Dealing With Collection Agencies FAQ

Questions:

• Should I deal with debt collectors or try to avoid them?
• Collection agencies have been calling me all hours of the day and night. How can I get them to stop contacting me?
• The collections department of a local merchant is harassing me. Can I do anything about it?
• A bill collector insisted that I wire the money I owe through Western Union. Am I required to do so?
• Can a collection agency add interest to my debt?
• A collection agency sued me and won. What collection measures can it now take against me?

Answer:

The collections department of a local merchant is harassing me. Can I do anything about it?

Unfortunately, the federal Fair Debt Collection Practices Act (FDCPA) does not apply to the collection department of a creditor (it only applies to outside collection agencies). However, many states have fair debt collection laws that do cover creditors' collection departments.

Check with your state consumer protection office to see if your state law applies to in-house collectors and to find out what types of collection practices it prohibits. (To locate your state consumer protection office, see Nolo's article State Consumer Protection Offices.)