Three Steps to Stop Debt Collector Harassment

(This is a "guest" blog from my colleague Sergei Lemberg. You can email Sergei with any questions or comments at slemberg@lemberglaw.com)

In today’s economy, an increasing number of people are finding themselves on the receiving end of debt collector harassment. Consumers are being inundated with phone calls, letters, and other forms of harassment by debt collection agencies that are willing to stoop to any level to collect on a debt.

If you’ve been the victim of debt collector harassment, there are three primary steps you should take.

First, it’s important that you understand the law. After all, knowledge is power, and there’s a powerful federal law on the books that outlines the differences between legal and illegal debt collection practices. It’s called the Fair Debt Collection Practices Act. You should become familiar with those practices that cross the line, and document every interaction you have with a debt collection agency. If you keep a logbook of your conversations and correspondence, it will be tremendously helpful if you should sue them under the FDCPA.

Second, you should write what’s called a cease and desist letter. According to the Fair Debt Collection Practices Act, a debt collection agency must stop contacting you once they receive a cease and desist letter. While this doesn’t erase a legitimate debt that you owe, it does prevent them from harassing you. If they continue to contact you after you’ve sent a cease and desist letter, they’re in violation of the FDCPA.

Third, you should contact an attorney. The Fair Debt Collection Practices Act says that, if you have an attorney, the debt collection agency may no longer contact you directly. All correspondence and calls must go through your attorney. When you select an attorney who specializes in fair debt law, he or she will most likely represent you free of charge. This is because the FDCPA specifies that, if a debt collection agency violates the law, it is responsible for paying your attorney fees. In addition, a fair debt attorney may also be able to collect damages on your behalf in an amount up to $1,000. Alternately, if you have a solid case against a collection agency, the chances are good that they’ll back down and settle your outstanding debt for pennies on the dollar.