If you get in trouble, you can hire the best credit repair company in San Diego, but before things get that far, let’s discuss when you can sue a debt collector and when you can’t.
What Are Debt Collectors Not Allowed to Do?
The FDCPA has outlined several acts that are considered to be unfair, deceptive, or abusive by debt collectors.
1. Harassing You With an Excessive Amount of Phone Calls
Debt collectors are not allowed to harass you with phone calls. If a debt collector calls you more than once a day or calls outside the hours of 8:00 AM to 9:00 PM, it is considered harassment.
2. Threatening to Use Violence or Harm You
If a debt collector threatens to hurt you or your family, they are breaking the law. The FDCPA prohibits debt collectors from threatening violence or harm. You can report any threats to the FTC to ensure that the debt collector is held accountable.
3. Telling You That They Are a Lawyer and Can Sue You
Debt collectors cannot falsely portray themselves as lawyers to intimidate you. It’s illegal for debt collectors to pretend that they are lawyers or misrepresent themselves to collect a debt.
4. Using Profane Language or Racial Slurs
Debt collectors cannot use abusive language when trying to collect a debt. This is considered harassment and is against the law. If you hear a debt collector use profane language or racial slurs, report them to the FTC immediately.
Reasons to Sue a Debt Collector
You can sue a debt collector for several different reasons:
1. Improper Communications
If the debt collector continues to call you after you have already requested that they stop, or if they are calling outside the hours of 8:00 AM to 9:00 PM, you may be able to sue for improper communications.
2. Harassment or Abuse
You may have a case for harassment or abuse if a debt collector uses profane, threatening, or otherwise abusive language towards you. According to California debt collection laws, debt collectors are prohibited from using language designed to intimidate or harass you.
3. False Representation of the Amount Owed
If the debt collector falsely tells you that more money is owed than is due, you may be able to sue for false representation.
4. Attempts to Collect Interest or Fees
Debt collectors are not allowed to charge interest or fees on top of the amount due. If they do, then you may be able to sue them for attempting to collect money they are not legally entitled to.
When You Can’t Sue a Debt Collector
It’s important to remember that you can only sue under the FDCPA if the debt collector is acting illegally. If they are simply trying to collect a debt you owe, they are not violating the FDCPA. Debt collectors can report you to the credit bureaus if they are trying to collect a debt–this is considered a legitimate means of collecting a debt, and you cannot sue a debt collector for this.
How long before a collection agency reports to the credit bureau depends. Generally, it can take anywhere from thirty to ninety days. If the debt collector validates the debt, you may be obligated to pay it as long as it is not older than the statute of limitations. In this case, it may be best to negotiate a payment plan or settlement with the debt collector. A good credit repair company, like The Phenix Group, can help you negotiate with the debt collector to get a better deal.
In Summary
Debt collectors are bound by the law when attempting to collect a debt. If they violate any of the laws outlined by the FDCPA, you may be able to sue for damages.
It’s important to remember that you can only sue under the FDCPA if the debt collector is acting illegally–you cannot sue a debt collector for simply trying to collect a debt that you owe. If the debt collector abides by the law, it may be best to negotiate a payment plan or settlement with them.