Dealing with debt collectors can be stressful, intimidating and confusing. When they call asking for information you may be tempted to lie or bend the truth to get them off your back. But is this legal? And is it the right thing to do ethically? In this article, we’ll explore whether you can lie to a debt collector, the potential consequences, and tips for handling these difficult situations honestly and effectively.
The Legality of Lying to Debt Collectors
Legally speaking, it is not advisable to lie to a debt collector. While there are no specific laws prohibiting making false statements, lying could potentially constitute fraud or violate other consumer protection laws. Some key legal considerations include
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FDCPA – The Fair Debt Collection Practices Act prohibits abusive, deceptive, or unfair debt collection practices Intentionally providing false information could be construed as an attempt at fraud
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State Laws – Many states have additional laws regarding proper debt collection conduct. Lying could lead to violations at the state level as well.
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Obstruction of Justice – If formal legal action is taken by a creditor, lying under oath or to investigators could amount to obstruction of justice.
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Voiding the Debt – In some cases, fundamentally misrepresenting your situation could potentially void the validity of the debt, releasing you from the obligation to repay. However, don’t count on this, as it is not a reliable legal strategy.
While the odds of being criminally prosecuted for lying to collectors are low, it does open up the possibility of lawsuits or other legal trouble. Consumers have the right to simply refuse to engage at all with collectors, making lying an unnecessary legal risk.
Ethical Problems with Lying to Collectors
Beyond potential legal issues, lying to collectors raises some serious ethical concerns:
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The Golden Rule – Lying is simply not treating others as we would want to be treated. Collectors are just people doing their jobs.
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Personal Integrity – Lying chips away at our own sense of integrity and self-respect. It makes us unreliable narrators of our own stories.
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Unnecessary – Consumers have many rights when dealing with collectors, like requesting validation of debts. Lying shouldn’t be seen as the easy way out.
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The Slippery Slope – Small lies tend to lead down a path of bigger lies. Falsifying information to collectors could open the door to more unethical behavior.
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Hurts Credibility – Getting caught in a lie damages credibility and trustworthiness, which could have wider implications with other creditors.
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High Road – Taking the ethical high road almost always works out better in the long run, leading to self-respect and respect from others.
While lying may provide temporary relief or an easy escape, it often backfires by making situations worse overall. Being honest and standing up for your consumer rights is the best policy.
Handling Collection Calls Honestly and Effectively
Dealing with collectors isn’t easy, but here are some tips for handling calls ethically and efficiently:
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Know your rights – Be prepared by learning consumer protections regarding debt collection under the FDCPA and state laws.
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Request validation – Always ask for validation of the debt and proof you actually owe it. Many collection attempts are false or exaggerated.
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Mail written disputes – Follow up any disputes or requests for validation in writing via certified mail. This creates a legal paper trail.
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Limit contact – You have the right to limit how often collectors contact you. Send cease and desist letters if needed.
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Negotiate – Try reasonable good faith negotiations to settle old debts at a reduced lump sum. Get any deals in writing.
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Avoid panic – Don’t let intimidation tactics lead to rash decisions. You have rights.
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Seek legal advice – If you feel collectors are violating laws, contact an attorney about possible legal remedies.
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Document everything – Keep detailed records of all collection contacts, letters, and agreements.
The bottom line is that lying to collectors is neither an advisable legal strategy nor an ethical approach. But with the right preparation and an honest, common sense approach, consumers can resolve debts fairly while upholding their rights. The truth is always the best policy when dealing with collectors.
Harassment and Call Restrictions
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
Debt collectors cannot make false or misleading statements. For example, they cannot lie about the debt they are collecting or the fact that they are trying to collect debt, and they cannot use words or symbols that falsely make their letters to you seem like theyre from an attorney, court, or government agency.
Debt collectors cannot call you at unusual or inconvenient times or places. Generally, they may call between 8 a.m. and 9 p.m., but you may ask them to call at other times if those hours are inconvenient for you.
Debt collectors may send you notices or letters, but the envelopes cannot contain information about your debt or any information that is intended to embarrass you.
You may ask a debt collector to contact you only by mail, or through your attorney, or set other limitations. Make sure you send your request in writing, send it by certified mail with a return receipt, and keep a copy of the letter and receipt. You also have the right to ask a debt collector to stop contacting you entirely. If you do so, the debt collector can only contact you to confirm that it will stop contacting you and to notify you that it may file a lawsuit or take other action against you. Remember that if you ask a debt collector to stop contacting you entirely, it may still sue you and may still report your debt to credit reporting companies, which will likely hurt your credit.
For information about when a debt collector can contact your employer or other people, see Debt Collector Contacting Your Employer or Other People.
Debt Collector Contacting Your Employer or Other People
Employers
Debt collectors may contact your employer but only:
- To verify your employment;
- To get your location information;
- To garnish your wages (that is, taking payment from your paycheck), but only after it sued you and a court entered a judgment against you;
- If the debt is a medical debt, to find out whether you have medical insurance; or
- You or your attorney agreed in writing that the debt collector may contact your employer.
A debt collector may call your employer once to verify your employment. Healthcare providers and their agents may also call your employer to find out if you have medical insurance. Otherwise, the debt collector must contact your employer in writing. If the collector receives no response to its written contact within 15 days, it may then call or otherwise contact your employer.
Other People
Generally, a debt collector cannot contact your family, neighbors, or other people about your debt unless:
- The debt collector is doing so to get your location information;
- A court has given the debt collector permission to do so;
- If, after the debt collector sued you and a court entered judgment against you, it is reasonably necessary to contact other people to effectuate the judgment; or
- You or your attorney agreed in writing that the debt collector may contact other people.
A debt collector can contact your spouse. A debt collector can contact your parents or guardian if you are under 18 years old or live with them. A debt collector can also contact your attorney and, if otherwise allowed by law, credit reporting companies (Equifax, Experian, and TransUnion) about your debt.
For more information about debt collection restrictions, see Harassment and Call Restrictions.
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FAQ
What should you never say to a debt collector?
“This debt belongs to me.”
You should never acknowledge ownership of a debt during initial contact with a collector. While it may seem like a valid debt, it’s important to verify that the debt is actually yours and that the debt is still legally collectible.
What is the 11 word phrase to stop debt collectors?
If you want to stop debt collectors from calling you, the phrase to use is: “Please cease and desist all communication with me about this debt.” This simple phrase, when sent in writing to a debt collector, legally requires the debt collector to stop contacting you except to notify you of specific actions, such as …
What is the 777 rule with debt collectors?
Can you refuse to pay a debt collector?