Debt collectors cannot lie or mislead you when collecting a debt

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from lying or misleading you when collecting debts. Probably the most common false or misleading representations made by debt collectors are when they misstate the character, amount, or legal status of a debt.

Examples of misrepresenting the “character” of a debt include: (1) threatening a lawsuit when the statute of limitations has expired; (2) claiming you owe a debt you are not legally obligated to pay, such as a debt of a deceased relative; and (3) suggesting a debt is due even though it has been discharged in bankruptcy.

Examples of misrepresenting the “amount” of a debt include: (1) failing to give you credit for payments you made; and (2) adding unauthorized charges, such as interest or fees, to the balance of the debt. This  prohibition would also apply to a debt that you’ve already paid in full.

Examples of misrepresenting the “legal status” of a debt include: (1) attempting to collect money on a non-existent judgment; (2) threatening immediate garnishment when judgment has not been taken; and (3) implying that a lawsuit has been filed or served.

In addition to misrepresenting the character, amount, or status of a debt, the FDCPA also specifically defines the following conduct by debt collectors as false and misleading:

• Telling you that they are an attorney when they are not
• Implying that you have committed a crime or that you will go to jail if you don’t pay the debt
• Threatening to garnish your bank account or wages if the debt collector does not intend to do so
• Implying that documents are legal process, such as a lawsuit, when they are not
• Suggesting that documents are not legal process or do not require action by you when, in fact, they do

The FDCPA does not limit its definition of false and misleading representations to the conduct described above. It forbids just about any conduct that can be construed as false or misleading.

If you’re dealing with debt collectors, make sure to download and use my free debt collection call log so that you can document all of the debt collectors’ communications. And if the debt collector does anything that you think was unfair; untrue; or harassing, oppressive, or abusive, please contact me to discuss the situation further. I offer a free case review for all FDCPA cases and if I agree to handle your case, you won’t have to pay me any money up front. My fees come from the money I recover from you if you win your case or accept a negotiated settlement.

(photo: Joe Penniston)