How Your Debt Gets to a Collection Agency
Debtor Harassment Red Flags
Examples of harassment, as prohibited by the FDCPA, include:

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Repeatedly causing the phone to ring or calling you repeatedly with the intent of annoying, abusing or harassing you.
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Calling you at inconvenient times of day, especially before 8 a.m. and after 9 p.m.
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Calling you at work after you've informed them you do not wish to receive calls there.
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Leaving threatening phone messages.
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Using profanity and/or hurling insults.
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Employing scare tactics, including threatening to report you to a law enforcement agency or sharing information about the alleged debt with your friends and employer.
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Making false claims and accusations.
Debtor Harassment and the Law
The Federal Trade Commission (FTC), the nation's consumer protection agency, enforces the FDCPA, a federal law prohibiting debt collectors from harassing, oppressing or abusing you or any third parties they contact. This law applies to collection agencies, lawyers who collect debts on a regular basis and companies that buy delinquent debts and then try to collect them.
Under the FDCPA, collectors must disclose that they are debt collectors and that any information shared will be used to collect the debt. They may not call before 8 a.m. or after 9 p.m., unless you have explicitly given them permission to do so.
"I have heard of cases where a debt collector called someone as many as 200 times and 90 times within an hour," says Hopwood. "That definitely constitutes harassment and is absolutely against the law. Harassing behavior should not be tolerated."
It's also illegal for collectors to use obscene language; to threaten, abuse or deceive you; or to imply that they represent a government agency. They also may not say that you have committed a crime. If a debt collector engages in harassing communication, you can submit a complaint to the Consumer Financial Protection Bureau or contact your state's attorney general.
What Can You Do?
If the harassment persists, consider hiring an attorney to pursue monetary compensation on your behalf. Many experienced consumer lawyers offer their services free of charge and are paid by debt collectors as an additional penalty.
If you don't want the collector to contact you again, send a "cease and desist" letter via certified mail (keep a copy for your records), and pay for a return receipt so you'll be able to confirm that the letter was received. "If they continue to contact you, you are now putting them in the position of facing a possible lawsuit for violating the law," Hopwood says.
Upon receipt of the letter, the collector may only contact you again to inform you that there will be no further contact or to let you know that the agency plans to take a specific action, like suing you.
Note that sending this letter won't make the debt go away; it just stops collectors from communicating with you about it. Some credit experts warn that doing so may even expedite legal action being taken against you.
Communicating with Creditors: Do's and Don'ts
Statute of Limitations on Debt
All consumer debts — from credit card balances to medical bills —- have limits on the number of years in which creditors have a legal right to sue you for payment, but that doesn't mean it just goes away. The statutes of limitations vary by state and type of debt — for example, whether the account is considered a contract or a negotiable instrument.
After that legal time period passes, the debt is considered "time-barred" and you can't legally be sued, but some collectors may still try to get you to pay. Williams says this is why it's important to look closely at the age of the debt you are being contacted about and familiarize yourself with the laws in the state where the debt originated. "You might have to seek legal help — hire an attorney — to help you out," she says.
Even if you are no longer legally obligated to pay the older debt, it may still be reported to the three major credit bureaus and it can remain on your credit report for future creditors to see for years. That may make it harder for you to secure new lines of credit, and you'll likely have higher interest rates on the credit lines you secure in the future.
In some cases, paying even a portion of the debt before the statute of limitations has expired can start a new statute of limitations period. That means the collector may now sue you to collect the full amount of the debt, including additional interest and fees.
Debt and Deceased Relatives
They say, "You can't take it with you," but when it comes to debts and the deceased, that isn't necessarily true. Although several things may factor into this, including your state's laws and whether anyone else's name is on the account, "usually, when you die, your debt dies with you unless someone else's name was on the account," Williams says.

Identifying Debt Collection Scams
Anyone can fall prey to debt collection scams. Fraudulent debt collectors are everywhere and they can use your information to steal your identity and open accounts in your name. It is up to you to protect yourself.
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Red flags:
You may refuse to discuss any debt until you receive a written validation notice via mail, email or fax. By law, it must be sent to you within five days of their first contact with you and should outline how much you owe, the name of the creditor and how to proceed if you don't think you owe the money.
Report all suspicious debt collection calls to the FTC. This will help ensure that the fraudulent activity is investigated and protect other potential victims.
Consumer Resources
If you feel you have fallen victim to a debt collection scam or harassment, or if you need some help with debt management, there are many organizations and agencies available to help. You may start with the governor's office of consumer affairs in your state. Following are some additional resources to consider:
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Visit the NAAG site to find contact information for your state attorney general's office. Your local AG website can provide information about the laws specific to each state or enable you to file a complaint concerning debt collection, credit and finance.
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You may file a complaint online with the FTC, which aims to prevent business practices that are anticompetitive, deceptive or unfair to consumers and to enhance informed consumer choice.
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Through educational materials and a tool for filing complaints, the CFPB seeks to provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace. The CFPB also works to make credit card, mortgage and other loan disclosures clearer, so consumers may better understand their rights and responsibilities.
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Visit this site to obtain your annual credit reports from all three major credit bureaus and review them for changes and updates. You are entitled to one complimentary report each year from each of the bureaus. You may also purchase additional copies for a fee.
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Visit this nonprofit consumer education and advocacy group's website for tips on protecting yourself from credit card fraud, identity theft, home equity loan fraud, credit repair scams, insurance fraud and telemarketing scams.
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Get helpful consumer tips, and check a company's history and file complaints about a business through this nonprofit organization, which is focused on advancing trust in the marketplace.