Debt Collector Scare Tactics: Don’t Fall for Them!
According to a 2021 report, the average American is $90,460 in debt. Common types of consumer debt include credit card bills, medical bills, and student loans. A recent survey reports that 47 percent of Americans carry a monthly balance on their credit cards. 70% of those people say they cannot pay it off this year.
Despite debt being so common, we live in a society that stigmatizes those who owe money. People with consumer debt, whether from credit card bills, medical bills, or other sources, are often so ashamed they do not seek the help they need. When people feel isolated in this way, they become a prime target for exploitation.
We would like to tell you about some of the primary debt collector scare tactics so you are better prepared for their manipulations. We will also tell you what you can do about it.
Know Your Rights
We have spoken many times on this blog that the Fair Debt Collection Privacy Act (FDCPA) protects you from third-party debt collectors who employ harassment and other unfair practices to try to collect a debt. There are several laws that protect consumers from unfair debt collection practices, and the Federal Trade Commission enforces these laws. Third-party debt collectors are those who either collect for the original creditor or who have bought the debt. Before dealing with a debt collector, you should have a good idea what they are allowed to do and what they are not.
The FDCPA rules are designed to protect consumer rights and clearly outline what debt collectors can and cannot do. If a debt collector violates your rights under the FDCPA, you can sue them for damages and legal fees. A good, experienced Florida debt collection defense attorney can inform you, and many including Attorney Debt Fighters, offer a free initial consultation.
Don’t Be Intimidated or Manipulated by These Debt Collector Scare Tactics
Even when debt collectors operate within the law, it’s not pleasant to deal with them. The better prepared you are, the less likely you are to be rattled by an encounter with a debt collector and give into their demands when you really do not have to do so. Many collectors use common scare tactics, including frequent phone calls and other abusive practices, to intimidate consumers. Debt collectors are primarily focused on collecting and will use various tactics to collect money, some of which may cross into illegal practices.
Following are some of the scare tactics you might expect from debt collectors. You do not have to talk to debt collectors and can write a cease-and-desist letter to stop them from calling you. This is an effective way to get debt collectors to stop calling and prevent excessive calls. If you feel overwhelmed by debt collection efforts, seeking debt relief options may be a good step.
Threatening Immediate Collection Actions They Are Not Able to Take
Debt collectors sometimes use aggressive language to pressure you into paying debts right away. They might claim they can instantly garnish your wages or seize your bank accounts if you don’t pay immediately. However, under the Fair Debt Collection Practices Act (FDCPA), debt collectors are not allowed to make false or misleading statements about what they can do. In reality, debt collection agencies cannot take actions like wage garnishment or freezing your bank accounts without first going through the legal process and obtaining a court judgment.
If a debt collector tries to scare you with threats of immediate action, remember that fair debt collection practices require them to follow the law. You have the right to take your time, review your options, and seek advice before paying or agreeing to anything. Don’t let scare tactics push you into making payments you’re not ready for—know your rights and don’t be intimidated by empty threats.
Until a debt collector goes to court and gets a judgment against you, they cannot take actions to collect such as seizing money in bank accounts or garnishing your wages. Even after they get a judgment, they still must seek court approval to take collection actions. The maximum amount that can be garnished from your wages is limited by law, typically the lesser of 25% of your disposable earnings or the amount by which your weekly income exceeds 30 times the federal minimum wage.
All of this takes awhile. You have some room to think and to call a good Florida debt collection defense attorney for help. You do not need to agree to anything right there on the phone when a debt collector calls.
Relentlessly Getting in Your Face
When debt collectors call, many people already feel upset and even afraid. Debt collectors know this, and they capitalize on it. The worst debt collectors might call you in the middle of the night, in a relentless campaign to intimidate you. Excessive calls are a common tactic used to pressure consumers into paying. Some might even show up on your doorstep.
Both of these tactics are illegal harassment. Legally, debt collectors may only call you between 8 am and 9 pm under federal law, which can seem overwhelming in itself. A debt collector may not call your number more than seven times in a seven-day period. Once they actually talk to you on the phone, they may not call them for another seven days. Be aware though, that these restrictions apply for each debt not for all your debts. Debt collectors cannot contact consumers about a debt during the 30 days after a dispute is claimed. Some collectors may also threaten to contact your family members as a form of intimidation, which is not allowed under the law. To protect yourself, document every phone conversation you have with a debt collector, including dates, times, and what was said.
So even if debt collectors stay within the rules, that can still be a lot of calling that encroaches on your peace of mind. Want it to stop? A good Florida debt collection defense lawyer can make it stop immediately.
Other Forms of Harassment
It is illegal for debt collectors to harass you. That harassment can take many forms such as calling you names, calling you a thief or threatening you with legal actions they cannot take or even bodily harm. Debt collectors may suggest that paying off the debt will immediately improve your credit score, which is misleading. Even if a debt is paid, a negative report can remain on your credit report for up to seven years, and paying a debt does not immediately remove a negative report from your credit report. Don’t stand for it. You don’t have to talk with these people, and if you are harassed, you should contact your lawyer right away.
Lying About Your Debt
A debt collector may lie about the amount you owe or say that you owe debts that are no longer legally collectible under the law. Collectors may pressure consumers to pay on old debts which may be beyond the statute of limitations, thereby making them uncollectible. A debt collector’s income often depends on how much they collect, which can motivate them to pursue even old or uncollectible debts. Collectors often insist they do not need to prove the existence of a debt when they contact you, which is not true under the law. Ask the debt collector in writing (and by certified mail) to provide debt validation—that is, proof that you owe the debt. Debt collectors cannot contact you about the debt until they send you verification.
If it is an old debt, check with your Florida debt collection defense attorney about the statute of limitations for debt in your situation. The statute of limitations for debt typically runs from four to six years from the date of the last payment. Every state has a statute of limitations that makes certain old debts uncollectible. Once the limitations runs, the debt is no longer legally collectible and a collector cannot sue you for it. After the time period set out by the statute of limitations, a debt collector cannot file a court complaint against you unless you have taken some action to restart the statute of limitations, such as by making a payment. If you pay anything on an old, dead debt past the statute of limitations or make an arrangement to pay it, you can bring it alive again.
Illegally Sharing Information about Your Debt with Third Parties or Threatening to Do So
If a debt collector tells family, friends, your employer or anyone else (except your attorney and perhaps your spouse) about your debt, they are violating the FDCPA. This is harassment, and once again, that is grounds for legal action for damages and attorney fees. Additionally, debt collectors must send a written notice detailing the debt within five days of first contact. Collection agencies may also report negative information about your debt to a consumer reporting agency, which can impact your credit. Consumers have 30 days to dispute a debt once they receive a validation letter from the debt collector. Debt collectors cannot access your bank account without a court order.
Giving You a Fake Deadline
A debt collector may tell you that you must pay by a specific date or the debt will markedly increase due to additional fees. This is not the case. Debt collectors frequently impose fake deadlines, claiming that failure to pay by a specific date will result in negative consequences. However, be aware that if you ignore a debt collector long enough, eventually the creditor will probably file a complaint in court against you which could result in additional fees as well as a judgment that enables them to pursue actions to garnish your wages or freeze your bank accounts.
Old Debts and the Statute of Limitations
When it comes to old debts, debt collectors may try to collect even after the legal time limit—known as the statute of limitations—has expired. The statute of limitations sets a deadline for how long a debt collector can sue you to collect a debt, and this period usually ranges from four to six years, depending on your state. Once this time runs out, the debt is considered “time-barred”, and while debt collectors may still contact you, they cannot legally take you to court to collect.
Be cautious: if you make a payment or even promise to pay on an old debt, you might restart the statute of limitations, giving the debt collector a new window to sue you. Debt collectors may use scare tactics to pressure you into paying old debts, but you are not legally required to pay debts that are past the statute of limitations. Always check the age of the debt and consult with a professional before making any payments on old debts.
Verifying the Debt
If a debt collector contacts you, don’t rush to pay—first, make sure the debt is legitimate. You have the right to request a written notice that verifies the debt, including the amount owed and the name of the original creditor. By law, debt collectors must send this written notice within five days of first contacting you. This step is crucial, as it helps you avoid falling victim to fake debt collectors or paying debts you don’t actually owe.
Never make payments or share personal financial information until you’ve received and reviewed the debt verification. If a debt collector refuses to provide this information or tries to pressure you into paying before you receive it, that’s a red flag. Protect yourself by insisting on written verification and keeping records of all communications.
Negotiation and Payment Options
Facing debt collection can feel overwhelming, but you have options. Debt collectors may use scare tactics to push you into quick or unaffordable payment plans, but you don’t have to agree to anything on the spot. Instead, consider your alternatives:
- Credit counseling agencies can help you create a budget and develop a plan to pay your debts.
- You can negotiate directly with the debt collector, offering a lump sum or setting up a manageable payment plan. Always get any agreement in writing before sending money.
- Explore debt consolidation, debt management, or debt settlement as other courses of action.
Remember, you should never agree to pay more than you can afford, and you have the right to take your time to review any offer. If you feel pressured or threatened, know that the FDCPA prohibits debt collectors from using unfair practices. Stand your ground, know your rights, and seek professional advice if you need help negotiating with a debt collection agency.
Call Us for Help
If you are tired of debt collector scare tactics and find that you cannot reach an agreement with them, you may want to hire a Florida debt collection defense attorney. To discuss your options, you can call us for a free consultation at Ziegler Diamond Law: Debt Fighter. Submit this form or just call us directly at (727) 538-4188 in Clearwater, (813) 225-3111 in Tampa or (352) 600-1326 in Mt. Dora. We can make the harassment stop. Consumers can report a debt collector or request a debt collector to stop contacting them by sending a cease-and-desist letter.
Ziegler Diamond Law, provides effective legal services to consumers in Clearwater, Florida, and throughout the Florida who are facing home foreclosure, unmanageable debts, debt collector harassment, or other debt-related problems.
