It is possible to stop phone calls from collection agencies before filing for bankruptcy. In South Carolina, residents are protected by two sets of overlapping laws that limit what creditors and debt collectors can do.
An experienced bankruptcy attorney can guide you through the process, including how federal and state laws can end nuisance collections calls.
How Harassment Is Defined
Third-party debt collectors are prohibited from using abusive, deceptive, or unfair practices by the federal Fair Debt Collection Practices Act (FDCPA). This can include calls that:
- threaten violence
- are obscene
- are repeated frequently with intent to annoy
- claim you’ve committed a crime
- misrepresent the amount you owe
Under South Carolina law, the state’s Consumer Protection Code bans unconscionable collection conduct from both original creditors and collection agencies, barring behavior like:
- calling at unusual hours (anything outside of 8 a.m. to 9 p.m.)
- causing a phone to ring repeatedly to harass you
- discussing your debt with third parties without permission
- threatening arrest or property seizure they cannot legally carry out
- contacting debtors by postcard
Sending a Written Cease-and-Desist Letter
A written demand is the most direct tool available. A cease-and-desist letter, sent by certified mail, should include your name, the collection agency’s name, and a clear request to stop contacting you about the debt. When received, an agency is required to stop, except to confirm there will be no further contact or to notify you of a specific action such as a lawsuit. These letters do not affect the original creditor.
Remember that silence is not forgiveness. A cease-and-desist letter stops the calls but does nothing to the debt. It’s important to document every contact afterward, including dates, times, and what was communicated, creating a record for further complaints against the collector or in case a lawsuit is filed.
Demanding Verification of the Debt Owed
A collector is required to send a written notice within five days of the first contact, per federal law (FDCPA). This letter must include:
- the amount owed
- the creditor’s name
- how to dispute the debt
If a dispute letter is sent within 30 days, collection activity must pause until the collector mails proof of the debt to you. Debt is often sold and resold, and paperwork can be lost along the way, so verifying the debt may catch inflated balances and accounts that are not yours.
Filing a Complaint is Required Before You Sue Under State Law
Continued harassment may justify legal action but state law requires a preliminary step:
- a written claim must be filed with the SC Department of Consumer Affairs
- wait at least 30 days while the Department attempts to resolve the situation before filing suit over unconscionable collection tactics
During the 30-day review period, a creditor or collector may take only actions authorized by law to protect its collateral. A successful lawsuit may allow the debtor to recover actual damages, attorney’s fees, and a court-determined penalty of $100 to $1,000. Note that this complaint requirement applies only to claims under state law; a lawsuit under the federal FDCPA can be filed without it. Complaints can also be filed with the federal Consumer Financial Protection Bureau and Federal Trade Commission.
Understand Limits to Creditor Collections
People may attempt to pay debts they can’t afford out of fear for their credit score or reputation. State law limits the tactics that creditors and collection agencies can use, such as prohibiting wage garnishment for most consumer debts. That means a collection agency that threatens to garnish your paycheck over a credit card balance is likely breaking the law. (Note that garnishment still applies to some debts such as child support, taxes, and federal student loans.)
Finding the Right Tool for Your Debt Situation
Stopping collector harassment isn’t the same as erasing overwhelming debt; it may simply delay the inevitable. Lam Law Firm’s experienced bankruptcy attorneys can assess your circumstances and recommend a course of action, such as negotiating with creditors or filing an appropriate chapter of bankruptcy, which includes an automatic stay that stops harassing calls. Call for a consultation.
