Terri Crow and Lavonne Tubbs-Sallisaw
CN Commerce Department

If you are overwhelmed by debt, the terms “debt collection” or “debt collector” may be enough to cause great stress. However, knowing how to deal with debt collection practices will enable you to negotiate debt repayment without feeling intimidated.

Knowledge is power. Knowing the law will prevent collectors from using dishonest tactics and enable the consumer to make wise decisions when dealing with creditors. 

A common reason that debt collection is often nerve-racking is due to the attitudes of the debt collectors, who are often rude. Many times the consumer feels harassed and forced to make unwise decisions in order to end the harassment. 

These types of illegal practices prompted the federal government to pass laws which govern how debt can be collected.

The Fair Debt Collection Practices Act governs who can collect debt and how debt can be collected. Many consumers do not know their rights under the law and therefore are frightened by unprincipled collectors who operate through fear tactics. 

Many debt collectors resort to harassing family and friends if they cannot reach the consumer. This “scare tactic” is often used by ruthless debt collectors who use family and friends to pressure the consumer into agreeing to the collector’s terms and conditions for repayment. 

Under the FDCPA, a collector can only contact relatives or friends in order to find out where the consumer lives. 

It is common for consumers to feel the pressure of debt when collectors phone early in the morning and continue until late into the evening. This persistent contact causes the consumer to feel depressed and hopeless if there is no way to repay the debt. The FDCPA specifies such treatment of the consumer is not appropriate.

The FDCPA states that without prior consent the collector cannot speak to the consumer before 8 a.m. and after 9 p.m. The law further states the consumer has the right to “cease communication” with the creditor. Upon written request, the debt collector must cease further communication with the consumer except to let him know that the debt collector’s efforts are being suspended or that a specific remedy is being invoked. 

The FDCPA states harassment by debt collectors is unacceptable. It is illegal for a debt collector to “engage in any conduct...which is to harass, oppress, or abuse any person in connection with the collection of debt.” Harassment includes threats, cursing, listing the consumer’s name on a public list, advertising debt, repeated telephone calls and calling without identifying who the collector is.

The FDCPA also governs the amount of interest, fees and charges a debt collector can charge the consumer. 

If a consumer feels they are being harassed by a debt collector, remind the collector they are breaking the law and that they will be reported to the Federal Trade Commission.

Negotiating with creditors is never fun, but knowing the law enables the consumer to protect themselves against unfair or deceptive collection practices. Then the consumer can evaluate a repayment strategy that fits their budget.