Are debt collectors constantly calling you?  If so, you may be wondering how to stop debt collection harassment.  Unfortunately, harassment from debt collectors can cause heavy emotional distress on borrowers who are behind on payments.  However, there are laws (both state and federal) that can protect you from debt collection harassment. The laws will protect you regardless of whether you owe money to your creditors.

Sadly, many debt collection agents do not follow the law, and can become threatening and abusive towards borrowers.  Aside from demanding payment, there is very little that debt collectors can do.  If you’ve pledged your car, house, or other physical property as collateral for a loan (secured debt), then the collection agency can seize the property that was pledged as collateral.  However, if you owe unsecured debt, the creditor is limited to three options.

First, if you fail to pay the debt, the creditor can stop doing business with you.  Second, the creditor can report your default to the credit bureau.  Third, the creditor can sue you in court.  Luckily, most creditors do not act on their threats to sue you.  However, if you are sued, you can settle the court case by paying the debt.  If the creditor obtains a judgment against you, the judgment does not force you to pay the debt.  What the judgment does is give the creditor the right to seize part of your property or income.

One of the best ways to stop debt collection harassment is to prevent abuse before it starts.  If you’re behind on payments, call the creditor and explain your situation.  Determine whether you actually owe the money, or if you have a defense that could eliminate your debt (either all of the debt, or part of it).  Try negotiating with your creditor or the collection agency.  Working out a compromise repayment plan can often stop debt collection harassment.

Another good way to stop debt collection harassment is to write a cease-and-desist letter. According to federal law, collection agencies must stop their collection attempts after they receive a written request to stop.  Unfortunately, this law does not apply to creditors who are collecting their own debts.  However, often creditors will stop contacting you if you send them a cease-and-desist letter.  If you decide to send a cease-and-desist letter, be sure to keep a copy of the written letter for your records.

It’s also a good idea to mail the letter using certified mail, with return receipt requested.  This will serve as proof that the debt collection agency (or creditor) actually received your letter.  If writing a cease-and-desist letter does not stop debt collection harassment, consider having your attorney send a letter to the collection agency.  Your lawyer can usually convince the debt collection agencies to stop harassing behavior.  He may also be able to raise legal claims against the debt collection agency if they are violating debt collection harassment laws.