Your right to submit complaints against debt collectors and other businesses that violate regulations doesn't prevent them from trying to secure payment. But any failure by a collector to practice fair debt collection methods may result in serious consequences for both him and his business.
Filing a Complaint
If you believe a debt collection agent or agency is acting inappropriately, file a complaint with the Federal Trade Commission (FTC). While the FTC doesn't investigate every complaint, it assembles them into a database called Consumer Sentinel, which is available to a number of law enforcement agencies at the federal, state and local levels. You may wish to file complaints with your state Department of Justice or attorney general's office, and with organizations like the Better Business Bureau. The FTC may investigate agencies that are the subject of several complaints. Investigation can lead to prosecution and financial consequences if the company's practices are proven illegal.
Debt Collection Complaints
The more information you give when you file a complaint, the greater the chances that a potential investigation will be effective. Identify the debt collection agency, what inappropriate practices were used (such as calling you at work or failing to notify you of your debt), the nature of your communications with the agency and the amounts paid and owed. You may have grounds for a lawsuit if an agency: • Acts in a harassing or deceptive manner • Gives false information about your credit or publishes your name • Implies that you've committed a crime • Threatens jail time • Threatens to take possession of your property on an unsecured loan • Uses unfair debt collection practices.
Consequences of Complaints
Unfair practices by a collector don't cancel your debt. You may, however, be able to sue and recover attorney fees, court costs and damages if the debt collector's methods violated the Fair Debt Collection Practices Act or other relevant laws. State laws vary and may provide additional rights or options, depending on where you live. Keep copies of any written communications between you and the agency, as well as any documents sent (such as bills stating the amount of your debt or statements to show how much you've paid). If you know the facts regarding consumer debt collection complaints, you'll know if a debt collection agency is trying to use scare tactics or illegal methods to pressure you into paying.