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Debt is without a doubt one of the worst four letter words. Not only does it hamper an individual’s ability to work toward other financial goals, but it feeds an industry of companies that are seemingly out for blood. When you are in debt you not only have to worry about how you are going to pay your day-to-day expenses but also how you will make arrangements to repay your creditors. If you are like many Americans facing a financial hardship you may find yourself falling behind on credit card and other debt payments making yourself a target for aggressive debt collection tactics. Some of these tactics can be be unsettling but others are downright illegal.

The New York Attorney General has just shut down a collection operation that has been using illegal tactics nationwide. While it is true that creditors have every right to try to collect money owed toknow-your-rights them, there are certain lines that cannot be crossed to protect consumers from illegal tactics. The rules differ depending on who you are dealing with, an original creditor or a collection agency which has bought your debt from the original creditor or another debt collector. The company that was the recent target of Attorney General Cuomo’s investigation has been shut down after it was discovered they (collectors) were pretending to be police officers, threatening to throw consumers in jail and using scripted telephone calls designed to intimidate consumers into paying debts according to a Consumer Affairs report. The following tips can serve as a reminder of your rights if you are struggling with debt and dealing with collection agencies.

  • Debt collectors cannot contact you whenever they choose. They are limited to contacting you between the hours of 8am and 9pm and shall not contact you at work if you have relayed to them you are unable to receive this type of call at your place of employment.
  • They may not discuss your debt with third parties, such as a relative, neighbor or employer. They shall only relay information regarding the debt they are attempting to collect to your attorney or to you directly.
  • Debt collectors cannot misrepresent themselves as anyone other than a debt collector. This makes it illegal for a debt collector to claim to be a police officer, an attorney or anyone else for that matter.
  • Legal action can be taken against you in an attempt to recover money owed, however debt collectors cannot threaten legal or other repercussions without the express intent of following through. This means unless they are actually in the process of taking legal action they cannot threaten to do so. Remember your wages cannot be garnished until legal action has been taken and a judge has imposed a wage garnishment. In that event you will receive written notification well in advance of any garnishments. Do not fall for the oldest trick in the book, which is to threaten your very next paycheck.

More information is available by reviewing the Fair Debt Collection Practices Act. Remember that the law does not apply to your original creditor.

In an ideal world you would not have to worry about debt collectors because you would not be behind on any of your accounts. Unfortunately that is not the world we live in. If you are experiencing a financial hardship, you should seek immediate assistance to try and resolve your outstanding debt. While you are offered some protection through the law, in the end you still owe the debt. Paying it off is the only way to completely avoid problems that arise from debt collection efforts.



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