How to Handle Abusive Debt Collector

As per the FDCPA act, which regulates debt collection activities and behavior, too many debt collectors are poorly trained, formed and works in an industry with a very high turnover rate. Another reason for debt collectors using abusive and illegal tactics against debtors is that most of them know they will get away with their illegal tactics and behavior because

Most consumers are uninformed about debt collection laws;

It's hard to prove the behavior occurred and it's hard to prosecute it;

There is a legal loophole in the law that allows debt collection agencies who get into trouble to simply close their current operation and create a new company and identity, and thus avoid any existing injunctions and continue to operate in the same manner.

How to stop debt collector from harassing you?

Find out if the collector is violating the FDCPA or your state's laws. If so, send the collector a certified letter, return receipt requested, telling them that you believe he is in violation of the FDCPA or your state's laws; and,

If you want you can file a complaint online at www.ftc.gov. The FTC is the body in charge of regulating debt collection agencies. They will not handle your case personally, but you should report the agency anyway, since they will sanction the agency if it receives enough complaints from consumers.

Report the activity to your State Attorney General's office. They will investigate the matter.

You can also gather evidence by recording phone conversations with the debt collection agency. If you can prove the debt collector used illegal tactics, you can sue for damages under the FDCPA.

Is it possible to do debt collection over the phone?

Yes, but within limits. A debt collector cannot call you before 8 a.m. and after 9 p.m. unless you agree. Call you repeatedly or use the phone to harass you. Use obscene language, make negative comments about your character, or make religious or ethnic slurs.

Can a debt collection agency threatened to sue you?

A collection agency can file a lawsuit to collect a debt. However, among the many things a collector is not allowed to do is threaten you with a lawsuit just to get you to pay the debt. Examples of threats and deceptive practices prohibited by the FDCPA are when the collector:

Says it will garnish your wages or sell your property if it is not legal to do that.

Says it will sue you, if the collector doesn't intend to sue.

Is not truthful about the amount of money you owe.

Says you will be arrested if you don't pay the debt.

Threatens you with violence.

If I co-sign a loan, can a debt collector contact me?

Yes, if the person who asked you to co-sign does not pay. When you co-sign a loan, you are guaranteeing that the lender will be repaid - either by the person who asked you to co-sign or by you.
As the co-signer, you have the same legal protections as the primary signer. You may also have additional claims against the creditor and possibly the collector if you were not given the special disclosures required under state and federal law advising co-signers of the risks involved.
Dealing with a debt collector can be one of life's most stressful experiences. Harassing calls, threats, and use of obscene language can drive you to the edge. What's worse, a collector may embarrass you by contacting your employer, family or neighbors. You may even be hounded to pay a debt that is not rightfully yours. Sure, collection agencies have a job to do. Even so, there are limits on how far a debt collector can go.

Harassment from creditors or debt collectors require an understanding and implementation of consumer law (FDCPA) and involving an attorney in your state will be the best option.