10 Common Illegal Debt Collection Tactics

The Fair Debt Collection Practices Act (“FDCPA”) protects consumers against harassing, threatening, or deceptive debt collection tactics. This federal law applies almost exclusively to third-party debt collectors, meaning those companies who purchase or receive debts after the debts are in default with the original creditor. The FDCPA applies only to consumer debts (e.g. medical bills, credit cards, payday loans) and does not regulate the collection of business debts or certain municipal fines.

If a collector violates the FDCPA, the company will be liable for the consumer's attorney's fees and costs, plus up to $1,000 in statutory damages. The consumer may also recover actual damages (e.g. emotional distress damages, compensation for loan denials, or return of illegally garnished wages).
 
Below is a list of 10 common debt collection tactics that violate the FDCPA:

1. Threatening legal action that cannot be taken (arrest, criminal prosecution, civil lawsuit when the debt is past the statute of limitations);
2. Falsely claiming to be a District Attorney, attorney, police officer, or court authority;
3. Contacting a consumer before 8 a.m. or after 9 p.m.;
4. Using obscene or offensive language to collect a debt;
5. Adding illegal interest, fees, or costs onto a debt;
6. Failing to provide the consumer with written disclosures within five (5) days of the initial communication with the consumer;
7. Contacting third-parties and disclosing details about your debt to those parties;
8. Continuing to contact the consumer after being asked to cease communications;
9. Continuing to contact the consumer at work after being asked to cease; and
10. Attempting to collect a debt that does not belong to the consumer after being notified.