predatory debt collection
Aggressive, deceptive, or illegal debt collection tactics designed to intimidate debtors.
Example
“Predatory debt collection included threatening arrest and contacting her employer illegally.”
Memory Tip
PREDATORY COLLECTION — illegal tactics. Know your FDCPA rights and report violations.
Why It Matters
Understanding predatory debt collection matters because it helps you recognize when collectors are breaking the law and violating your rights as a debtor. Knowing the difference between legitimate collection efforts and illegal tactics empowers you to protect yourself financially and take legal action if needed.
Common Misconception
Many people believe that debt collectors can do almost anything to collect money, including calling repeatedly at odd hours or threatening legal action they cannot take. In reality, debt collectors are bound by strict laws like the Fair Debt Collection Practices Act that prohibit harassment, false statements, and other abusive behaviors.
In Practice
A collector calls a debtor 15 times per day, threatens to have them arrested for owing $500, and contacts their employer claiming the debt is criminal in nature when it is actually a credit card balance. These actions violate federal law because they constitute harassment and deception, and the debtor could sue the collection agency for damages of up to $1,000 plus attorney fees.
Etymology
From Latin 'praedatorius' meaning plundering — collecting through predatory tactics.
Common Misspellings
Compare debt consolidation options
Related Terms
More in debt
Other debt terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.