Collection agencies can make being trapped in debt even more exhausting and stressful. Harassing phone calls and aggressive attempts to contact debtors have caused many consumers to file complaints and lawsuits against collection agencies. Complaints against collection agencies are filed with the Consumer Financial Protection Bureau (CFPB).
Under the Fair Debt Collection Practices Act, collection agencies are not allowed to misrepresent themselves, threaten debtors or use abusive language. In March, more than 3,800 consumers filed complaints against debt collection agencies. Among the complaints filed with the CFPB, 33 percent were for communication tactics, threats and making false statements.
In one case, a collection agency used false information and threats to coerce people into making payments they did not owe. In another case several years ago, a collection agency was caught threatening to kill pets if payments were not made.
Even collection agencies that work for the federal government have been caught using unethical tactics. Several weeks ago, we wrote about the Department of Education shutting down five debt collectors for giving debtors false information.
How Can I Get Rid of Collection Agencies?
People can face collection agency harassment for a variety of reasons, such as medical debt, student loan debt, credit card debt, and late car or mortgage payments. Once this happens, the phone starts to ring multiple times a day. Collection agencies act as financial bounty hunters, trying to find the location of debtors.
Depending on the circumstances, filing for bankruptcy can be a wise option. One benefit of bankruptcy is that it puts an “automatic stay” on all collection actions. As long as the automatic stay is in effect, collection actions and other means to contact you must stop.
Depending on your situation, it may be possible to discharge some of your debts by filing for bankruptcy, which would permanently end some collection calls. Learn more from the attorneys at The Sader Law Firm by exploring our YouTube page.
The Sader Law Firm – Kansas City Bankruptcy Attorneys