Five Illegal Debt Collection Practices in North Carolina

Bankruptcy Lawyer Bryan W. Stone answers the question: “What are the pros and cons of bankruptcy?”


distressing-phone-call-Charlotte-Monroe-Lake-Norman-Bankruptcy-Lawyer-300x225People avoid debt collectors at all costs for a reason. Debt collectors have a bad reputation in North Carolina because they often disregard the law when trying to get a debtor to pay.

Moreover, a large percentage of consumers do not know their rights and do not know when debt collectors are crossing the legal boundaries. Just because you are behind on payments does not mean that debt collectors can violate your rights and can treat you however they see fit.

Yes, debt collector threats and harassment are a real thing. Filing for bankruptcy is arguably the most straightforward way to stop calls from debt collectors. Consult with a Charlotte bankruptcy attorney from Arnold & Smith, PLLC, to determine whether there is an alternative to bankruptcy in your particular case.

In the meantime, learn more about the illegal debt collection practices in the state of North Carolina. If you notice that a debt collector tries any of these practices, the debt collection company may be ordered to pay you a fine for breaking the law.


Collecting on Debts That Were Discharged in Bankruptcy

Debt collectors are prohibited from collecting on debts that were discharged in bankruptcy. Filing for bankruptcy means that debt collectors must stop their collection activities while your bankruptcy case is pending in court.

However, unfortunately, this does not stop many collectors in North Carolina from continuing to harass debtors. That is one of the creditor issues in bankruptcy that you can put an end to with the help of a detail-oriented bankruptcy lawyer by your side.

If you still think that bankruptcy is not the right option, it may be because you believe in one of the top 10 myths about bankruptcy in North Carolina.


Harassing After Being Asked to Stop

If you want to stop calls from collectors, you can request that all communication regarding your debts be done in writing. However, that request must be made in writing.

A debt collector continuing to call a debtor who asked to stop communication via phone is violating the Fair Debt Collection Practices Act.


Calling at Unreasonable Hours

Some debt collectors are so dedicated to their job that they may call debtors at unreasonable hours or an unreasonable number of times.

Federal law prohibits collectors from calling “too frequently,” though it does not define how many calls are considered too frequent. Also, if you receive calls before 8 a.m. or after 9 p.m., the debt collector is breaking the law.


Threatening Legal Action

Many debt collectors resort to threats as a way to intimidate debtors. Collectors may threaten legal action even when they do not have the right to do so or have no actual intention of filing a lawsuit. However, many of them do not realize that doing so is illegal. You cannot go to jail for merely failing to pay a debt.


Disclosing Information About Your Debt to Third Parties

A debt collector is breaking the law when he or she tells third parties about your debt. Many collectors do this in an attempt to shame or humiliate a debtor, which is why they disclose information about the debt to the debtor’s employer, friends, family members, or others.

In North Carolina, a debt collector cannot tell any third party about the debt you owe unless the third party is your attorney.

Know your rights to prevent debt collectors from violating the law and your rights. Debt collectors will be charged fines for each violation of state or federal law. If you were a victim of an illegal debt collection practice, contact our Charlotte bankruptcy attorney from Arnold & Smith, PLLC. Call at 704-370-2828 to get your consultation scheduled or find additional resources here.





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