The FDCPA prohibits debt collectors from threatening “to take any action that cannot be taken or that is not intended to be taken” under section 807(5) – also known as 15 U.S.C Section 1692e(5). According to the Federal Trade Commission Annual Report 2008: Fair Debt Collection Practices Act, the FTC “obtained the largest amount of civil penalties ever...” when LTD Financial Services, L.P. agreed to pay $1.375 million for violation of the FDCPA section 5! Many other examples are listed in this document.
So the next time a collection agency threatens to file suit, garnish, imprison, credit-whack or anything else, you can say “if you are actually planning on doing this then do it, it is illegal for you to threaten me unless you intend to take action. If I do not receive notice of suit, garnishment, etc. in the next 30 days I will be reporting this incident to the Federal Trade Commission (FTC) for your gross violation of section 807(5) of the FDCPA….” 877-FTC-HELP
Please comment on this idea and let me know your thoughts. Is this good info? Could it bite me in the butt? Has anyone ever done this?
