Copyright (c) 2010 Suzy Vanstrusen

As a borrower, we are required to pay back what we owe out creditors. However, there are instances where we encounter problems that makes repayment a bit difficult. When a debt is left unpaid for a long period of time, a creditor then has an option to assign the collection to another agency. This action can make negotiations about the debt more challenging.

There have been reported and even unreported cases when debt collection agencies go beyond their boundaries when collecting payment from borrowers. The Fair Debt Collection Practices Act (FDCPA) clearly stipulates the rules of fair debt collection. Thus, if you feel that your debt collector is treating you in an undignified way, you have the right to take action. Listed below are the steps that you can do to fight back against debt collection agencies that cross the line:

Inform your State Attorney General. The laws of debt collection vary, depending on the state where you live. If you have experienced harassment from your debt collector, your next best step is to report this issue or complaint to your State Attorney General's office. An investigation will take place after receiving your complaint and if the debt collection agency is found guilty, they will then be required by the law to pay legal damages and abide by the law's restriction.

Notify the Federal Trade Commission. A complaint should also be file by consumers to the Federal Trade Commission. Although the FTC does not directly take action on each complaint, it gathers all complaints it receives. If there is sufficient proof of violations, the FTC has the power to completely shut down the debt collection agency. In fact, in December 2006, the FTC has shut down one debt collection agency and demanded a $1 million fine.

File a law suit against your debt collector. Borrowers can also take legal action and file a case against an abusive debt collector. If violations are proven in court, the debt collection agency will be demanded to pay damages amounting to as much as $1,000. Attorney fees and other legal cost will be recovered as well. If you plan to file a case, check procedures with the National Association of Consumer Advocates.

Know Your Consumer Rights

Remember that despite your debts, debt collectors must still treat you with respect and dignity. As a borrower, you are entitled to your rights especially with regards to protecting your privacy. As an example, a debt collector cannot contact a third party, may it be a relative, friend or neighbor, and give them details about your debts. Nor can a debt collector publicize your debts in print or any other forms of media. Details of your debts are a confidential matter which should only be kept between you and your debt collector. If your debt collector violates your privacy, you have the right to fight back.

All consumers need to be aware of their legal rights, in this case, with regards to debt collection practices. The FTC has listed the complete stipulations of the Fair Debt Collection Act. Check from the FTC's website and find out if your debt collector is committing violations against you.