Debt Collector Harassment: What Indiana Consumers Should Know

By: Brittany Munn

Receiving calls or letters about a debt can be stressful, particularly when you do not recognize the debt, disagree with the amount being claimed, or feel that a collector is using pressure or intimidation to make you pay.

Debt collectors are permitted to contact consumers about legitimate debts, but there are limits on how they may attempt to collect them. The federal Fair Debt Collection Practices Act (FDCPA) prohibits certain abusive, deceptive, and unfair debt-collection practices and gives consumers rights when dealing with covered debt collectors.

If you are receiving collection calls, letters, text messages, or other communications, it is important to understand those rights and preserve a record of what is happening.

Repeated or Threatening Communications May Cross the Line

A debt collector does not necessarily violate the law simply because it contacts you more than once. However, the FDCPA prohibits conduct intended to harass, oppress, or abuse a consumer in connection with collecting a debt.

Depending on the circumstances, problematic conduct may include repeatedly calling with the intent to annoy or harass, using obscene or abusive language, threatening violence or harm, or making threats about consequences the collector cannot legally impose. Collectors also cannot falsely threaten legal action that they do not actually intend or have the legal ability to take.

If collection communications become excessive, threatening, or abusive, keep records of what was said, when the communication occurred, and who contacted you.

There Are Limits on When and Where a Debt Collector Can Contact You

Debt collectors do not have unlimited discretion to contact consumers whenever or wherever they choose. Generally, a debt collector may not contact a consumer at a time or place that it knows, or should know, is inconvenient. Under federal law, communications before 8:00 a.m. or after 9:00 p.m. in the consumer's local time are generally presumed inconvenient unless circumstances indicate otherwise.

Workplace communications may also present issues. If a debt collector knows that an employer prohibits personal collection communications at work, continuing to contact the consumer there may violate federal law. Consumers should document communications that occur at unusual hours, at work, or after they have told a collector that a particular method, time, or place of communication is inconvenient.

Do Not Assume You Owe a Debt You Do Not Recognize

Sometimes the first indication of an alleged debt is a collection call or letter from a company the consumer has never heard of. That does not necessarily mean the debt is fraudulent. Debts can be transferred or sold to third-party collectors, meaning the company contacting you may not be the original creditor. But you should not assume that a debt is valid simply because someone demands payment.

If you do not recognize a debt, consider requesting information sufficient to identify the debt and the creditor before making a payment or acknowledging that you owe it.

The FDCPA provides consumers with certain rights to dispute debts and obtain information regarding the debt. Acting promptly can be important because some of those rights are tied to specific time periods after receiving the collector's initial notice.

A Debt Collector Cannot Misrepresent What You Owe

Debt collectors are prohibited from using false, deceptive, or misleading representations when attempting to collect a debt. This can include misrepresenting the amount or legal status of a debt or attempting to collect interest, fees, charges, or other amounts that are not authorized by the agreement or otherwise permitted by law.

If the amount being demanded does not match your records, do not simply assume the collector's number is correct.

Compare the collection notice with account statements, payment records, correspondence with the original creditor, and any other documentation you have. If there is a discrepancy, preserve those documents and consider disputing the amount in writing.

Debt Collectors Generally Cannot Discuss Your Debt With Family Members or Employers

Consumers are often particularly concerned when collection activity begins involving other people in their lives. The FDCPA generally restricts debt collectors from communicating with third parties about a consumer's debt. With limited exceptions, a collector generally cannot tell your family members, friends, coworkers, or employer that you owe a debt.

There are circumstances in which a collector may contact another person for the limited purpose of obtaining location information, such as a consumer's address or telephone number. Even then, federal law places restrictions on what the collector may disclose and how those communications may occur.

If a family member, coworker, or employer receives a collection communication about you, document exactly what happened. Ask the person who received the communication to save any voicemail, letter, email, text message, or other record of the contact.

Document Collection Activity as It Happens

Good documentation can be extremely important when evaluating a potential FDCPA claim. Do not rely solely on memory. Collection activity may occur over weeks or months, and small details can become important later.

Consider keeping a collection log that records:

·      The date and time of each call or communication;

·      The telephone number or account used to contact you;

·      The name of the collector or collection company;

·      What the collector said or requested;

·      Whether threats or unusual statements were made;

·      Whether you told the collector that the time, place, or method of communication was inconvenient; and

·      Whether anyone else was contacted about the debt.

Save collection letters, emails, text messages, account statements, voicemails, and screenshots of call logs. If you send a written dispute or other correspondence, keep a copy of what you sent along with documentation showing when and how it was sent. The more complete the record, the easier it may be for an attorney to evaluate what occurred and determine whether the collector's conduct potentially violated federal law.

Do Not Ignore Court Documents

Even when you believe a debt is incorrect or believe a collector has violated the FDCPA, do not ignore a lawsuit, summons, or other court document.

A debt collector's potentially unlawful conduct does not automatically make a collection lawsuit disappear. If a creditor or collector files a lawsuit and the consumer fails to respond within the applicable deadline, the plaintiff may seek a default judgment. A judgment can create consequences beyond the original collection calls and letters and may give the judgment creditor additional legal remedies.

If you receive court documents regarding a debt, note the date you received them and speak with an attorney promptly. There may be defenses available, but those defenses generally need to be raised through the court process rather than by simply refusing to communicate with the collector.

When Collection Activity Becomes a Legal Issue

Not every unpleasant interaction with a debt collector constitutes an FDCPA violation. Debt collectors generally have the right to pursue legitimate debts using lawful collection methods.

But consumers also have rights.

Repeated harassment, improper threats, inconvenient communications, inaccurate representations about a debt, and improper disclosure of debt information to third parties may warrant closer examination.

If you believe a debt collector has crossed the line, preserving the communications and speaking with an attorney can help you understand whether the conduct may violate the FDCPA and what options may be available.

Eques Law Group represents consumers facing debt-collection and other consumer-protection issues. If you are experiencing questionable collection activity in Indiana, an attorney can review the circumstances, evaluate potential claims or defenses, and help you determine the appropriate next step.

To schedule a consultation, call 1-844-MY-EQUES or visit www.eques.law.