Addressing Unfair Debt Collection Practices: What You Need to Know

What Is Considered Harassment by Debt Collectors?

Debt collection harassment can take many forms. Usually, it involves a debt collector contacting someone repeatedly within a short time by phone, email, text, or social media posts. It can also involve abusive, threatening, or obscene language. Debt collectors must identify themselves honestly, so if they refuse to say who they are and who they work for, that’s considered harassment.

As far as how often is too often for phone calls (including those that lead to voicemails), the Consumer Financial Protection Bureau (CFPB) requires collectors to call no more than seven times within seven days or within seven days of having had a conversation on the phone with the debtor. They’re also required to respect the debtor’s wishes if the debtor tells them not to call them at work.

What Aren’t Debt Collectors Allowed to Do?

Under California law, there are several things debt collectors aren’t allowed to do. They cannot call you outside the hours of 8 a.m.-9 p.m.; call repeatedly and harass you; lie about how much money you owe; use obscene or threatening language; access your social media accounts to post public messages about your debt; falsely claim things such as saying they’re law enforcement and you’ll be arrested if you don’t pay your debt; not tell you they’re a debt collector or use a fake company name; publish lists of people’s debts; collect debts once the statute of limitations has passed; or collect any debt or sue a debtor unless they verify the amount and ownership of the debt.

What Rights Do I Have Regarding Debt Collection and Collectors?

California law gives its citizens several rights, including the right to tell a debt collector (in writing) to stop contacting them. Debt collectors must honor that written request. They must also provide proof of the debt upon request and not give false statements about the amount or status of the debt.

Another vital right involves identity theft. If someone’s identity is stolen and used to create credit accounts, debt collectors may not go after the person whose identity was used.
People also have the right to dispute a debt as long as they do so within 30 days of being contacted by the debt collector.

What if the Debt Claimed by the Debt Collector is Incorrect?

Examining any claims made by a debt collector as soon as the first collection notice arrives is crucial. There are many reasons it may not be valid, including identity theft (someone stole your identity and opened credit accounts), you didn’t owe the debt to begin with, or you paid it in full.

You have thirty days to dispute the debt, which you need to do in writing. Then, the debt collector is required to provide evidence of the debt’s validity. It may be tempting to go back to the original creditor, but in many cases, the original creditor has sold the debt to the collector (sometimes for pennies on the dollar) and no longer owns the debt. Unfortunately, that means all communication must go through the debt collector.

What Is the Statute of Limitations on Debt Collection in California?

A statute of limitations is a legal period that, once it’s elapsed, means someone can’t file claims or lawsuits. While many people are familiar with the concept of a statute of limitations in personal injury law, they may not be aware that there’s also a limit on debt collection.

In California, debt collectors have a four-year statute of limitations to sue to collect a debt legally. The four-year period begins from the date of the last payment made or when the debtor agrees to pay the debt, whichever is later. This applies to unsecured debts, such as credit card debt, not to secured debts, such as mortgages.

Once the four years have passed, debt collectors may still try to contact someone to collect the debt, but they no longer have legal recourse, such as suing the debtor. However, it’s crucial to understand that it’s possible for debt collectors to reset the clock. If the debtor acknowledges the debt, makes a payment, or agrees to a debt settlement, the statute of limitations starts over, and the debt collector can begin legal action. That’s another reason not to enter communications with debt collectors without working with an experienced consumer protection attorney.

How Can I Address Unfair Debt Collection in California?

First, document all the ways the debt collector is abusing your rights. That includes keeping all written communications, voicemails, texts, screenshots of social media posts, and lists of how often and when they called. Then, contact an experienced consumer protection attorney who can help you decide if you should file a lawsuit against the collector.

What Should I Do if I’m the Victim of Unfair Debt Collection Practices in California?

Call Khosroabadi & Hill, APC, at 858-240-2093 for a free consultation. We understand how stressful and traumatic it can feel to be targeted by debt collectors, especially those using unfair collection practices. Our team of experienced, knowledgeable consumer protection attorneys understands the debt collection laws and the tactics these collectors try to get away with. We can review the specifics of your case to understand what is and isn’t allowed and help develop a plan to keep the unethical collectors away.