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BUSINESS Monday 23 January 2017
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In debt and afraid: dealing with debt collectors

SARAH SKIDMORE SELL That includes threats of
AP Personal Finance Writer violence or using obscene
It’s a scary place to be — language. Federal law also
in debt and afraid. limits the number of calls a
A new Consumer Finan- debt collector can place.
cial Protection Bureau Collectors cannot lie to
report found that more collect a debt, by falsely
than one in four consum- representing themselves
ers felt threatened when or the amount you owe.
contacted by debt collec- And other than trying to
tors. The first-ever national obtain information about
survey of consumer experi- you, such as a telephone
ences with debt collectors number or whereabouts,
found consumers often a debt collector generally
faced calls that came too is not permitted to discuss
often, at odd hours and your debt with anyone oth-
contained warnings of jail er than you, your spouse,
time and other threats. or your attorney.
Some were contacted for YOU CAN TAKE ACTION
debts they didn’t owe. Report any problems you
And many said when they have with a debt collec-
asked the collector to stop tor to your state Attorney
contacting them, the re- General’s office, the Fed-
quest was ignored. eral Trade Commission and
CFPB Director Rich Cor- the Consumer Financial
dray said the report casts In this March 26, 2015, file photo, Consumer Financial Protection Bureau Director Richard Cordray Protection Bureau. Many
a “troubling light” on the speaks during a panel discussion in Richmond, Va. states have their own debt
industry, and that the bu- Associated Press collection laws that vary
reau is working to stop from federal law, so con-
abuses. But what are your Practices Act, also said YOU HAVE RIGHTS harass, oppress, or abuse tact your attorney gener-
rights when facing off with debt collectors generate Debt collectors can con- you, according to the FTC. al’s office for help.q
a debt collector? more complaints to its offic- tact you by phone, letter,
A few things to know: es than any other industry. email or text message, as
YOU ARE NOT ALONE While many debt collectors long as they follow the rules
The CFPB says debt collec- are careful to comply with and disclose that they are
tion is a multi-billion dollar consumer protection laws, debt collectors. It’s against
industry affecting 70 mil- some engage in illegal the law for a debt collector
lion consumers. People practices. to pretend to be someone
are most often contacted YOU ARE PROTECTED else to harass, threaten or
about medical and credit The Fair Debt Collection deceive you.
card debt. And more con- Practices Act provides They may not contact you
sumers complain to the protection for those being at inconvenient times or
CFPB about debt collec- pursued for personal debts, places, such as early in the
tion than any other finan- such as money owed on morning or late at night.
cial product or service. a credit card account, an And they may not contact
The Federal Trade Com- auto loan or a mortgage. you at work if they’re told
mission, which enforces It doesn’t cover debts in- not to.
the Fair Debt Collection curred to run a business. Debt collectors may not