Wisconsin Debt Collector Harassment Lawyer
Are You Being Abused by Debt Collection Practices? Do You Feel Harassed by Debt Collectors? I Can Help!
Creditor Harassment in Wisconsin
When you fall behind on payments, your account might get sent to the collection department or a debt collection agency. Those have been contacted by debt collectors know the harassment that can follow. This is worse if the debt is not even yours and you have been a victim of identity theft.
But there are ways to stop creditor harassment in such scenarios. Reach out to Lein Law Offices to find out more. Our experienced attorneys have successfully represented many clients who were unlawfully harassed by creditors. Call us now at (715) 634-4273 or fill out the form for a free consultation.
What Can Be Considered Creditor Harassment?
Owing a debt is one thing; being the victim of creditor abuse is another. You not only have rights in Wisconsin according to Wis. Stat. § 427, which regulates debt collection practices and protects consumers from harassing and abusive behavior, but Federal law as well, according to the Fair Debt Collections Practices Act (FDCPA) which prohibits collectors from using deceptive, unfair, and abusive practices.
This can Include the following:
- Threats of Violence
- Unfair Practices
- False Statements
- Threatening Criminal Prosecution
- Lie About Your Debt
- Calling You at Your Job
- Abusive Language
- Debt Disputes
- Communications with Debtor
- Contacting You Several Times a Day
- Falsifying the Amount You Owe
- Threaten You With Arrest
- Misrepresenting Themselves as Attorneys
- Publicly Shame You
- Act as Though They Have Legal Powers
- Repetitious Phone Calls
- Wage Garnishment
- Advertise Your Debt for Sale
- Advertise Your Debt for Sale
Identity Theft and Debt Collection
In the event that your identity has been stolen and debt taken under your name, you would want the debt collector to prove the debt is yours. The Wisconsin Consumer Act allows you to recover actual damages, including emotional distress, if a collector violates the law in trying to collect the debt from you.
Federal laws, specifically the Fair Debt Collection Practices Act (FDCPA), set strict guidelines to prevent creditor harassment. The main federal law addressing identity theft is the Identity Theft and Assumption Deterrence Act of 1998. This act makes it a crime to knowingly transfer or use someone else’s identification without authorization, particularly to facilitate illegal activities that violate federal law or are considered felonies under state or local laws. Violators can face penalties including up to 15 years in prison, fines, and the loss of any assets gained through the crime. [1]
If someone is working as a debt collector for a collection agency and discovers that the debt info might be fake or from identity theft, they have to do two things.
1. They need to tell the company they are collecting for that the debt info could be fake or from identity theft.
2. If the person who supposedly owes the debt asks for it, they must give that person all the info they would get if they weren’t a victim of identity theft but wanted to argue about the debt according to the law. This is stated in § 615 – 15 U.S.C. § 1681m. [2]
Using someone’s personal identifying information or documents without their consent is considered identity theft, a Class H felony in Wisconsin. Penalties can include up to six years in prison, a fine of up to $10,000, or both. [3]
Unacceptable Behavior of Debt Collectors
The Consumer Financial Protection Bureau (CFPB) received approximately 109,900 debt collection complaints in 2023. [2] Debt collectors, often lawyers or agencies, work to collect past-due debts. They sometimes buy the debt to collect it for profit.
Collectors must follow government guidelines outlined in the Fair Debt Collection Practices Act (FDCPA), which includes rules on communication, harassment, false threats, misleading representations, unfair practices, and collections on multiple debts. Debt collectors are not above the law and can be sued for violating FDCPA guidelines. [4]
Wisconsin Statute 427 explains how debt collectors should interact with those owing money. Wis. Stat. § 427 is about the collection of debts from things people buy. Most purchases that cost $25,000 or less fall under this law. If someone collects a debt and breaks this law, you might be eligible to receive money for damages.
The prohibited actions are:
- Using or threatening force or violence to harm the customer, their family, or their property
- Threatening criminal charges
- Before a final judgment, the creditor cannot contact the debtor's employer to verify employment or earnings, or if the employer has a debt counseling service
- Discussing information that could harm the customer's reputation with anyone other than the customer or their spouse
- Omitting the mention that there is a disputed debt
- Not limiting communication to reasonable frequencies and hours to avoid harassment
- Using disrespectful and threatening language when communicating with the customer or their family
- Taking action against the customer without intent to follow through
- Ignoring harassment protection laws [5]
Unbelievable Debt Collection Mistakes
As a Wisconsin consumer protection Lawyer, I have seen a lot of mistakes made by debt collection agencies that are against the law.
This includes:
Identity Theft: We’ve had clients that have had their identities stolen and then a creditor uses hardball tactics to try and recover the debt, not believing the consumers claim even when legally documented by the police. We had one such case recently, sued the creditor and won.
Being Sued Over Someone Else’s’ Debt: Not only does identity theft happen, but “mistaken” identity happens to. A “mistaken identity debt collection” occurs when a debt collector attempts to recover funds from someone incorrectly identified as the actual debtor. This confusion usually stems from errors in the creditor’s records. If you encounter this issue, it is crucial to swiftly challenge the debt and provide supporting documentation that proves you are not the person being sought.
Debt Collection in Wisconsin
According to a 2020 study by the Association of Credit and Collection Professionals, in Wisconsin, the total debt collected was $1,091,735,273. [6] This staggering amount shows how lucrative this industry is and why it might urge debt collectors to succumb to harassing the debtors.
Have Your Rights Been Violated by a Creditor? Contact Lein Law Offices
Credit harassment and debt collection abuses are a serious matter. If you believe that you have had your consumer rights violated on the state level, the federal level or both contact Lein Law Offices for information about your personal injury in Wisconsin by calling toll-free at 1-800-944-3949 or at (715) 634-4273
Frequently Asked Questions
What is creditor harassment?
Creditor harassment refers to the use of aggressive, abusive, or unfair tactics by debt collectors to collect a debt. Examples include frequent calls, threats, false claims, and other intimidating behaviors.
What should I do if I am being harassed by a debt collector in Wisconsin?
If you’re facing harassment, document all communications—note the dates, times, and content of interactions. Report the harassment to the Consumer Financial Protection Bureau (CFPB) and seek legal help from an experienced attorney, like those at Lein Law Offices.
What laws protect me from creditor harassment in Wisconsin?
The Wisconsin Consumer Act and the Fair Debt Collection Practices Act (FDCPA) offer protections against creditor harassment. These laws set rules for debt collector behavior and prohibit abusive practices.
Can I sue a debt collector for harassment?
Yes, you can sue a debt collector under the FDCPA and Wisconsin Statute 427 for harassment. Violations may entitle you to actual damages, statutory damages, and attorney’s fees.
What are some examples of prohibited actions by debt collectors under Wisconsin law?
Prohibited actions include using threats or violence, threatening criminal charges, contacting your employer before a final judgment, sharing harmful information, not mentioning a disputed debt, contacting you at unreasonable hours, using disrespectful language, and taking actions without intent to follow through.
What should I do if I am a victim of identity theft and a debt collector contacts me?
Inform the debt collector that the debt is not yours and request proof. Under federal law, specifically § 615 – 15 U.S.C. § 1681m, they must investigate and provide information if you dispute the debt. Seek help from an attorney to navigate this process and recover any damages.
What penalties do debt collectors face for violating the FDCPA?
Debt collectors can face fines and liability for actual and statutory damages for violating the FDCPA. Severe cases may also lead to legal action from the debtor.
How can I prove that a debt collector has violated the law?
Keep detailed records of all communications, including voicemails, emails, and written correspondence. Document any instances of abusive or harassing behavior, which can be crucial evidence if you take legal action.
How can I prove that a debt collector has violated the law?
Keep detailed records of all communications, including voicemails, emails, and written correspondence. Document any instances of abusive or harassing behavior, which can be crucial evidence if you take legal action.
Can a debt collector contact my employer or family members about my debt?
No, Wisconsin law prohibits debt collectors from contacting your employer to verify employment or earnings before a final judgment. They also cannot share information that could harm your reputation with anyone other than you or your spouse.
How can Lein Law Offices help me with creditor harassment?
Lein Law Offices has experienced attorneys who can provide legal advice, help you understand your rights, and represent you in legal actions against debt collectors.
What is the Identity Theft and Assumption Deterrence Act of 1998?
This federal law criminalizes using someone else’s identification without authorization. Violators face severe penalties, including up to 15 years in prison, fines, and forfeiture of assets gained through the crime.
Sources
[1] Federal Trade Commission. (n.d.). Identity Theft and Assumption Deterrence Act. https://www.ftc.gov/legal-library/browse/rules/identity-theft-assumption-deterrence-act-text
[2] Fair Credit Reporting Act. (2023). In Federal Trade Commission. Federal Trade Commission. Retrieved July 11, 2024, from https://www.ftc.gov/system/files/ftc_gov/pdf/fcra-may2023-508.pdf
[3] 2020 State of the Industry Report. (2020). In The Association of Credit and Collection Professionals. The Association of Credit and Collection Professionals. https://policymakers.acainternational.org/wp-content/uploads/2020/09/KG-combined.pdf
[4] Consumer Response Annual Report. (2023). In CONSUMER FINANCIAL PROTECTION BUREAU. CONSUMER FINANCIAL PROTECTION BUREAU. Retrieved July 11, 2024, from https://files.consumerfinance.gov/f/documents/cfpb_cr-annual-report_2023-03.pdf
[5] State of Wisconsin Department of Justice. (n.d.). Identity Theft. https://www.doj.state.wi.us/dci/consumer-protection/identity-theft
[6] Wisconsin Department of Financial Institutions. (n.d.). DFI Wisconsin Consumer Act: Debt Collection General Practices. https://dfi.wi.gov/Pages/ConsumerServices/WisconsinConsumerAct/DebtCollectionGeneralPractices.aspx