Start Filing Complaints
Check to see if debt collectors are required to be licensed in your state. If so, find out how to complain to the state agency that regulates them.
I live in Arizona, and debt collectors are required to be licensed. If there are laws requiring a debt collector to be licensed and you can’t find the debt collector on the list of licensees in your state, they are breaking the law.
Use this to your advantage when filing complaints!
I recently had an issue with an abusive debt collector calling me for someone in my family. I told the guy to stop calling and he became verbally abusive. I filed a complaint with the Arizona Department of Financial Institutions and they got involved.
Interestingly enough, the Department acted as an intermediary between me and the debt collection agency. Their compliance department got involved, which made it really interesting. Their compliance officer said all the right things to the Department, but the outcome was what I wanted – their abusive phone calls to stop. I never heard from them again.
A debt collector should also be registered with your Secretary of State’s office as a corporate entity, either domestic, meaning they exist under the laws of your state, or foreign, which means they are formed under the laws of a state besides yours. Most foreign companies should obtain authority to conduct business in your state if they are operating as a debt collector in another state.
If they are not registered to do business in your state, you should be sure to report that information to any regulatory authorities who you may involve in your situation.
Also, don’t forget to file a consumer complaint with your State’s Attorney General. These agencies exist to protect consumers. Many times, their office will serve as an intermediary between you and the debt collector and they will make sure they aren’t doing anything illegal going forward if you have the State’s Attorney General’s office involved.
Finally, don’t forget the Better Business Bureau. File a complaint with them as well.
File a complaint with anyone who has a procedure set up to intervene on your behalf and keep good records of the interactions between the agencies. Create a paper trail and watch for admissions of wrongdoing in the letters from the debt collectors and keep that information in your arsenal in case things escalate further.
DISCLAIMER:
****CHRISTINE SPRINGER IS NOT A LICENSED ATTORNEY OR FINANCIAL ADVISOR. THIS BLOG IS COMPRISED OF HER OPINIONS, OBSERVATIONS AND INTERPRETATIONS AND IS NOT INTENDED TO BE CONSTRUED AS LEGAL ADVICE. PLEASE CONSULT WITH AN ATTORNEY BEFORE RELYING ON OR TAKING ANY ACTION BASED ON THE INFORMATION IN THIS BLOG.****
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