Can a Debt Collector Threaten You with Legal Action

A collection officer can`t get you arrested because you haven`t paid a bill, and the FDCPA specifically prohibits them from threatening arrest or insinuating that they will if you don`t pay. They also should not threaten you with repossession of your property if they are legally unable to repossess it, and there is also a statute of limitations for the debt. If a creditor does not sue within this period, they will not be able to sue you unless you acknowledge the debt and make it “reactivated”. State laws regulate the statute of limitations for litigation and also determine when or if a debt can be reactivated. If your Home in Texas has been declared property, it cannot be used to pay off any debt – with the exception of debts incurred for the purchase of the home (i.e., a mortgage in default), for home renovations, for home equity loans, or to pay certain taxes. If you have an outstanding debt, a creditor or the collection agency they hire may receive a court order to try to withdraw money from your bank account in order to repay the debt. The court order is called seized. The CFPB has prepared sample letters to help you respond to a debt collector trying to collect a debt, as well as tips on how to use them. Sample letters can help you obtain information, set limits or stop any further communication or exercise some of your rights. If the debts you have exceeded have exceeded the statute of limitations, you will need to take additional steps to hold the collector liable for the violation of the law by threatening to sue you. If debt is a debt you could potentially face with a lawsuit, you`ll also need help. A debt collector usually can`t discuss your debt with anyone other than you or your spouse. If a lawyer represents you and you have communicated it to the collector, the collection agency must contact the lawyer.

A debt collector may contact other people to find out your address, personal phone number, and place of work, but usually can`t contact them more than once and not tell them you owe a debt. First of all, you can defend yourself against the lawsuit. If you have a potential defense, it may be helpful to make that argument in court. Common defenses against debt collection lawsuits include: The FDCPA makes it illegal for debt collection agencies to use unfair, unfair, or misleading debt collection practices. Debt collectors are companies that collect debts for other people. Many states have similar laws that protect consumers from harassment by creditors. The FTC ensures that debt collection agencies comply with the FDCPA. Third, you can file for bankruptcy. Depending on whether you file for chapter 7 or chapter 13, it may be possible to get debts paid off through the bankruptcy process. But even if it is not possible to repay your debts through bankruptcy, you can still take advantage of the automatic suspension.

This will immediately terminate any pending debt collection lawsuit against you. While the stay is in effect, debt collectors cannot attempt to collect your debt. If a creditor or debt collection agency has threatened to take action against you to which they are not entitled, even if that action is not illegal, they may be breaking the law. Please contact our office for a free, non-binding case review at 1-800-219-3577. What does the collection service provider have to tell me about the debt? The FDCPA sets out many collection measures that are illegal. Here are some of the important aspects of the law: The FTC has always been the FDCPA`s enforcement agency. But when the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 went into effect, the CFPB became the main federal agency tasked with enforcing the FDCPA. Nevertheless, you can report violations of the FTC`s FDCPA as well as any other illegal business practices such as fraud and fraud.

Kimberly Berson is a lawyer with over twenty-five years of legal experience and a specialization in bankruptcy law and bankruptcy litigation. In addition, Kim is an instructor in the Paralegal Certificate Program at Hofstra Law School, where she is a bankruptcy lawyer, Contracts La. Read more about attorney Kimberly Berson In most lawsuits (civil and criminal), there is a time limit within which a plaintiff can sue a defendant. These timelines vary depending on the state and type of lawsuit, but they often vary from three to six years for most debt collection actions (often filed as a breach of contract lawsuit).