Has a debt collector threatened you with arrest, wage garnishment, or a lawsuit? In the United States it is unlawful for a debt collector, while collecting a consumer debt, to threaten to take any action which it does not intend to take or cannot legally take. For example, you generally cannot be arrested, prosecuted, or imprisoned simply because you refuse or are unable to pay a consumer debt. Any statement from a debt collector that you are facing or will face arrest, criminal charges, or jail is illegal. Unfortunately, this is a tactic sometimes used by the worst debt collectors.Similarly, depending on your state and the type of debt, a debt collector or creditor may not have the legal ability to ever garnish your wages although they often falsely threaten to do just that. For instance, in Pennsylvania, wage garnishment is generally only available for child support, some student loans, rent, and some lease agreements. It is not an option for other types of debt including car loans, mortgages, credit cards, personal loans, and most other consumer debts. Other states differ. If you are threatened with wage garnishment, you should determine the law of your state or consult your local consumer rights attorney.
Also keep in mind that it is far too common for debt collectors to pretend that they are calling from a law firm or are affiliated with an attorney. Lawsuits and legal action are often threatened even though the debt collector doesn’t intend to sue. If you receive a letter or phone call from an attorney; you should consult an attorney of your own. If the debt being collected is small the chances are that nobody really wants to take the time, trouble, and expense to sue you but they want you to believe that they will so that you open your wallet. Watch out for fake attorneys or attorneys that are not licensed and thus unable to file suit against you in your state.