Understanding Your Rights: A Complete Guide to Debt Collection Harassment and Consumer Protection – Episode 18

There are two main categories of debt collectors: third-party collectors like Midland, Portfolio, and Cavalry who purchase and collect debt, and original creditors like Bank of America, Wells Fargo, and Chase who collect their own debt. The Fair Debt Collection Practices Act (FDCPA) governs third-party collectors, while California’s Rosenthal Fair Debt Collection Practices Act covers all collectors, including landlords and banks.

Harassment occurs when collectors make excessive calls (like 15 times daily), leave threatening voicemails, disclose debt information to family members, continue calling after being asked to stop, contact you at work after being told not to, or contact you directly when you have legal representation. These actions violate federal and state consumer protection laws.

Collectors may only contact family members to obtain your address. They cannot disclose your debt or leave messages about owing money. Workplace contact is prohibited if you’ve requested them to stop. Both practices can result in legal violations under the FDCPA and Rosenthal Act.

Violations can result in statutory damages up to $1,000 plus attorney fees and costs. While these amounts might seem small compared to collection companies’ revenues, successful lawsuits can provide relief from harassment and some financial compensation. Class action lawsuits against major companies have resulted in multimillion-dollar settlements.

Keep detailed records of all calls, including dates, times, and content. Save voicemails, take screenshots of calls, and maintain copies of any written correspondence. Written cease-and-desist requests with delivery confirmation are particularly valuable as evidence. This documentation strengthens your case if legal action becomes necessary.

First, document everything. Send written cease-and-desist letters if possible. Consider consulting a consumer protection attorney, as many offer free consultations and work on a contingency basis through fee-shifting statutes. Don’t ignore the situation, as the stress can be overwhelming. Legal professionals can help evaluate your rights and potential solutions, including bankruptcy if appropriate.