Collection calls can become distressing when someone uses threats, constant contact or other pressure to get you to pay. You might know the treatment seems wrong without knowing if the company crossed a legal line.
Federal collection rules limit how covered companies may deal with you. Minnesota law gives you added rights. Some violations could also give you grounds to seek damages in court.
1. Using calls or messages to pressure you
Collection companies cannot use repeated contact to intimidate or wear you down. A large number of calls in a short time may support a claim when the contact seems aimed at putting unfair pressure on you.
2. Making false threats
A collector cannot falsely claim that you face arrest for failing to pay. Federal law also bars threats of legal action that the company cannot take or does not plan to pursue.
3. Telling others about what you owe
Federal law limits what collection companies may tell other people about your account. They may seek basic details to locate you, but they usually cannot reveal that you owe a debt.
4. Adding charges you do not owe
Minnesota law bars covered collectors from seeking interest, fees or other charges unless your agreement or the law permits them. An unexplained increase in your balance might warrant a closer review of your statements.
5. Suing after the time limit runs out
Minnesota bars covered collection companies from filing suit after the applicable time limit expires. Federal rules also prohibit covered collectors from suing or threatening to sue over time-barred debt.
How do you sue over illegal collection conduct?
You can bring a civil claim when covered collection conduct violates federal law. Records such as letters, messages and call logs may help show what took place. You might want to keep those records together if you believe the company crossed the line.
Federal law lets you seek actual and additional damages. A court may award up to $1,000 in additional damages, and a successful claim could also include court costs and legal fees. Federal claims under this law generally have a one-year filing period.
What can you do next?
You may want to compare what happened with the rules that apply to your account and the company contacting you. Reviewing possible unfair collection conduct could help you see which facts matter. Since filing periods apply, the date of the conduct may also affect your options.