Did a Debt Collector Publish Your Name on a “Bad Debt” List
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General Rule: No, it is illegal to publicize your debt in any manner. This includes placing your name on a “bad debt” list.
When a collection agency takes over a past-due debt, they are free to contact you. They are also free to contact others for limited purposes such as getting your contact information. However, a debt collector will sometimes choose the harassing tactic of telling others about your debt.
Thankfully, the Fair Debt Collection Practices Act (FDCPA) protects against abusive tactics from debt collectors. The FDCPA ensures that a collection agency collects your debt in a fair and ethical manner. That means avoiding harassing and deceptive tactics to collect on a debt.
So, can a debt collector publicize your debt on a “bad debt” list? In this article, you will learn about this type of violation. In addition, you will learn how you can get your name removed from this list and hold a debt collector accountable.
What is a “Bad Debt” List and Why is it Illegal?
A “bad debt” list includes the names of people who have not paid a debt. If this list is publicly available, it can impact various areas of your life. If a prospective employer searches and finds your name on this type of list they may decline to hire you. Or it may be the deciding factor on whether or not another creditor is willing to work with you.
Why is this illegal? The reason is that, under the FDCPA, it is illegal to communicate your debt to a third party. There are only limited exceptions and none of them allow a debt collector to publish your name on a “bad debt” list. The only exception is the following:
- You gave consent to the debt collector to discuss your debt with someone else
- The court authorizes the communication as the debt collector works to execute on a judgment
- Discussions with your attorney
- Legally reporting your debt to a Consumer Reporting Agency
Note: Certain states have additional exceptions which include your spouse, a guardian or a co-signer. Depending on state law, a collection agency may also contact a person’s parents if they are a minor.
The FDCPA Protects Against Harassment, Including Publicizing Your Debt
The goal of the FDCPA is to prevent all forms of harassing and abusive debt collection practices. The FDCPA considers telling others about your debt to be a form of harassment. Your debt is a private matter and you should be able to keep it that way.
Having a friend or family member know about your debt can be embarrassing. It may also result in more serious consequences if it impacts your employment or your ability to obtain future credit.
Note: Prohibitions against publicizing your debt on a “bad debt” list and other ways only apply to third-party debt collectors. Original creditors may do so without violating the FDCPA.
Action You Can Take To Get Your Name Removed From a Public Debt List
You can get your name removed from being on a public debt list. There are additional actions you can take as well to make sure the debt collector faces consequences for their illegal action. Consider the following options:
- Contact the Debt Collector. Notify the collection agency in writing about the violation and demand they remove your name immediately. Send the letter via certified mail. If they do not remove your name, this letter will serve as evidence when you take further action.
- Report the Debt Collector to a Federal Agency. You can send a general complaint to the Consumer Financial Protection Bureau (CFPB). In addition, report the violation to the Federal Trade Commission (FTC). The FTC enforces the FDCPA.
- Sue the Collection Agency. You can file a lawsuit if the debt collector has not removed your name. This is also an effective option if you seek compensation for any damages suffered.
- Request a Debt Settlement. If you have proof and a larger debt, this may be a good option. A collection agency may agree to settle your debt at a discount to avoid legal issues.
If the debt is not yours, there is additional action you should take. Make sure you dispute the debt in writing and keep a copy for your records.
Conclusion
While you have a responsibility to pay your debt, a collection agency must act in a professional manner. It is embarrassing and abusive to publish information to others about your debt.
If a debt collector is using this illegal tactic, contact a consumer rights attorney. They can help you take action to hold the debt collector accountable for this abusive and illegal behavior.
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