Q: We have an ongoing dispute with our credit card company. We keep getting letters and emails from a collection agency, with a deadline to pay or they will grab our wages and hurt our credit. Is the collection agency legally allowed to threaten us time and again?
G.E., El Segundo
Ron Sokol
A: The Federal Fair Debt Collection Practices Act and the California Rosenthal Act each proscribe certain conduct by debt collectors. The Rosenthal Act is a bit broader because it applies to original creditors as well (such as the credit card company itself, as opposed to a third-party agency).
Bottom line, there are certain actions that are prohibited. One such instance is when you do not owe the debt, which is more common than you may imagine (for example, you are the victim of identity theft or the time to legally collect has past). Other impermissible activities include: Use or threats of physical force or criminal tactics to cause harm to you, your property or to your reputation; efforts at intimidation such as accusing you of criminal behavior for not paying the debt; defaming you, or threatening to do so; and threatening to seize your assets, garnish your wages or have you arrested, unless there is a legal basis to do so, and the debt collector actually is going to take such steps.
There are other tactics that are not permitted, such as trying to trick you into payment by pretending to be acting under governmental authority. There also are regulations to protect your privacy if the collector contacts or communicates with your employer.
Consulting with a lawyer may cost money that you prefer not to spend, but it may well be prudent to have knowledgeable guidance, if not representation, when you are being subjected to harassment or intimidation by an aggressive debt collector.
Q: If I am being harassed by a debt collector, what can I do?
R.W., La Verne
A: One step is to send a cease-and-desist letter. Make a solid record asking them to knock it off and why. If you have a basis to make claim against them for misconduct, explain that in the letter.
Also, filing a lawsuit is an option You can recover damages and, in some instances under the Rosenthal Act, you may recover an additional award of $100 to $1,000, as well as attorney fees. Note that the debt collector can try to avoid being sued by correcting a violation in a limited period of time (15 days), but if the damages have already occurred, then any cure will likely be ineffective.
Complaints can be submitted as well to various administrative agencies: The California attorney general’s office, the Federal Trade Commission and the federal Consumer Financial Protection Bureau. Each agency can readily be found online (simply type the name in your web browser).
Ron Sokol has been a practicing attorney for over 40 years, and has also served many times as a judge pro tem, mediator, and arbitrator. It is important to keep in mind that this column presents a summary of the law, and is not to be treated or considered legal advice, let alone a substitute for actual consultation with a qualified professional.
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