January's Top Ethics Complaint: Harassment

Published: Friday, February 16, 2007

The top ethics complaint received by ACA's Ethics Department in January concerned allegations that debt collectors harassed or verbally abused consumers.

The Fair Debt Collection Practices Act (FDCPA) prohibits a collector from engaging in any harassing or abusive practices in connection with the collection of a debt. Any conduct the least sophisticated (or unsophisticated) consumer interprets to be harassing or abusive may violate the FDCPA.

The Federal Trade Commission staff has stated that a collector's use of "religious slurs, profanity, obscenity, calling the consumer a liar or a deadbeat, and the use of racial or sexual epithets" is abusive. Whether a collector intends to abuse a consumer by using such language is irrelevant. Regardless of the debt collector's intention, if the natural consequence of using such language in connection with the collection of a consumer debt results in abuse to the consumer, a violation occurs.

Moreover, all ACA members are bound by ACA's Code of Ethics and Professional Responsibility, which prohibits professional misconduct. Violations of ACA's Code of Ethics may result in sanctions, including expulsion of the offending agency from ACA membership. Thus, it is vital that collection agencies' employees understand what constitutes harassing and abusive behavior and, at all times, maintain professionalism.

This article is provided by ACA International's Legal and Government Affairs Department.