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Author: Sergei Lemberg
Can a Debt Collector Threaten to Sue Me?
![Debt Collector Lawsuit Threats]()
General Rule: No, making threats of a lawsuit to coerce a payment is a violation of the Fair Debt Collection Practices Act (FDCPA). However, a collection agency has the right to file a lawsuit.
Lawsuits are sometimes a part of the debt collection process. If a debt remains unpaid, a collection agency has the option to file a lawsuit for the unpaid amount.
However, sometimes a person will get repeated calls from a collection agency with mere threats of a lawsuit. Yet weeks go by and the collection agency has not filed a lawsuit. It may be that the collection agency is trying to use the threat of a lawsuit to coerce you.
The Fair Debt Collection Practices Act (FDCPA) provides you with protection against various types of threats. Below are details on how threats to sue can violate the FDCPA. In addition, you will learn how to stop this illegal behavior.
A Collection Agency Keeps Saying They Are Going to Sue Me
Sometimes a collection agency will resort to various aggressive tactics to get you to pay a debt. One tactic they use is to threaten a lawsuit to pressure you into making a payment. If a collection agency has no intention of suing you, these types of threats are illegal under the FDCPA.
Also, each state has a statute of limitations. If an account is inactive for that period of time, the debt is no longer legally enforceable. It is illegal for a collection agency to threaten to sue if they know that the statute of limitations has expired on the debt.
Note: This type of behavior is illegal under the FDCPA for third-party debt collectors. The FDCPA does not apply to the original creditor.
False Threats and the FDCPA
The FDCPA explicitly prohibits false threats. As a result, it is illegal for a collection agency to make any idle threats merely to get you to pay a debt. This includes threats of a lawsuit, reporting you to a credit reporting agency and other actions they do not plan to take.
The FDCPA also prohibits other types of threats. For instance, it is also illegal to make threats about taking illegal activity such as criminal prosecution. Lastly, a collection agency cannot make threats of force or violence.
Addressing a Collection Agencies’ Threats
Making idle threats of a lawsuit is illegal. As a result, you have options to put a stop to these unwanted threats. If a collection agency is making idle threats, you can take the following action:
| Response |
Action to Take |
| Issue a Demand Letter |
Notify the collection agency of the illegal behavior in writing. If they do not stop, this will serve as evidence for later action you may take. |
| Send a cease-and-desist letter |
If you want all communication to end, not just the threats, send a cease-and-desist letter. A collection agency must end all communication if they receive this letter. Note: Consumers still must pay a valid debt. |
| Request Assistance from a Federal Agency |
One option is to submit a complaint to the Federal Trade Commission (FTC). They enforce the provisions of the FDCPA. You can also submit a consumer complaint to the Consumer Financial Protection Bureau (CFPB). |
| Hire an Attorney and File a Lawsuit |
If the behavior is ongoing or caused damages, consider taking the collection agency to court. They can end the illegal behavior and require the collection agency to pay you damages. |
| Request a Debt Settlement |
If you have proof of the violation, this may be a great opportunity to negotiate the settlement of your debt. A collection agency may provide a steep discount on your debt if you forego a lawsuit. |
Note: You will also want to address the debt itself if it is not yours. Sometimes, a collection agency has the wrong person or the debt is for the wrong amount. If this is the case, you will want to submit a dispute about the debt. You must do this within 30 days of receiving formal notification of the debt with a validation notice.
Conclusion
A collection agency sometimes resorts to filing a lawsuit to deal with a past-due debt. However, mere threats of a lawsuit to coerce a payment are unjustified.
If a collection agency threatens to sue you, seek advice from an attorney who specializes in handling these matters. They can take action to stop the threats. They can also defend you if the collection agency decides to actually file a lawsuit.
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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