Debt Collection Abuse is the use of unfair, harassing, or deceptive practices in collecting a consumer debt. If you owe a consumer debt and the lender believes that you are behind in your payments, chances are good that you will eventually be contacted (generally by telephone) by people trying to collect the debt.
Sometimes, these calls come from the lenders or creditor themselves. For example, if you are somewhat behind in your credit card payments, you are likely to be contacted by the credit card bank's in-house collections department.
When debts become very delinquent or cannot be recovered by the in-house collectors, the debt is often transferred to a debt collection company. Sometimes the debt is simply "placed" with this collector for a limited time, during which the collector gets to keep as payment a percentage of what is recovered (if he can recover it). In other cases, a recovery company buys "bad" debt at a discount. As the owner of the debt, the company then gets to keep whatever it can collect.
Unfortunately, whether due to time pressure or the fact that they have essentially staked their own money on their ability to collect the debt, debt collectors sometimes engage in abusive tactics. Such tactics include:
- threatening to harm you or your family
- using obscene or profane language
- repeatedly using a telephone to annoy you
- making false statements; for example, debt collectors may not:
*falsely implying that they are attorneys or government
representatives or send anything that looks like an official
document from a court or government agency when it is not; or
otherwise use a false name
*falsely implying that you have committed a crime;
*falsely representing that they operate or work for a credit
bureau;
*telling you that papers being sent to are legal forms when they
are not.
Debt collectors are also not allowed to tell you that:
- you will be arrested if you do not pay the debt;
- that they will seize, attach, or sell your property (unless they have
the legal right to so).
- that they will garnish your wages, unless it is legal for them to do so
(note that South Carolina is among a handful of states in which
wage garnishment is not lawful [except for child support and a few
other types of debt]. But in most states, garnishment is legal. Thus,
out of state debt collectors frequently and illegally threaten to
garnish the wages of South Carolina residents).
- that actions (such as a lawsuit) will be taken against you when such
action legally may not be taken, or when the collector does not
really intend to take such action.
All of the above conduct violates South Carolina law. §37-5-108. Much of it would also violate the federal Fair Debt Collection Practices Act (FDCPA), 15 USC §1601. Unlike the FDCPA, however, South Carolina's law applies to parties collecting their own debts, whereas the FDCPA covers only collectors who are not the original creditors.
However, the FDCPA does provide two important protections to you -- the ability to stop or limit contacts, and the right to make the collector "verify" the debt. Like South Carolina law, the FDCPA gives you the right to sue the debt collector when the collector does not follow the law.
We have represented consumers in every one of the above violations. If a creditor or collector is harassing you, contact us. We will work to put an end to the abuse immediately, and we will pursue your remedies aggressively.