Has a Debt Collector Threatened to Seize Your Property
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General Rule: Unless the collection agency has a judgment for your debt, threats to seize your property violate the Fair Debt Collection Practices Act (FDCPA). Even if they have a judgment, there are requirements for how they may seize any property.
If you owe a debt to a collection agency, they will try different tactics to get you to pay your debt. They may even threaten to seize your property if you do not pay your debt. While there are certain situations when a debt collector may seize your property there are others that are a violation of your rights.
The Fair Debt Collection Practices Act (FDCPA) protects you from the unethical and abusive conduct of debt collectors. This includes the illegal seizure of your assets to pay a debt or threats to do so.
In this article, you will learn when a debt collector can and cannot seize your property. If they are making threats to do so, this article will provide steps to stop the debt collector.
A Debt Collector Threatened To Take My Property: Can They Do That?
The answer is, it depends. The seizure of property is not always illegal. A debt collector can seize certain property if they sue you and the court grants them a judgment. However, even then there are certain rules a debt collector must follow. This includes state law which often provides consumers with several exemptions.
Unfortunately, a debt collector will use various tactics to coerce a payment such as threatening to seize your property. Debt collectors believe that the fear of losing your property will lead you to pay off your debt.
Under the FDCPA it is illegal to make threats with the sole intent of coercing a payment. This means that a debt collector cannot make a threat for an action they do not have the legal authority to take. For instance, without a court order, a debt collector cannot claim they will seize your property for non-payment. In addition, even when allowed, a debt collector cannot threaten to seize your property if they do not intend to do so.
The FDCPA and Your Rights Against Threats and Other Harassing Behavior
The FDCPA provides protections to consumers dealing with a debt collector who is harassing them. Debt collectors will use various harassing tactics when trying to collect on a debt. The FDCPA seeks to ensure that the debt collection process should be fair and professional. As a result, it is illegal to make any type of unlawful threats simply to coerce a payment.
This is just one type of harassing behavior the FDCPA protects against. It also restricts the type of language a debt collector can use, how often they can contact you and more.
How Can I Stop a Collection Agency From Threatening To Seize My Property?
Even if you know they cannot take your property, it can be stressful dealing with these types of threats. Here are some options to put this illegal behavior to an end:
You can start by sending a demand letter to the debt collector identifying the illegal action. Indicate that any further violations may result in legal action. Send this notice by certified mail to prove receipt. If you want to end all communication, just send them a cease-and-desist letter. This will end all communication, not just the threats.
You also have the option of reporting the illegal behavior to certain federal agencies that may assist you. You can send general complaints about the debt collector to the Consumer Financial Protection Bureau (CFPB). For specific violations of the FDCPA, you can submit a complaint to the Federal Trade Commission (FTC).
If the debt collector is open to discussions, they may consider offering you a favorable settlement. Of course, this would depend on the type of evidence you have and your willingness to not seek legal action.
If the behavior escalates or causes you to suffer any loss, contact an attorney and sue the debt collector. A lawsuit will get the court involved which can force the debt collector to stop the illegal behavior. The court can also compensate you by making the debt collector pay statutory damages (up to $1,000) and other costs.
Conclusion
If a collection agency threatens to seize your property, contact a consumer rights attorney immediately. They can help you determine if what the debt collector is doing is illegal or not. If it is illegal they can assist you in taking action to stop their threats.
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