Understanding the Rights and Limitations of Creditors


Generally, the law permits creditors and debt collectors in Mississippi and throughout the United States to contact debtors reasonably and ethically in an attempt to recover unpaid debts. However, there are certain limitations to what the creditor can do or how they're allowed to interact with debtors. If you're exploring your options for financial relief, you need to speak with a seasoned Mississippi creditor harassment attorney to know the rights and limitations of creditors. 

At The Law Offices of Wes Stover, we have the diligence and expertise to advise and guide clients in bankruptcy and financial relief-related matters. Our dedicated lawyer can fully explain what creditors are prohibited or permitted to do when pursuing debts and explore your available legal options to seek debt relief. We're proud to serve clients across Jackson, Laurel, Hattiesburg, and all of Central and South Mississippi, including the following counties: Hinds, Rankin, Madison, Jones, Forrest, Warren, Yazoo, Smith, Copiah, Simpson, Wayne, Jeff Davis, Lauderdale, Perry, Greene, Marion, Lamar, Covington, Lawrence, Lincoln, Pike, and the entire Gulf Coast. 

Consumer Rights Laws 

Furthermore, state and federal consumer rights statutes are often enacted to protect consumers from unethical business practices, fraud, and defective products and services. Here are some consumer rights laws you need to know: 

Fair Credit Reporting Act (FCRA) 

The Federal Fair Credit Reporting Act (FCRA) is a federal law that was established to help ensure accuracy and fairness, as well as to ensure that consumer information collected by reporting agencies—such as credit bureaus—is kept private. In addition, the FCRA will help regulate the different methods which credit reporting agencies use to gather, access, share, or use consumer information that is available in their financial or credit reports. 

Fair Debt Collection Practices Act (FDCPA) 

The Federal Fair Debt Collection Practices Act (FDCPA) prohibits creditors, third-party collection agencies, and debt collectors from recovering outstanding debts from debtors through unfair, unconscionable, harassing, abusive, false techniques, or misleading representation. 

Mississippi Law 

Under Mississippi Law, any unfair method of competition that affects commerce, and deceptive or unfair trade practices that affect commerce are prohibited. Some unfair methods of competition and deceptive trade practices that are prohibited in the state include: 

  • passing off goods or services as those of another; 

  • misrepresenting the source, approval, sponsorship, or certification of goods or services

  • misrepresenting affiliation, connection, or association with or certification by another; 

  • misrepresenting designations of geographic origin in connection with goods or services

  • advertising goods or services with the intent not to sell them as advertised; 

  • representing that goods are original or new if they are reconditioned, reclaimed, used, or secondhand; 

  • representing that goods or services are of a particular grade, quality, style, model, or standard while they are of another; 

  • disparaging another business, goods, or services using a false or misleading representation of fact; 

  • advertising goods or services with intent not to supply reasonably expectable public demand; and, 

  • misrepresentations of fact concerning price reductions. 

A seasoned consumer protection attorney can enlighten you about actions that creditors must avoid and help protect your rights. 

Actions That Must Be Avoided When Collecting Debt 

According to the FDCPA and applicable Mississippi state laws, creditors and debt collectors are prohibited from doing the following when interacting with debtors or collecting debts: 

  • misrepresenting or using false statements; 

  • publicly disrespecting or shaming debtors into paying debts; 

  • threatening to arrest the debtor; 

  • issuing threats of violence against the debtor; 

  • interacting with the debtor in an irrational manner; 

  • calling or contacting the debtor at unusual places or times; 

  • pretending to work for a government or public agency; and, 

  • harassing debtors with endless calls, demand letters, texts, or emails. 

Rather than contacting the debtor directly, creditors are allowed to get in touch with the debtor's attorney, file a complaint or lawsuit against them, or seek a judgment lien. 

Filing a Lawsuit 

According to Mississippi laws, creditors and debt collectors can commence a civil action against a debtor to seek a court judgment or order to recover outstanding debts. If successful, the creditor may be able to garnish either 25% of your disposable weekly income, or the amount by which your disposable weekly earnings are more than 30 times the federal minimum hourly wage, whichever is less. 


Alternatively, the creditor can seek a judgment lien asking the court to place a lien on your home, asset, or personal property. Through a judgment lien, the debtor may be entitled to force a sale or foreclose the property in order to settle the outstanding debt. 

Bankruptcy Effects on Creditor's Rights 

However, you may be able tostop endless creditor callsor harassment by filing for bankruptcy. Essentially, filing your bankruptcy petition will activate an "automatic stay" order. This is a court injunction that prohibits debt collectors and creditors from contacting or harassing you. Also, the creditor will be unable to repossess your property, garnish your wages, or take any legal action against you to recover debts. 

Recourse Options When Creditors Aren't Respecting Discharge 

If the debt collector or creditor violates the automatic stay order, keeps contacting or harassing you, or disobeys your bankruptcy discharge, you should document the harassment and inform your lawyer. Your attorney can take further legal action against the disobedient creditor and help you seek relief. 

Helping You Understand Your Rights 

When facing financial distress, filing for bankruptcy remains a promising solution to achieve debt relief and stop continuous creditor calls or harassment. At The Law Offices of Wes Stover, we're committed to guiding clients through the complicated legal procedures involved in filing bankruptcy. Our reliable bankruptcy attorneycan determine the right bankruptcy chapter for you and help file your petition. Also, we will outline a strategic plan to repay your debts and achieve your deserved financial relief. 

Contact us at The Law Offices of Wes Stover todayto schedule an initial consultation with a knowledgeable bankruptcy attorney. We can offer you the personalized legal counsel and advocacy you need to navigate crucial decisions in your bankruptcy case. We're proud to serve clients in Jackson, Laurel, Hattiesburg, and all of Central and South Mississippi, including the following counties: Hinds, Rankin, Madison, Jones, Forrest, Warren, Yazoo, Smith, Copiah, Simpson, Wayne, Jeff Davis, Lauderdale, Perry, Greene, Marion, Lamar, Covington, Lawrence, Lincoln, Pike, and the entire Gulf Coast. 

Consumer Rights Laws 

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