I have heard from many people that are feeling the effects of the recession about the seemingly never-ending phone calls from their creditors trying to collect on some debt.  In these cases, the calls may or may not rise to the level of illegal debt collection practices, but the frequency of the calls and the unprofessional attitude of the callers have reached the point that decent people are feeling intimidated and are avoiding answering their phones altogether for fear of another collection call.

It amazes me how many people have heard of the Fair Debt Collection Practices Act, but don’t know about the tools available to them under the Act to help them relieve the stress of the constant collection calls.  Did you know that you can put a stop to these calls by simply telling the creditor not to contact you?  That’s right, even if you owe the money, you have the right to demand that the creditor cease communications with you at home, at work, on your cell phone, or anywhere else.  This applies not just to credit card debt collectors, but to any debt collectors, even your home mortgage lender.

Section 805(c) of the Fair Debt Collection Practices Act is called CEASING COMMUNICATION and provides, “If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collec­tor shall not communicate further with the consumer with respect to such debt.”

By writing a simple letter to the creditor telling them not to contact you, you can end those annoying and harassing phone calls.  (For a free sample letter go to www.dbalawfirm.com/creditorletter.aspx).  Once you have notified the debt collector in writing not to contact you, they may only contact you to inform you that they are terminating their collection efforts or if they are seeking to enforce a remedy, such as obtaining a judgment, and in no event after such cease communication notice can they demand payment.

Notwithstanding the Fair Debt Collections Practices Act, it is important to keep all records of all communications from and to your creditors, including phone calls.  A phone log is good, but recording the call is even better.  If a creditor calls you, make sure you first tell them to please hold while you get your recorder and that you will be recording the call.  In the event, and it does happen, that a creditor continues to call you or communicate with you after your have sent your cease communications letter, and you have the proof, then the tables are turned and they can be liable to you for damages.  In such event, you should contact the Attorney General of Virginia’s office to file a formal complaint.  With your proof in hand, the creditor will be subject to statutory damages of up to $1,000 per violation.  In addition, if you can show additional damages you may be entitled to punitive damages and reimbursement of any attorney’s fees incurred.

While the Fair Debt Collection Practices Act does require any cease communication notice to be in writing to be legally enforceable, many creditors will quickly cease the annoying phone calls if you simply advise them when they call that you are aware of your rights under the Act and that you do not want them to contact you again.  At the very least, you will get a much more professional and courteous call. 

In addition to the Ceasing Communication provision of the Fair Debt Collection Practices Act, there are other provisions in the Act specifically to protect you, the debtor from the tactics of the creditor, including for example what constitutes unfair collection practices and how to dispute a debt.  For an easy to read copy of the Act, please go to the FTC’s website at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf.

Of course sending a cease communication letter does not relive you of any legitimate obligations to pay a debt (although there are ways to obtain such relief, for example by filing for bankruptcy protection).  But whether you dispute a debt or not, put a stop to those annoying creditor phone calls and put your creditors on notice that you know your rights by sending them a cease communications letter - and don’t let the creditors intimidate or harass you.  Failure to pay a debt is not criminal and creditors do not have the right to make you feel like one.  Times are tough and many of us find ourselves in financial situations we never dreamed we would be in. If you know your rights, there is no reason that you should have to screen or avoid your phone calls.

Duncan M. Black, Esq. is the founder of the law firm Duncan Black & Associates, PLC (www.dbalawfirm.com) and the real estate brokerage firm of DBA Realty, LLC (www.dbarealestate.com) both located in Lansdowne, VA.  The law firm’s practice includes real estate, finance and bankruptcy law.