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Creditor Harassment In Iowa
Repeated collection calls can affect your work and make it hard to answer your own phone. Bankruptcy can stop most collection activity and address the debts behind the calls.
Debt collectors have limits on when and how they can contact you. Filing bankruptcy triggers the automatic stay, which halts most collection activity.
Key Takeaways
- The automatic stay covers calls, letters and many lawsuits, and it applies to the original lender as well as any collection agency
- Chapter 7 can clear many common unsecured debts such as credit cards and medical bills
- Collectors cannot call before 8 a.m. or after 9 p.m. in your time zone
- A collector must stop calling your workplace after learning that your employer prohibits personal calls
- Federal collection rules usually apply to collection agencies rather than the original lender
Where Bankruptcy Is Different
Filing bankruptcy triggers the automatic stay, a federal protection. It halts most collection activity. It applies to collection agencies and original lenders. It can stop wage garnishment, where money is taken from your paycheck for a debt.
Chapter 7 can discharge many unsecured debts, meaning debts not tied to property, such as credit cards and medical bills. A discharge is the court order ending your responsibility to pay covered debts. After that order is entered, a collector cannot keep seeking payment from you for those debts.
Chapter 13 uses a court-approved repayment plan lasting three to five years. It can help you catch up on missed house or car payments. The amount owed does not set the monthly payment, which is based on income left after allowed expenses. In most cases, a large percentage of eligible debt is wiped out after successful completion of the plan.
We handle bankruptcy, but not standalone collection defense, debt settlement, suits against collectors or credit repair.
What Collectors Are Already Forbidden From Doing
The Fair Debt Collection Practices Act sets federal rules for third-party debt collectors. The Consumer Financial Protection Bureau enforces these rules. They limit when collectors can call and what they can say.
A collector generally may not:
- Call before 8 a.m. or after 9 p.m. in your time zone
- Contact you at work after learning that your employer prohibits personal calls
- Make repeated or continuous calls intended to annoy, abuse or harass you
- Tell your family, neighbors or coworkers about the debt
- Use threats, obscene language or false statements about what will happen
- Continue a call after learning that the time is inconvenient
You can tell the collector that it is a bad time to talk. Once the collector knows the time is inconvenient, the call should end. You can also state when contact would be convenient.
Why The Calls Continue After You Tell Them To Stop
Federal collection rules mainly cover outside agencies collecting for someone else. They can also cover some companies that purchased an account after it went unpaid. The original lender collecting its own account is usually not covered by the same federal rules. That difference can explain why some calls continue after you object.
Calls may also continue after a creditor or debt buyer files a lawsuit. Many Iowa debt lawsuits require a response within 20 days after service, but the deadline in your court papers controls. Read about being sued over a debt in Iowa and lawsuits filed by debt buyers.
The Calls To Your Workplace
Collection calls at work can be embarrassing and may cause problems with your employer. A collector cannot contact you there after learning that your employer prohibits personal calls. You can tell the collector about that rule. Your employer can also provide that information.
Make a note of the date, time and person you spoke with. Keep any voicemail, letter or email that follows. A clear record can support a complaint if the workplace calls continue.
What You Can Do About Collection Calls
There are a few steps you can take when a collector is contacting you improperly. These steps may help when an outside collection agency is calling at prohibited times or contacting you at work. They do not resolve the debt itself.
- Tell the collector when a call is inconvenient or that your employer prohibits personal calls
- Send written notice asking the collector to stop contacting you. After receiving it, the collector may contact you only about certain limited matters
- Dispute the debt in writing within the period stated in the validation notice. Collection must pause until the collector provides verification
- Keep a record of the dates, times, phone numbers and names connected with each call
- Submit a complaint to the Iowa Attorney General’s consumer protection division
These steps can help stop improper calls or create a record of them. They do not prevent every lawful collection action. Bankruptcy can deal with several debts in one filing, instead of one caller at a time.
Talking It Through
You do not need to know whether bankruptcy is right before you call. That is part of what the free consultation is for. We can review the types of debt you have and explain how Chapter 7 or Chapter 13 works. We can also help you understand the collection papers you received.
Federal law bars debt collectors from harassing, oppressing or abusing people under 15 U.S.C. 1692d. That includes repeated calls intended to annoy or abuse you.
You can meet Shane Zisman to learn more about our firm. Submit the form and choose a time on the calendar. You can also call Zisman Law at 641-472-5141 or request a free consultation.
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What Our Clients Say
Past results do not guarantee a similar outcome. Each case is unique.
Frequently Asked Questions
When Can A Debt Collector Call Me?
A debt collector can generally call between 8 a.m. and 9 p.m. in your time zone. Calls outside those hours are prohibited unless you agreed to them. A collector generally cannot continue the call after learning that the time is inconvenient.
Can A Debt Collector Call Me At Work?
Not after the collector knows that your employer prohibits personal calls. You or your employer can provide that information. Keep a record if the workplace calls continue.
Can A Collector Contact My Family Or Employer?
A collector may contact another person to ask for your location or contact information. The collector generally cannot reveal that you owe a debt or discuss the account with your family, employer, neighbors or coworkers.
How Many Collection Calls Count As Harassment?
No single number decides every case. The law looks at the number, timing and pattern of the calls, including whether they were intended to annoy, abuse or harass you. A written call log can document that pattern.
Can I Require A Collector To Stop Calling Me?
Yes, you can send a written notice telling a third-party collector to stop contacting you. After receiving it, the collector may contact you only about certain limited matters. The debt remains, and the collector may still use other lawful collection methods.
Do Federal Collection Rules Apply To The Original Lender?
Usually not in the same way. The federal rules mainly apply to outside collection agencies and certain debt buyers. An original lender collecting its own account often falls outside those rules.
Will Filing Bankruptcy Stop Collection Calls?
Filing triggers the automatic stay, which halts most collection contact after the case is filed. It applies to original lenders and collection agencies.
What Happens If A Collector Contacts Me After A Debt Is Discharged?
A collector may violate your discharge by trying to collect a debt covered by that court order. Keep any voicemail, letter or email and talk with us about what happened.
