FTC: You have rights when debt collectors harrass you for debts you don't have

PHOENIX - You may want to learn your rights when approached by an aggressive debt collector and why they seem to be getting away with it.

They call you late at night. They may come to your door. They threaten you with jail time. And they do it to collect a debt you may not even owe.

The ABC15 Investigators examine complaints about aggressive debt collectors and your rights.

VALLEY VICTIM TELLS HER STORY

Debbie Brooks of Laveen says she has been harassed for two years.

She says she has been called a "cheat" and that she was "welching" on a debt she owed.

But Debbie says she doesn't owe the debt.

Unfortunately, Debbie has the same name as someone who allegedly does owe thousands of dollars to banks.

She says debt collectors call her day and night, even though she spells her name with an "ie", not an "i" as the other Debbi does.

She also has a different middle name, different address, phone number, social security number and so on.

Debbie tells us, "It's a nightmare. It totally disrupts my life."

FTC: THOUSANDS COMPLAIN ABOUT COLLECTORS

Debt collection practices is the Federal Trade Commission's No. 1 complaint area.

Their website shows they had 140,000 complaints in 2010 alone.

But the Investigators found many aggressive debt collectors seem to be getting away with it.

The FTC records show since 1998, they took 21 actions involving debt collection practices.

COLLECTORS: BAD APPLES DON'T MAKE UP MAJORITY

Brad Klein questions those numbers.

He's with the Arizona Collectors Association which is made up of debt collectors.

He believes the FTC doesn't distinguish between complaints and inquiries, though the FTC site says it does.

Klein says there are some bad apples in his industry, as there are in any other.

But he says by far, the majority of debt collectors try to obey the rules.

And his organization has a code of ethics collectors must follow.

Ask debt collection questions anonymously at a collection industry site .

Klein also says if you get a call from a debt collector, don't ignore it.

He says that legitimate collectors can investigate if a person doesn't owe a debt.

And that takes communication between the person and the collector.

LAWS THAT PROTECT YOU

Under the Fair Debt Collection Practices Act, you have many rights.

Debt collectors cannot...
- say they are a lawyer if they are not.
- say you'll go to jail, because there are no debtor's prisons.
- threaten you or use obscenities.
- call you before 8 a.m. or after 9 p.m.
- contact you once you tell them to stop.

Debt collectors can call you once more to tell you they are suing you.

If you don't owe the debt, also follow-up by sending a certified letter to the debt collection agency.

Make sure to tell them which debt and an account number you need to get from the collector.

Learn your rights if contacted by a debt collector.

Unfortunately it's been Debbie's experience, when one collector goes away, another group of people try to collect.

You can sue debt collectors who break the law for up to $1,000 even if you can't prove suffering.

Businesses can also sue you to recover legitimate debts.