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Anya Bennett

Know How to File a Lawsuit against Debt Collection Agency for Harassment

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by , 08-08-2011 at 05:30 AM (16932 Views)
If you are missing to make your debt payments and feeling apprehensive that your lenders might sell the debts to a collection agency, then you do have reasons to worry. The collection agency doesn’t have the power to put you behind the bars, but they can certainly drive you crazy by repeated phone calls, millions of mails and billions of e-mails. Debt collectors often bend or break the rules of collecting debt and sometimes stoop to such an extent that collection efforts turn into sheer harassment. The debtor always has the right to sue the collection agency for such illegal actions. In fact, statistics issued by in June 2010, points out that credit collection agencies account for about nine percent of all complaints received by the Federal Trade Commission. Remember, debt settlement plan can spare you from all these unwanted hassles, therefore settle your debts before the things get really dicey.

Read on and stay prepared to take legal actions against the debt collection company.

• Under Fair Debt Collection Practices Act (FDCPA), debt collectors are only permitted to call consumers between 8 a.m. and 9 p.m., therefore any calls that do not fall within these hours will be considered as defiance of law. Make sure, you keep a record of the calls from the debt collector along with the time, frequencies and representative's name (if you attend the calls).

• Debt collectors are strictly not allowed to tell anyone else about your debt, except your spouse or the attorney who is handling your debt. However, the collectors can contact third parties in order to know ways to communicate with you. But during this, if they share any information with anyone besides the people that they are allowed to speak to about your debt, keep a log.

• A debt collector has no rights to threaten you or to use profane language or offensive terms against you. These actions violate the FDCPA and legal action can be taken against them for such events.

• According to the FDCPA, once the debtors ask the collectors to put a stop to their annoying calls, they are no longer allowed to call the debtors. However, if they keep on barging messages into your mail box and keep calling you, in spite of your forbiddance, you can sue them for sure.

• According to some state laws it’s permissible to record phone calls as long as one party in the phone call is aware of the recording. Check the laws in your state and if you are sure that you are not in violation by taping it, record the collection agencies' phone calls to prove that the collector is harassing you.

• Filling out a Cause of Action form at your local courthouse is the actual beginnings of a lawsuit against a debt collector. After the submission of the form to the court with the proper fees, the collector will be served with a summons.

You can also consider the option of reporting your case to your state's attorney general and the Federal Trade Commission, for legal action.

Keep all the above mentioned points in mind and once you file a lawsuit, bring all the documentation you have recorded, concerning the harassment. If you have any witness to testify that the collector has called while trying to collect debts, ask them to accompany you to the court. Remember, the more solid evidence you have to prove the collector’s harassment, the more likely your court case is going to go in your favor.