How to Stop Creditors from Harassing You Multiple Times a Day
Dealing with creditors who call you multiple times a day can be a frustrating and stressful experience. Understanding the different types of creditors and the legal protections available under the law can help you take control of the situation. In this article, we will explore the rights and options you have when it comes to stopping creditors from harassing you.
Understanding Creditors
Creditors can be categorized into three main types: original creditors, collection agencies, and junk debt buyers. Each type has its own rules and regulations regarding communication and debt collection practices.
Original Creditors
Original creditors include lenders like banks, credit card companies, or other financial institutions who originally lent you money. Unlike debt collectors, these original creditors are not subject to the Fair Debt Collection Practices Act (FDCPA). Therefore, they can continue to contact you about your debt without legal restrictions, unless your state has passed more consumer-friendly legislation, such as the one in California.
Collection Agencies
Collection agencies are third-party companies that purchase debts from original creditors and are then responsible for collecting the debt. These agencies are subject to FDCPA regulations. To stop collection calls from a debt collector, you simply need to request that they cease contact. While a cease and desist order is not necessary, you can send a written or verbal request. A simple letter or even a phone call is sufficient to make the request effective.
Junk Debt Buyers
Junk debt buyers are companies that purchase large volumes of disputed or uncertain debts at a deep discount and then attempt to collect on them. The FDCPA is not entirely clear about its applicability to junk debt buyers. However, recent interpretations by the Consumer Financial Protection Bureau (CFPB) suggest that the act does apply to junk debt buyers, and they have generally accepted this interpretation.
Taking Action
If you are being harassed by creditors, taking a proactive approach to stop the calls can significantly improve your situation. Here are the steps you can take:
Documentation and Request
1. **Documentation**: It's essential to document all instances of creditor harassment. Record dates, times, and what was said during these interactions.
2. **Cease and Desist Order**: Obtain a cease and desist order from a reliable source. The order should be specific to your state's laws. Once you have the order, send it to the creditors and collection agencies involved.
3. **Mail Certification**: Send the cease and desist order via U.S. Postal Service certified mail. This ensures that the order reaches the creditors and provides proof of delivery. Keep the return receipt, which includes a 20-digit tracking code, as proof of mailing.
Legal Advice and Caution
While taking action to stop creditor harassment is crucial, it's also important to be cautious. Some creditors or debt buyers may sue you if you prohibit them from contacting you. Most credit experts recommend exercising caution until the debt is outside the statute of limitations, as you can then more easily defend against such a lawsuit.
In conclusion, understanding the different types of creditors and the legal actions you can take can help you alleviate the stress of constant creditor calls. By documenting instances of harassment, obtaining and sending a cease and desist order, and remaining cautious, you can effectively manage and stop the harassment from creditors.