Protecting Yourself from Creditor Harassment in NJ

In bad economic times, more and more people are dealing with harassment by debt collectors, who are aggressively trying to obtain payment from people of limited financial means due to job loss, illness, or disability. What many people don't know is that there is a federal law that protects them from harassment by debt collectors called the Fair Debt Collection Practices Act. This legislation is often mirrored in state law, as in New Jersey. Although, strangely, it is not a shield against the creditor itself, it does provide remedies against collection agencies and law firms.

What They Can't Do

Among other things, the law regulates how debt collectors communicate with debtors. Here are a few examples of what they cannot do:

• Call at an inconvenient time. In the absence of knowledge of circumstances to the contrary, this means after 8am and before 9pm, local time at your location.
• Call you if you advise them that you are represented by an attorney.
• Call you at your job if they know or have reason to know that your employer prohibits you from receiving such communication.
• Call you if you notify them in writing (completed upon receipt, not mailing) that you refuse to pay the debt or simply want them to stop calling, except:
  • to advise you that the debt collector's further efforts are being terminated;
  • to notify you that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or
  • where applicable, to notify you that the debt collector or creditor intends to invoke a specified remedy.
• Communicate with third parties, except to get contact information, without your prior consent or that of the court. An exception to this would be communication pursuant to a "postjudgment judicial remedy," such as a bank levy or wage execution. A third party also does not include a spouse.

They Can't Harass You

In addition to this, there are certain behaviors in the course of communication that are considered to be harassment under the Act (although this is not intended to be an exclusive list):

• The use or threat of use of violence or other criminal means to harm your physical person, reputation, or property.
• The use of obscene or profane language or language the natural consequence of which is to abuse you.
• Causing a telephone to ring or engaging you in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass you. Basically, they can only all once per day if they succeed in getting ahold of you.
• Call without identifying themselves properly.

They Can't Lie to You

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. This is where they often get into trouble. This can include the false representation of:

• the character, amount, or legal status of any debt (e.g. it might be uncollectible because the statute of limitations has passed)
  
• any compensation which may be lawfully received by any debt collector for the collection of a debt (e.g. claims that you have to pay collection fees, attorneys fees, costs, etc.)
• The representation or implication that nonpayment of any debt will result in your arrest or imprisonment or the seizure, garnishment, attachment, or sale of your property or wages unless such action is lawful and the debt collector or creditor intends to take such action. This is also the case if said actions are imminent when they are not (e.g. if you do not pay by Thursday, we will attach your wages, when in fact no law suit has even begun yet).
• The threat to take any action that cannot legally be taken or that is not intended to be taken.
• The false representation or implication that you have committed any crime or other conduct in order to disgrace you.
• The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning you.

What Can Happen to Them If They Do

The penalties for debt collectors who violate any of the provisions of the Act can be significant. You can sue to recover actual damages that resulted from the violation (e.g. lost wages where you were fired because of personal calls received at work from the collector), statutory damages of up to $1,000 per violation, and court costs and attorneys fees. The only defense is where the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.

If you are being harassed by a debt collector, you should not have to put up with it. Contact me as soon as possible to discuss your rights and remedies.

Looking for more information about bankruptcy? Get the answers to the most frequently asked questions by downloading my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey. It will give you the answers you need all in one place. Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.