Common Phone Debt Collection Methods
Get familiar with some common debt collection methods used on the phone. The first step in getting back on your feet when dealing with a harassing debt collector can be understanding the tactics that are getting used against you. Here are five methods that unscrupulous debt collectors commonly use when aggressively pursuing payment. If a debt collector is using any or all of these methods, take good notes, with as much detail as possible - including time, date and frequency. You can not control what they do, but you can control how you deal with the situation.
1. Phone Call Harassment
Debt collectors sometimes pressure debtors using harassment. Harassing behavior could include: calls made before 8AM and after 9PM or times generally inconvenient to you based on your work schedule (nurses who work nights getting called in the morning, etc); calling your place of work and sharing information regarding a debt owed; and the use of obscene language and/or aggressively loud volume of voice.
Interested in learning more about how to stop collection calls? Learn more about debt collection defense and illegal debt collection practices.
Again, if you can, take notes of the time and content of each phone call. In some states, you can tape the phone calls; in others that might be illegal. Always remember you can request in writing that the debt collector stop contacting you by phone and only contact you by letter.
2. Calling Neighbors and Family Members
An unfortunately accurate cliche of unscrupulous debt collector activity is the contacting of neighbors and family in trying to collect a debt. But, just because it happens, doesnt mean that they can't be punished for it, depending on how they do it. Phoning a neighbor or family member to ask about your whereabouts or contact information is not an illegal practice. If they ask about more or reveal more, then that is another story. Even if the subject matter is OK, a collector cannot contact a particular family member or neighbor more than once, unless there is a strong reason to do so (e.g. they have reason to believe your address has changed).
To stop such activity, simply write a letter to the debt collector requesting that they not contact any third parties about you. Always keep a paper trail of communications to and from these debt collectors. This can be very useful should you decide to pursue action against any illegal activity that may be going on.
3. False Debt Collectors
Scammers are out there who try to take money from people by convincing them that they owe a fake debt. Their goal is to get you to pay money to them - their tactics are to get enough personal information to make that happen. These attempts are successful when they reach out to busy people who are behind on multiple accounts and are stressed out enough to assume that the debt being referred to is legitimate. Always ask for verification of the debt, including amount of debt, original creditor and addresses of collection agency and original creditor. These types of attacks are often working towards identity theft rather than collection of money directly - social security info and other valuable information is usually the target.
4. Threats
Debt collectors sometimes use threats to pressure people into paying a debt. These include threatening to: have you arrested; garnish your wages or bank accounts; and/or sue you.
It is a violation of the FDCPA for a debt collector to make threats that they do not intend to carry out, or cannot carry out. There is no such thing as debtor prison - it hasn't existed since the time long ago that Charles Dickens wrote about and if a debt collector threatens criminal action against you then you should smile and hope you got it on tape (if your jurisdiction allows it). Garnishment is not possible unless the creditor has a judgment against you and has it enforced through the courts, owing a debt on its own is not sufficient grounds to enable wage garnishment. Such threats, without the ability to carry them out, is against the law.
5. Contacting You Directly When You Are Represented by an Attorney
After informing a debt collector that you are represented by an attorney, that collector cannot contact you without express permission from your attorney (which he or she wouldn't give without permission from you). If and when a debt collector calls, simply provide them with your attorney’s name and contact information. Receive another call from them? Smile and take note of when they called, what they said and pass this information on to your attorney, because they are in violation of the FDCPA and their bar's ethical rules.