Fighting Illegal Debt Collection Practices
Debt collectors have the right to pursue legitimate debts, but they must follow applicable federal and state laws when doing so. Consumers do not have to tolerate abusive, deceptive, or unfair collection practices simply because they owe money.
If you are experiencing aggressive or questionable collection activity, understanding your rights can help you determine how to respond. A debt collection attorney in Chicago can review the circumstances and explain the protections that may apply.
Understanding Your Rights Against Debt Collectors
The Fair Debt Collection Practices Act (FDCPA) provides protections against certain practices by covered debt collectors. Additional federal and Illinois laws may also provide consumer protections depending on the circumstances.
Debt collectors generally must provide accurate information and follow applicable rules when communicating with consumers and attempting to collect debts.
Not every aggressive collection attempt is illegal, so the specific facts and communications involved should be carefully reviewed.
Examples of Potentially Improper Collection Practices
Depending on the circumstances, potentially unlawful collection conduct may include:
- Repeated or excessive collection calls
- Using threatening, abusive, or harassing language
- Misrepresenting the amount or legal status of a debt
- Making false statements about legal consequences
- Attempting to collect a debt you do not owe
- Improperly communicating with third parties about your debt
- Calling at prohibited or inappropriate times
- Misrepresenting the collector’s identity
- Using deceptive methods to obtain payment
- Continuing certain collection activities in violation of applicable law
Whether a particular action violates the law depends on the facts of the situation and the laws that apply.
What Should You Do if You Dispute a Debt?
If you do not recognize a debt or believe the amount is incorrect, you may have rights to dispute the debt and request information from the collector.
Keep copies of letters, emails, account statements, collection notices, and other communications. It may also be useful to maintain records of collection calls, including dates, times, and the identity of the caller.
Do not ignore court documents or collection lawsuits. Failing to respond within applicable deadlines may affect your legal rights.
Debt Collection Lawsuits and Judgments
Collection efforts can sometimes lead to a lawsuit. If a creditor or collector obtains a judgment, additional collection actions may become available subject to applicable law.
These could include:
- Wage garnishment
- Bank account levies
- Judgment liens
- Other judgment enforcement procedures
A Chicago debt defense lawyer can help you understand the lawsuit, potential defenses, and available options for responding to creditor actions.
Can Bankruptcy Stop Debt Collection?
When financial problems extend beyond a single collection dispute, bankruptcy may also be worth considering.
Filing Chapter 7 or Chapter 13 bankruptcy generally creates an automatic stay that stops many qualifying collection activities while the bankruptcy case is pending.
Depending on the circumstances, the automatic stay may affect collection calls, lawsuits, wage garnishments, bank levies, and other creditor actions. Exceptions apply, and bankruptcy is not the appropriate solution for every situation.
Take Action Against Improper Debt Collection
If you believe a debt collector is using abusive, deceptive, or otherwise unlawful collection practices, understanding your rights is an important first step.
Consider speaking with a Chicago debt collection attorney or bankruptcy attorney to review the collection activity, understand available consumer protections, and explore options for addressing the underlying debt.
