Harassing phone calls from creditors is a concern for many individuals facing unmanageable debt. The debt collection industry is big business. In fact, the Association of Credit and Collection Professionals (ACA) reported that roughly 6,500 collection agencies in the U.S. recovered more than $39 billion in debt in 2005 alone. Therefore it’s no wonder that these agencies often use aggressive tactics to get their share of the pie.

Strict federal and state regulations regarding debt collection practices, however, offer consumers protection from harassing collectors and have severe consequences for companies operating in an improper manner. By educating yourself on a few of the regulations binding these creditors and collectors, you can put an end to the harassment.

The Federal Trade Commission’s Fair Debt Collection Practices Act applies to third-party collection (not first party creditors) and was designed to protect consumers from devious and aggressive collection practices. Specifically, the Act states that collectors: 

1. May only contact you between 8 a.m. and 9 p.m.
2. Cannot use cell phone numbers for collection calls
3. May not contact you at work if you tell them your employer disapproves
4. May only contact you once per day
5. Must cease and desist future contact once you notify them in writing you do not want anymore calls (they may, however, send you one final notice regarding the next course of action)
6. Additionally, many collection agencies have been known to make subtle (or not so subtle) threats regarding garnishment of wages or even imprisonment for failure to pay debts. Section 807 of the Fair Debt Collection Practices Act “prohibits falsely representing or implying to the consumer that nonpayment will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person”.

What does this mean for you? It means that you have rights too. If you are receiving harassing calls, begin by telling the caller you believe they are harassing you and that you are aware of your rights under the Fair Debt Collection Practices Act. Next, send a formal letter to the collector saying that you are aware of the debt, are working to resolve it, and do not want to receive any additional calls (keeping in mind that the collector is allowed to send one final notice regarding their next course of action). If the harassment continues, notify the Federal Trade Commission or your state’s Attorney General’s office.

While debt settlement professionals cannot reduce harassing phone calls, many firms encourage their clients to refer all calls and contact to them for resolution. In some cases, the client is encouraged to send the collector a change of address and phone number listing their debt settlement professional’s contact information. These firms will also work with the collectors to come up with a solution to settle your debt and end the harassment for good.

Now that you have the knowledge you need to fight back, you can enjoy your dinner in peace and stop screening your calls — unless of course it’s your mother in-law…

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