Debt collection harassment suits are increasing. A Texas man has been awarded $1.5 million after being harassed by debt collectors. There have been other suits in other states.

The Fair Debt Collection Practices Act prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from individuals. It typically does not apply to business loans.

With the worsening economy it is likely that more cases like this will occur.
Under the Fair Debt Collection Practices Act, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them from you. The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, consumer debts, a medical bill, and your mortgage. It does not cover business debts.

The Fair Debt Collection Practices Act doesn’t cover debts you incurred to run a business. In the Texas case, the debt collectors left abusive voice mail messages.

Here are some web sites on the Act:

www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

http://www.fair-debt-collection.com/

Some companies including Legal Helpers have started practicing in the area of Fair Debt Collection. Their firm includes debt settlement and bankruptcy. Here is a link to their web site:

http://www.legalhelpers.com/bankruptcy-alternatives/debt-management.html

With the economy getting worse and job creation at minimum, it is likely that these types of suits will increase. If you have been harassed by debt collector would like to resolve your debt, then it is good idea to consult an attorney.