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Author: Sergei Lemberg
Can a Debt Collector Lie About My Debts?
![Debt Collector Lie About Debts]()
General Rule: No, this is a violation of the Fair Debt Collection Practices Act (FDCPA).
Debt collectors get involved when an account is past due. This usually happens after several months of non-payment to the original creditor.
When this happens, it often resorts to a variety of harassing and deceptive behavior. Fortunately, citizens have protections under the FDCPA. This federal law prohibits third-party debt collectors from engaging in various manipulative and unethical tactics.
So, can a collection agency lie about your debts? The short answer is, no. In this article, you will learn about how the FDCPA prohibits this type of deceptive behavior. In addition, you will learn what action you can take to stop this type of illegal action from collection agencies.
False Information About a Consumer’s Debts
It is infuriating if a collection agency is lying in any manner about your debt. This can happen at various stages during the collection practice.
For instance, a collection agency must send you a validation notice within 5 days of their first communication with you. This validation notice must include, among other things, the amount of debt you owe. Check to make sure that the collection agency provided the correct amount. Sometimes collection agencies try to add illegal fees and interest charges.
There are several other types of examples in which a collection agency may lie about your debt. Those include:
- Stating you owe a debt that is not yours. This includes debts that you paid off and those that belong to other people.
- Reporting negative information about your debt to a credit bureau that is false.
- Stating they can sue you for a debt in which the statute of limitations expired.
- Misrepresenting your rights regarding a debt and your ability to dispute it.
There are various types of other lies a collection agency may tell related to your debt. These lies range from who they are to the current status of your debt.
Prohibitions on Harassment: Understanding Lies and the FDCPA
The FDCPA protects you against various harassing tactics from collection agencies. This includes stating or publicizing any type of false information about your debt. Specifically, the FDCPA prohibits any false representation regarding the “character, amount or legal status of any debt.”
In addition to lying about your debt, there are other deceitful tactics collection agencies use that are illegal. These include threats, misrepresentations and other harassing behavior.
The FDCPA only applies to third-party debt collectors. Original creditors are not covered under the FDCPA. In addition, this federal law only applies to consumer and not business debts.
How Can I Stop A Collection Agency From Lying About My Debt?
You now know that a debt collector cannot lie about your debt. So, is there anything you can do to stop them? Of course. The below actions can assist you in stopping a collection agency from lying about your debt.
- You could send a demand letter detailing their lies and asking them to stop the illegal action. The letter should also state that if they do not stop, you will take legal action. This may be enough to stop the illegal conduct.
- If you want all communication to stop you can send the collection agency a cease-and-desist letter. If a collection agency receives this communication they must stop contacting you.
- Another option is to seek assistance from certain federal agencies. For violations of the FDCPA, you can send a complaint to the Federal Trade Commission (FTC). You can also submit a general consumer complaint to the Consumer Financial Protection Bureau (CFPB).
- In certain situations you may hire an attorney and sue the debt collector for violations of the FDCPA. A court can grant you injunctive relief to stop the illegal action. They also can compensate you with damages and make the debt collector pay your attorney fees and other court costs.
- If you have a larger debt, ask the collection agency if they are willing to settle your debt at a significant discount. They might agree to this option if you also agree not to file a lawsuit.
Note: If the collection agency is lying about you owing a debt, make sure you dispute it as soon as possible. The FDCPA requires you to dispute a debt within 30 days of receiving the official validation notice from the collection agency.
Conclusion
A collection agency has a right to collect on a debt from a consumer. However, they still have to go about this process in compliance with the FDCPA.
Is a collection agency lying about your debts? Take action to stop them today. If you need assistance in addressing this illegal behavior, hire a consumer rights attorney to represent you.
Additional Resources
About the author:
Sergei Lemberg is a consumer rights attorney, practicing since 2006, whose practice focuses on consumer law, class actions and personal injury litigation. He is known for a United States Supreme Court case (Facebook v. Duguid) defending consumers from autodialers under the Telephone Consumer Protection Act of 1991 to send unsolicited text messages. He is also the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.
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