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Stop All Creditor Harassment
If you are already dealing with heavy financial stress, creditor harassment on top of it can make it all the more frustrating and overwhelming. As a resident of Washington State, you’re protected by both state and federal laws when it comes to aggressive creditor tactics.
Whether it’s constant phone calls, threatening letters, or looming lawsuits, there are several legal avenues you can take to stop creditor harassment. A bankruptcy attorney in Olympia can be your biggest ally in this process.
What Is Creditor Harassment in Olympia?Creditor harassment is when your creditors choose to use illegal methods to pressure you into paying your debt. Some of the more common tactics you might encounter include:
- Repeated phone calls, especially outside of legal hours
- Threats of violence or legal actions like lawsuits
- Contacting your family members, friends, or co-workers to discuss your debt
- Using abusive language or deceptive practices
Washington State law works collectively with federal regulations to ensure that creditors can’t use these underhanded tactics against you.
Washington State and Federal ProtectionsWashington State LawIn Washington, the Collection Agency Act (RCW 19.16) ensures that debt collectors act fairly when trying to collect a debt from you. Under this law:
- Debt collectors cannot contact you at unreasonable hours, generally before 8 AM or after 9 PM.
- They must cease communication if you request in writing that they stop.
- If a creditor violates these provisions, they can face penalties, including a lawsuit for damages.
Washington also has specific protections under the Washington Consumer Protection Act (RCW 19.86), which prohibits deceptive and unfair business practices, including those related to debt collection. If a creditor violates the rules of this law, you may have grounds to file a claim for damages.
Additionally, RCW 19.16.450 provides that debt collectors must follow specific rules for contacting you. Failure to do so can result in penalties.
Federal Law – Fair Debt Collection Practices Act (FDCPA)The FDCPA is a federal law that provides you with even more protection against creditor harassment. It states that debt collectors cannot:
- Call repeatedly or continuously to harass you
- Use obscene language or threats of violence
- Misrepresent the amount you owe or the legal consequences of not paying
- Contact third parties about your debt without permission
Your Olympia attorney can best explain these laws to you and show you how you may have legal grounds to stop creditor harassment from happening once and for all.
How Bankruptcy Can Help Stop Creditor HarassmentBankruptcy is a powerful tool you can use to stop credit harassment. When you file for bankruptcy, it initiates an automatic stay, a legal order that stops all collection activities, including phone calls, lawsuits, and wage garnishments.
The automatic stay is enforced in both Chapter 7 and Chapter 13 bankruptcy cases.
- Chapter 7 Bankruptcy: If you qualify for Chapter 7 bankruptcy, most of your unsecured debts (like credit card debt and medical bills) can be discharged. This immediately stops creditors from contacting you.
- Chapter 13 Bankruptcy: While Chapter 13 doesn’t discharge all of your debts outright, it does let you consolidate them into a manageable repayment plan that you can pay over time (usually three to five years). The automatic stay protects you from creditor harassment during this period.
You don’t have to wait to file for bankruptcy before you start acting against creditor harassment. Here are some steps you can take:
- Get to Know Your Rights: You want to familiarize yourself with all state and federal laws, so you know exactly what your creditors can and cannot do.
- Send a Cease and Desist Letter: Under the FDCPA, you can send a written request to your creditors asking them to stop all communication. Your creditors are then legally required to stop contacting you.
- Contact a Bankruptcy Attorney: Your bankruptcy attorney in Olympia can help you navigate what can be a complicated legal process. They can assist you in filing for bankruptcy and ensure all of your rights are protected.
Can Creditors Contact You If You Are Represented by an Attorney?
No. Once you hire an attorney in Olympia, all of your communication with the creditors should go through them. Creditors can’t contact you directly once they are aware you have legal representation.
What Should You Do If You Receive a Call From a Creditor After Requesting They Stop?
If your creditors continue to contact you after you have already sent your written request to cease all contact, it is then a violation of the FDCPA. You can report it to the CFPB or the Washington Attorney General or file a lawsuit against the creditor for damages.
Can Creditor Harassment Affect Your Credit Score?
Creditor harassment doesn’t directly affect your credit score, but continued harassment can lead to missed payments, lawsuits, or collections, which all negatively impact your credit.
Can You Ignore Creditor Harassment?
If you ignore creditor harassment, it can lead to more severe consequences, such as lawsuits, wage garnishments, and other collection actions. So, you want to act as soon as possible. Try negotiating with your creditors or seeking legal protection to help prevent any escalation.
How Your Olympia Bankruptcy Attorney Can Help With Creditor Harassment
Your bankruptcy attorney can file your bankruptcy petition, which immediately activates the automatic stay. With our years of experience in Thurston County and beyond, we can negotiate with creditors on your behalf to try to find a solution or settlement. We will also advise you on your legal rights and protections under both state and federal law.
So, if you experience creditor harassment in Olympia, Washington, remember you don’t have to tackle it alone. Consult a qualified bankruptcy attorney to explore your options for ending creditor harassment once and for all.
