They'll awaken a consumer in the morning. They'll call his cell phone if they have it during the day. They'll interrupt dinner. In fact, when it comes to raising a ruckus and just becoming a general overall nuisance, third-party collection agencies make plain old telemarketers look like amateurs.
Fortunately, a federal law reigns them in, and consumers have every right to invoke such protections.
The Fair Debt Collection Practices Act (FDCPA) limits what collectors can do in pursuit of their paydays. Among other requirements, for example, collectors must prove (or "validate," to use the Act's language) any allegedly outstanding debt upon request. In other words, the collection agency must show that the alleged debt was ever incurred, that it was not paid, and that it was transferred from the original creditor to them.
Moreover, collectors are prohibited from telephoning too early or too late in the day, customarily interpreted by courts as before 8 a.m or after 9 p.m.
They also may not threaten or insult the consumer in any way, must clearly identify themselves, and may not masquerade as law enforcement entities, credit bureaus, or anything else.
Perhaps the best protections afforded by the FDCPA are the provisions which limit direct contact with consumers. The law prohibits collectors from telephoning a consumer at all, so long as they have been properly informed of that preference.
Such a "cease and desist" notice should be sent to an offending collector by certified mail with return-receipt requested. That way, the affected consumer can produce a record of the notification if the collector continues to telephone incessantly and the matter escalates legally.
If you believe a third-party collector is behaving in an unethical, threatening, or illegal manner, keep careful notes and seek legal counsel. You may even be entitled to a monetary award if the harassment is a clear violation of the federal statute.
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