Creditors won't stop calling

January 20, 2007 9:16 AM

So... Debt collectors are calling, and I'm not sure if they're acting within the law. Please advise.

I got in some trouble with credit cards and I am now working with MMI to get my debts in line. They're in the process of getting proposals sent out to creditors, but they said it does take some time for the requests to go through and to get approved. So, in the meantime, one of my creditors has been calling me at least three times a day, claiming that they're a law office, and they're saying that they either have "Exciting news," or "Important information" for me. I have talked to them a few times because I was curious to see what was going on... Needless to say, it was the bank. I looked at the FDCPA, and I'm not quite sure if what they're doing falls within misrepresentation or not. Are they acting within the FDCPA, or are they breaking the law?

posted by ganzhimself to Work & Money (13 answers total)

They are absolutely breaking the law. Further, if you tell them you no longer want to be contacted by anything other than mail, and they ignore that, they will be breaking the law. Sadly, the law isn't particularly well enforced, though if you document a violation you can sue for $500 or $1000 per violation. (Which actually isn't too hard if you want to put in the effort.)

IAAL, but this is not legal advice.
posted by raf at 9:57 AM on January 20, 2007 [1 favorite]

I'm in collections, and this seems to be clearly illegal. Not the three times a day, I think that is the limit, but the misrepresentation. Are you in a state where you can tape the calls legally?

You can ask them directly not to call you, best to do in writing, and they have to stop. This does not stop the collections, of course, just the calls.

Take a look at the Federal Trade Commision's Fair Debt Collection page, which directly mentions the whole "lawyer's office" bit.
posted by thebrokedown at 9:59 AM on January 20, 2007

My own recent experience with debt collectors seemed to back up raf's answer - IANAL, but if memory serves they're required to identify themselves as a collection agency and inform you that any information collected will be used solely to collect the debt, etc.

Good luck - the sooner you're out of debt the better, but don't let the fuckers rattle you. If they don't collect, they lose (if I understand correctly), and you have a right to some decency.

UNLESS Y'ALL STEP INTO MY HOUSE!

(Had to say it.)
posted by waxbanks at 10:02 AM on January 20, 2007

Response by poster: Here's the deal. I requested that they do not contact me by phone when I was first unable to pay, and they complied. But now the calls started coming again. In Wisconsin I cannot record the call without informing the other party. Although I suppose I could just keep the voice messages they leave. That seems to be when they misrepresent. When I return the call they don't even greet with who I am calling until I provide them with my phone number.
posted by ganzhimself at 10:04 AM on January 20, 2007

You say they're "debt collectors" but you also say it's the original creditor, the bank. FDCPA draws a distinction between these and its provisions only applies to collectors. If it really is the bank calling you, FDCPA doesn't apply. Though of course that doesn't mean what they're doing is legal. Fraud is fraud.
posted by nakedcodemonkey at 10:09 AM on January 20, 2007

I cannot record the call without informing the other party

So inform them. Either they'll stop breaking the law, or they'll be dumb enough to do it on tape after you have informed them. Either way you win.
posted by grouse at 10:10 AM on January 20, 2007

Response by poster: It seems to be the collections department at the bank who issued the credit card. Does not seem to be a third party, as the person I talked to said they were located in North Dakota, same city, same state as the bank.
posted by ganzhimself at 10:13 AM on January 20, 2007

ganzhimself, so you're just assuming? Don't. Collections agents LOVE for you to assume. Assume nothing. ASK specific questions and do it while recording (with the required notice of course). If it's a debt collector -- including a debt collection law office -- you have clear rights and they have clear obligations. Which is exactly why they don't want you to notice who they are.
posted by nakedcodemonkey at 10:23 AM on January 20, 2007

Oh yeah. Record the call, sue 'em, and you'll make back some of that money you owe.

The best way to do it would probably be to set it up on a speakerphone and videotape yourself speaking to them; dial into your voicemail that's misrepresenting, play the voicemail, and then dial the number they leave. Ask if they're the bank or if they're a collections agency -- and then look up the phone number and mailing addresses that they give you.

Sue them in small claims court (in your town), and it's unlikely they'll even show up. There's a TON of information over at Debtorboards.com ... check the "Aggressive Credit Repair" methods.
posted by SpecialK at 11:18 AM on January 20, 2007 [1 favorite]

My understanding is that your request to only be contacted by mail must be delivered to them in writing in order to be enforceable. Certified letter of course.
posted by The Deej at 11:28 AM on January 20, 2007

Here are some pretty good tips posted in the comments of a Consumerist post about debt collection.
posted by stefanie at 2:03 PM on January 20, 2007

I second or third or whatever the recording thing. Record it and tell them you're recording it. If they hang up, great, they're gone. But, if not, you can be fairly sure that they're going to be a lot more cautious about what statements and threats they're willing to make.

If that doesn't help, remind them that ABC World News just had a really unfriendly 7 minute segment on collection calls, and perhaps they'd like to hear about how your mother/cousin/friend/whatever works at the network?
posted by nevercalm at 5:52 PM on January 20, 2007

There is some really helpful information on this very topic in Dave Ramsey's book Financial Peace Revisited. He devotes about half a chapter to dealing with over-the-top creditors. (It's also a great resource for all aspects of getting your financial house in order. He writes for people with severe debt problems.) I'd recommend you look at that.
posted by Pater Aletheias at 8:52 PM on January 20, 2007