What Happens If a Debt Collector Threatens to Send Me to Jail?

General Rule: It is illegal for a debt collector to threaten to send you to jail. If a third-party debt collector does this, it is a violation of the Fair Debt Collection Practices Act (FDCPA).

In an attempt to collect a debt, a collection agency may resort to many different tactics. Some of these tactics involve deception and are a violation of your rights under the law. However, just because it’s illegal does not mean a debt collector won’t try their luck. This includes making threats to send you to jail for failing to pay a debt.

That is why it is important to understand your rights and protections under the FDCPA. This includes prohibiting a host of deceptive and harassing debt collection practices.

The information below will highlight how this type of threat is used to violate your rights under the FDCPA. In addition, you will gain valuable insight into how you can put a stop to this type of deceptive debt-collection practice.

Can a Debt Collector Threaten to Send Me to Jail?

No, it is illegal for a debt collector to make this type of threat. It’s important to note that there are a couple of ways a debt collector may make this type of threat.

First, they may represent themselves as a collection agency but inform you that they will report you to law enforcement. They may state that they are going to file a complaint or refer you to criminal prosecution. However, the ultimate threat is the same: pay your debt or you will go to jail.

The second way a debt collector may do this involves greater deception. In some cases, a debt collector will pretend to be law enforcement. You can imagine how intimidating it may be to receive a call from law enforcement with the threat of going to jail. It’s not surprising that this is an effective, albeit illegal, tactic for collection agencies.

While these threats may sometimes come by mail, it is more likely to occur during a phone call. This allows an unscrupulous debt collector to deny the allegation later. Regardless, it’s important to know that you cannot go to jail for failing to pay a personal debt. If you are receiving this type of threat, know that it is a scam.

Note: You can only file a lawsuit for these illegal threats under the FDCPA against a third-party debt collector. For an original creditor, you will need to seek counsel for alternative options.

Deception and Threats Under the FDCPA

A primary reason for the enactment of the FDCPA is to ensure the debt collection process is fair. It’s hard to have a fair process if a debt collector is being deceptive or making illegal threats. That is why the FDCPA provides broad protections on many types of threats. Those include:

• Threats of Jail
• Threats of Violence or Force
• Threats of Reporting False Credit Information
• Threats of lawsuit (with no intent of filing a lawsuit)

Of course, the FDCPA does not prohibit only threats. The FDCPA prohibits many different forms of deception.

How Can I Stop These Threats?

If a collection agency is threatening to send you to jail they are violating the law. When this occurs, you are within your rights to take the following action:

• Contact the Collection Agency. You can let them know of their violation in writing and demand that they stop. Alternatively, you can send a cease-and-desist letter. This letter will end all communication from the collection agency.
• File a Consumer Complaint. You can submit a consumer complaint about a collection agency to the Consumer Financial Protection Bureau (CFPB). In addition, you should also report the debt collector to the Federal Trade Commission (FTC) for a violation of the FDCPA.
• Offer to Settle a Debt. This is a good strategy if the debt collector is willing to agree to a steep discount on the debt. They may agree to your offer if it helps them avoid a lawsuit.
• File a Civil Lawsuit. Under the FDCPA, you can sue a debt collector to stop the illegal action. If guilty, a debt collector must pay you statutory damages (up to $1,000), actual damages and court costs.

Conclusion

Paying a debt is a stressful enough ordeal without the threat of going to jail. However, now you know that no one, including a debt collector, can send you to jail for a personal debt.

Whether your situation is complex, or you have questions, you can discuss the details with a consumer rights attorney. They can make sure all debt collection violations are properly addressed.