Debt Collection Tactics That Are Illegal (But Still Common)

Dealing with debt collectors can be stressful, especially when some cross the line into illegal practices. While laws like the Fair Debt Collection Practices Act (FDCPA) exist to protect you, many collectors still engage in unethical and unlawful tactics. Recognizing these tactics is key to protecting your rights and taking action against harassment. 

Harassing or Threatening Behavior

What’s Illegal:

• Excessive calls meant to annoy or harass you.

• Threats of violence, arrest, or harm.

• Using obscene or abusive language during communication.

Why It’s Common:Debt collectors rely on intimidation to scare consumers into paying, even if the debt is invalid.

What to Do:

• Document every instance of harassment.

• File a complaint with the Consumer Financial Protection Bureau (CFPB) or your state attorney general.

2. Calling Outside Permissible Hours

What’s Illegal:

• Calling you before 8:00 AM or after 9:00 PM in your local time zone.

Why It’s Common:Collectors may claim ignorance of your time zone or deliberately disregard the law to catch you off-guard.

What to Do:

• Remind them of the FDCPA’s restrictions.

• Send a written request to restrict communication times.

3. Misrepresenting the Debt

What’s Illegal:

• Lying about the amount you owe.

• Claiming to be from a government agency or law enforcement.

• Pretending the debt is newer than it is to bypass the statute of limitations.

Why It’s Common:Many collectors assume consumers don’t fully understand their debts and use confusion to their advantage.

What to Do:

• Request a debt validation letter to confirm the legitimacy of the debt.

• Dispute any inaccuracies in writing.

4. Contacting Third Parties About Your Debt

What’s Illegal:

• Discussing your debt with family members, friends, or coworkers.

• Contacting your employer to embarrass or pressure you.

Why It’s Common:Collectors hope third-party involvement will shame you into paying.

What to Do:

• Inform the collector they are violating the FDCPA.

• Document the contact and report it to the CFPB.

5. Ignoring Written Communication Requests

What’s Illegal:

• Continuing to call you after you’ve requested all communication be in writing.

Why It’s Common:Phone calls provide collectors with opportunities to pressure you in real-time, making it harder to say no.

What to Do:

• Send a cease-and-desist letter via certified mail.

• Keep copies of all correspondence as evidence.

6. Demanding Payment on Expired Debt

What’s Illegal:

• Attempting to collect on debt that is past the statute of limitations without informing you.

Why It’s Common:Most consumers don’t know that expired debts are unenforceable, so collectors often try to convince them to pay anyway.

What to Do:

• Verify the age of the debt.

• Avoid making payments, as this could restart the statute of limitations.

7. Threatening Legal Action They Can’t Take

What’s Illegal:

• Claiming they’ll have you arrested for unpaid debts.

• Threatening to sue you when they have no intention of doing so.

Why It’s Common:Collectors use fear tactics to coerce payments, especially for debts that may not hold up in court.

What to Do:

• Ask for proof of their legal authority to sue.

• Consult an attorney if you receive actual legal documents.

8. Using False Documentation

What’s Illegal:

• Sending fake court orders, legal notices, or forged documents to intimidate you.

Why It’s Common:Collectors may create fake paperwork to pressure you into immediate payment.

What to Do:

• Examine any documents for authenticity.

• Report forgeries to law enforcement and consumer protection agencies.

9. Failing to Provide Written Notice of the Debt

What’s Illegal:

• Not sending a written notice of the debt within five days of their initial contact, as required by the FDCPA.

Why It’s Common:Some collectors skip this step to avoid providing proof of the debt.

What to Do:

• Request a debt validation letter.

• File a complaint if they fail to comply.

10. Continuing to Collect After a Dispute

What’s Illegal:

• Attempting to collect a disputed debt without investigating or resolving your dispute.

Why It’s Common:Collectors may hope you’ll pay out of frustration or confusion, even if the debt is invalid.

What to Do:

• Dispute the debt in writing and keep a copy for your records.

• Seek legal advice if collection efforts persist.

Protecting Yourself Against Illegal Debt Collection Tactics

• Understand Your Rights: Familiarize yourself with the FDCPA and other consumer protection laws.

• Document Everything: Keep records of all interactions, including call logs, emails, and letters.

• Seek Legal Assistance: If your rights are violated, consult a consumer protection attorney or organizations like I Sue Debt Collectors for help.

• File Complaints: Report violations to the CFPB, the Federal Trade Commission (FTC), and your state attorney general’s office.

Final Thoughts

While debt collectors have a right to pursue unpaid debts, they must do so within the boundaries of the law. Recognizing illegal tactics and taking swift action can protect your financial well-being and peace of mind.

At Jackie J Consulting, we specialize in holding debt collectors accountable for unlawful practices. Contact us today to learn how we can help you stop harassment and reclaim your rights.

Why the CFPB Matters

The CFPB empowers consumers to take control of their financial well-being. By enforcing laws and holding companies accountable, it plays a critical role in creating a fairer financial system.

If you’re dealing with illegal debt collection practices, don’t hesitate to leverage the resources and protections offered by the CFPB. For more personalized help, consider consulting with professionals like Jackie J Consulting, who can guide you through the process of protecting your rights.