• 12
  • December
    2011

Job losses and tough economic times have made it more difficult for some people to keep current on his or her bills. As the debt-collection industry has stepped in to collect delinquent bills, complaints about debt collector harassment have increased. Two recent cases highlight the discontent that people are experiencing when working with debt collectors - and illustrate just how inappropriate some debt collectors can be.

Debt Collection Complaints

The Federal Trade Commission (FTC) is the federal agency that handles complaints regarding debt collectors. Recently, the FTC received a complaint from a woman who was having difficulties paying for her daughter's funeral. The woman alleged that a debt collector threatened to dig up her daughter's body and hang it from a tree if she did not pay. They also allegedly called her "white trash" and said that they would shoot her dog.

In another instance, it was claimed that a debt collector allegedly lied to customers, telling them that they could be arrested for not paying their debts. The employees of the debt collector supposedly posed as lawyers and process servers and falsely claimed that a lawsuit had been filed against the customer. The debt collector allegedly told the customers that they could "settle" the lawsuit if they paid off the entire debt plus legal fees and court costs.

In both of these cases, if the allegations are proven true then the debt collector may have violated federal law. By law, it is illegal to demand more than the actual amount of debt that a customer owes. It is also illegal to threaten to use violence or to use obscene or offensive language when collecting a debt. If you are facing debt collection efforts, an experienced bankruptcy attorney can help you consider your options and recommend a debt relief option based on your individual situation.