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Calls from debt collectors can be intimidating and overwhelming. They often carry a reputation for violating the law and mistreating borrowers. The Federal Trade Commission (FTC) has sued over 30 debt collection companies for legal violations and even banned them from operating their businesses. Understanding your rights is essential to identifying when a debt collector is engaging in illegal behavior.
In this article, we will contemplate a very common question: Why are debt collectors calling me? We will also discuss strategies that can help protect you from unnecessary calls from debt collection agencies. Let’s take a closer look at how you can shield yourself from bothersome debt collectors.
A debt collector is an individual or agency responsible for collecting money from borrowers, typically on overdue accounts. Debt collectors may reach out through phone calls, emails, or letters regarding an outstanding debt. When a debt goes unpaid for several months, the creditor will likely sell it to an external agency known as a third-party debt collector.
Now that you have a clearer understanding of debt collectors, let’s examine some reasons why they may be contacting you.
Over 70 million adults in America have their debts assigned to debt collectors, making these agencies a frequent third party in debt settlements and negotiations.
Here are some reasons why a debt collector is contacting you:
It’s crucial to understand how to handle debt collectors so that you can assert your rights and strategize the best possible method to manage your debt.
The Fair Debt Collection Practices Act (FDCPA) serves as the primary governing body for debt collection methods. Additionally, the FDCPA prohibits debt collection agencies from engaging in deceptive practices. Furthermore, on November 30, 2021, the Consumer Financial Protection Bureau (CFPB) introduced a new Debt Collection Rule that clarifies how debt collectors can communicate with you.
Here's how the FDCPA restricts debt collectors' communication practices with debtors:
Debt collectors cannot contact you at unusual times or places. The law prohibits them from reaching out before 8 a.m. and after 9 p.m. Additionally, a debt collector is not allowed to call you at your workplace.
Debt collection agencies cannot use social media to post about a debt publicly. However, they can reach out to you through these platforms. If a debt collector attempts to make contact via social media, emails, or other electronic means, they must provide an easier method for future communications.
The law prohibits debt collectors from harassing you or anyone else via phone or any other form of contact, including emails and texts.
If a debt collector knows that an attorney is representing you for a debt, they must stop all forms of communication and contact your attorney instead. A good practice is to provide all necessary documents to a debt collector and keep a written record of all conversations. These documents are helpful in court proceedings.
Also read: FDCPA Violations Explained: Protect Yourself From Debt Abuse
In December 2024, the FTC issued over $540,000 in refunds to consumers who had been targeted by a group of abusive debt collectors threatening lawsuits. Although few debt collection agencies resort to such deceptive practices, the following strategies can help protect you from these issues.
One of the most common complaints in bureaus is the constant calling from debt collectors. The letter asserts your rights under the FDCPA, and once a debt collector receives such a letter, they must stop calling you. Any further attempts to contact you are a direct violation of Section 805(b) of the FDCPA.
Debt collectors often buy old debts from other collectors. In these situations, you may not have accurate information about the debt. If borrowers believe the debt does not belong to them, they can send a letter to the collectors to dispute it. Moreover, the FDCPA safeguards borrowers in such scenarios, and violations by debt collectors can lead to fines of up to $1,000 for each incident.
If debt collectors have recently started contacting you within the first 30 days, you have the right to request a validation letter for the debt. While the debt collectors are responding, they cannot legally collect from you. Additionally, your original creditor can provide the necessary information to dispute the debt.
A debt validation notice contains the following:
Before strategizing your response to a debt collection notice, it’s essential to understand how to respond immediately to debt collector calls.
Receiving calls from a debt collector is frustrating, and often, you may find yourself in a situation where you are unable to gain insight into your debts.
Here’s a step-by-step guide on how to handle communications from debt collectors:
Your first step is to stay calm and assess the credibility of your debt. Debt collectors can pressure you for immediate payments, and it's a good practice not to admit to the debt in the first place. In addition, it is important not to provide collectors with useful collection information that reaffirms your debt.
The next step is to gather data, including the debt collector's name and other details. The best way to keep track of all the information is through written documentation, which also serves as a paper trail and may be useful in legal proceedings.
Avoid sharing personal information over the phone or through other electronic communication devices. Scammers may impersonate legitimate collectors to contact you. According to the FTC, in 2023, 27% of individuals reported fraud, resulting in monetary losses, while in 2024, that figure rose to 38%.
Under the FDCPA, you have the right to request a debt validation letter when you are unsure about a certain debt. Moreover, during the initial phases of contact, a debt collector must send such notices within 30 days to clarify the details of the debt.
The final step is to take necessary actions and constantly follow up with the collectors. The law provides you with several options, such as sending a cease communication letter and a dispute notice. At this stage, you may also contact professional agencies that can protect you from further harassment.
If you're overwhelmed by debt collector calls, Shepherd Outsourcing Collections offers comprehensive expertise in debt management.
Calls from debt collection agencies can be daunting. However, understanding your rights and appropriate responses can make all the difference. A systematic approach to gathering the necessary information regarding your debts and maintaining open communication allows you to resolve the debt more effectively. Consulting experts can help you gain an advantage over your debt collectors.
If you're uncertain about how to deal with debt collectors, Shepherd Outsourcing Collections can be your best option. Our experts are here to help you make informed decisions when communicating with your debt collection agencies. Reach out to us today to discover solutions that will enhance your financial stability.
1. Why am I receiving calls from debt collectors all of a sudden?
It is common for debt collectors to purchase old debts from previous collectors. As a result, you may encounter debts after a long time.
2. Should I answer debt collector calls?
Ignoring calls from debt collectors may offer temporary relief; however, it won’t resolve the issue. A debt situation can escalate into a larger problem in the future, potentially harming your financial health.
3. How can I make debt collectors stop calling me?
A written notice is advisable to stop debt collectors' calls. Such a notice may encompass a cease communication letter and a debt dispute letter. However, it is crucial to collect the necessary information about the debts through debt validation letters before proceeding with these actions.
4. Is it possible to negotiate with a debt collector?
Yes, in most cases, a debt collector is open to negotiation regarding the original debt amount. However, this applies to older debts, as collectors may prefer to settle for an amount that saves time and effort.
5. Are debt collectors allowed to call me at work?
Under the FDCPA, debt collectors cannot attempt to contact your workplace and may face serious consequences for such abusive practices.
©2024 by Shepherd Outsourcing.