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Author: Sergei Lemberg
Can a Debt Collector Charge Me With a Crime?
![Can Debt Collectors Charge Crime]()
General Rule: No. A debt collector does not have the authority to charge you with a crime. In addition, it’s illegal to make threats of filing criminal charges under the Fair Debt Collection Practices Act (FDCPA).
A debt collector wants to get paid as quickly as possible. As a result, they can be quite aggressive in their collection efforts. Often, a collection agency operates right on the line of what is legal and illegal.
However, sometimes they engage in outright deception to get you to pay a debt. Any form of misrepresentation or deception in collecting a debt is illegal under the FDCPA. This type of conduct goes against the FDCPA’s goal of a transparent and fair collection process.
That being said, it is not always easy to identify when a collection agency is making a misrepresentation. So, can a debt collector charge you with a crime or threaten criminal action? Read this article to learn about what to do if a collection agency threatens you with this kind of action.
Can a Debt Collector Charge Me With a Crime?
No, a debt collector does not have any authority to charge you with a crime. Furthermore, there is no crime for failing to pay a consumer debt. That means that, regardless of how past-due a debt is, you cannot be charged with a crime.
In addition, a collection agency cannot make any threats of criminal charges. A debt collector may sometimes use this tactic to coerce a payment from you. The thought of going to jail for most is a frightening thing. However, if a collection makes any type of threat of criminal charges they violate the FDCPA.
Sometimes a collection agency will take this even further and impersonate law enforcement in the process. Impersonating a law enforcement officer is incredibly deceptive and is an egregious violation of the FDCPA.
These threats can come in multiple forms. However, the most likely scenario is over the phone. The collection agency knows that these types of threats violate the FDCPA and will not want to provide any evidence. That being said, in some states, you may be able to record the conversation as evidence of the violation.
Note: While there may be other actions you can take, FDCPA violations only apply to third-party debt collectors. An original creditor is not subject to the requirements of this federal law.
The FDCPA and Deception in the Debt Collection Process
The debt collection process is rampant with deceptive collection practices. This is one of the reasons Congress passed the FDCPA. In doing so, it made many different forms of deception illegal. These include:
- Reporting false information to credit bureaus;
- threats of a lawsuit with no intention of following through; and
- misrepresenting themself as a government agency.
The FDCPA also prevents various forms of harassment. This often goes hand-in-hand with these types of deceptive collection practices.
What Can I Do if a Debt Collector Threatens Criminal Charges?
If a collection agency threatens criminal charges they are acting in bad faith. You have a right to stop them and hold them accountable for their wrongdoing. Here are some options you can take:
- Send a Written Demand to the Collection Agency. Identify the violation in writing and demand it stop. If not, note that legal action will be forthcoming. You should send this type of letter by certified mail and keep a copy as evidence.
- File a Complaint Against the Collection Agency. You have the option of submitting a consumer complaint to the Consumer Financial Protection Bureau (CFPB). Since this is a violation of the FDCPA, you should also send a complaint to the Federal Trade Commission (FTC).
- Propose a Favorable Debt Settlement. If you have proof of the violation and a large debt, consider this option. A collection agency may agree to a discounted settlement if you agree not to file a lawsuit.
- File a Lawsuit Under the FDCPA. In some cases, this may be your only option. Consider filing a lawsuit if, after trying the previous options, the illegal behavior continues. You may also consider filing a lawsuit if you suffer damages.
Conclusion
It is important to understand how a collection agency may attempt to coerce you into making a payment. One way is through deception, including threats of criminal charges.
However, you now know this is a clear violation of the FDCPA. If you need assistance or have additional questions, speak to a consumer rights attorney. They will likely uncover additional violations committed by the collection agency.
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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