Workplace Debt: Protection Boost

Workplace debt harassment is a serious issue affecting many individuals facing financial difficulties. Unscrupulous debt collectors may resort to aggressive and illegal tactics, such as contacting individuals at their place of employment, potentially jeopardizing their jobs and creating undue pressure to pay debts, even if those debts are not legitimately owed.

The Consumer Financial Protection Bureau (CFPB) is actively combating companies engaging in harassment, including unlawful contact with employers. Previous actions include securing millions in relief from debt collectors who illegally contacted military officers and imposing penalties on companies for contacting consumers at work against their wishes and disclosing debt information to employers. The CFPB is committed to protecting consumers from unfair debt collection practices.

Protecting You from Workplace Debt Harassment

Recent CFPB examinations have revealed instances of companies unfairly contacting references and employers after being asked to stop, or including abusive language in loan applications implying consent to illegal workplace calls. Federal and state law enforcement are urged to investigate companies that use workplace contact to coerce debt payments.

The CFPB also raises concerns about an outdated FDCPA provision allowing debt collectors to contact third parties for “location information,” including “place of employment.” The CFPB advocates for the repeal of this provision, as it can be interpreted to allow employer contact, even when unnecessary due to widespread cell phone use. Often, these calls are intended to embarrass or pressure individuals into paying.

Here are several steps you can take to protect yourself from unwanted debt collection at work:

Tell them to stop contacting you at work: The FDCPA and similar provisions prohibit debt collectors from communicating with you at your workplace if they know or have reason to know that your employer prohibits such communications. Collectors are also prohibited from contacting you at a place they know or should know is inconvenient for you.
Demand that they stop contacting you completely: The FDCPA and similar provisions prohibit debt collectors from communicating or attempting to communicate with you if you notify them in writing that you want those communications to cease or that you refuse to pay the debt. The CFPB provides template letters that you can use to make such a request.
Submit a complaint with the CFPB: If you have had a problem with a consumer financial product or service, including improper workplace debt harassment, you can submit a complaint with the CFPB.

The CFPB’s efforts include protecting consumers from unfair contract terms and initiatives to protect people in the workplace, such as curbing unchecked worker surveillance and addressing employer-driven debt. The CFPB has also taken action against vocational schools making false claims about hiring rates and clarified the application of the Equal Credit Opportunity Act to franchisees seeking credit. You can protect yourself from workplace debt harassment by knowing your rights.

“Debt collectors are prohibited from contacting you at your place of employment if they know or have reason to know that your employer prohibits such communications.”

CFPB Actions Against Unlawful Debt Collection

The CFPB is committed to fighting against workplace debt harassment and other abusive practices. They are actively working to ensure that consumers are protected from illegal debt collection tactics. The agency is also focused on educating consumers about their rights and providing resources to help them navigate the debt collection process. If you believe you are experiencing workplace debt harassment, it is important to take action and report the issue to the CFPB. Remember, you have the right to be free from harassment and intimidation, especially at your place of employment. The CFPB is here to help you protect those rights and prevent workplace debt harassment.