Cops are free to lie to suspects. Debt collectors, not so much.
And creditors, like, say, American Express, also have some constraints on their collection efforts.
DON’T BELIEVE THE ENEMY. If the cops are interrogating you, they are NOT on your side.
Your credit card company is not your friend. They are not your advocate.
Debt collectors are in it for the money. Not your health and well-being.
Creditors are exempt from the Fair Debt Collection Practices Act, though they may be subject to state law provisions where you live.
Not in Michigan, however, where I live.
But there are several federal agencies out there, and they have nailed Discover, and now, American Express, lied to their customers to get their money.
The agencies said American Express violated federal laws prohibiting deceptive practices by using false statements to get customers to settle old debts. The regulators say that included falsely telling customers that if they agreed to settlements to partially pay off their debts, the remaining balance would be forgiven.
The government found that American Express lied from the get go, even in its credit card solicitations.
Racking up $112.5 million in fines, that must have been a pile of wrongdoing.
No word on where this money goes; check with the Federal Reserve or Consumer Protection Financial Bureau if you think you should get a piece of the pie.
If you are being threatened or lied to, or have questions about what you are being told, contact a consumer attorney.
Debt collectors have more stringent rules than the creditors. There is less they can do.
As I say to my clients, they do not care if you were hit by a car and are a paraplegic; they want your last fifty bucks.