Is it legal:

[ghouck]

for a collection service or a debtor to threaten to damage one's credit rating as leverage? I have someone claiming I owe them money, and can not come up with any proof, but are threatening to cause damage to my credit rating. Is that even legal?

[The Burgomaster]

Well you could try this:

Fight Against Collectors
No Charge to Consumers Lawyers Fight For You
www.FairDebtLawyers.com

"We Do Not Charge The Consumer Any Fees, The Fair Debt Collection Practices Act Dictates That The Collection Agency Must Pay Your Reasonable Attorney Fees If You Win Your Claim! We Even Advance Your Court Costs! If Your Claim is Not Successful You Still Do Not Have To Pay Us!

When Enough is Enough! You Can Fight Back When Collectors Go Over The Line! No Fees To You-The Collection Agency Will Have to Pay You if You Win Your Suit and They Have to Pay Your Attorney Fees!!

If what a collector or lawyer is saying to you just doesn't make sense it probably should not have been said. Even if you owe the debt or some portion of the debt but have fallen behind, that does not give anyone the right to threaten and embarrass you.

Congress passed a law called the Fair Debt Collection Practices Act ("FDCPA") in 1977 to protect consumers from abusive collectors. The FDCPA says, in effect, that consumer debt collectors must follow some basic guidelines when dealing with consumers. The following types of behavior by a debt collector toward a consumer over the telephone, in writing, or in person will likely be a violation of the FDCPA:

Disrespectful
Undignified
Unfair, or
Untrue

If you feel that you have been treated in such a manner, you may have a right to sue the debt collector and get money back from THEM for their misconduct.

If a debt collector has left a voice mail for you or discussed your matter with co-workers or other family members they may have violated the FDCPA.

We are happy to review your situation and let you know if you have a case.  There is no cost to you. 

If you are successful in an FDCPA claim, you can get up to $1,000.00 for the violation plus any actual damages you may have suffered.  The best part is the collector will have to pay your attorney fees. 

We do not charge any fees to you, we only collect from the collector!!"

I got the link right off this badmovies.org website!

[Rev. Powell]

for a collection service or a debtor to threaten to damage one's credit rating as leverage? I have someone claiming I owe them money, and can not come up with any proof, but are threatening to cause damage to my credit rating. Is that even legal?

Possibly.  I know they have to put it in writing and you have 30 days to dispute it.  Also, you can order them to stop harassing you, and they must stop if you request it.  Your state may have additional protections.  Here's the text of the Fair Debt Collection Practices Act: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf.

I am obligated to tell you that you should seek the help of a lawyer licensed in your state.  That website is one way to find one, but I would ask around for personalized recommendations.  Look for someone who'll give you a free consultation, at least.  That couldn't hurt.

[flackbait]

for a collection service or a debtor to threaten to damage one's credit rating as leverage? I have someone claiming I owe them money, and can not come up with any proof, but are threatening to cause damage to my credit rating. Is that even legal?

Just out of curiousity did you look up the company? Since they have no proof that you owe somebody money I wonder if it could be a scam.

[ghouck]

for a collection service or a debtor to threaten to damage one's credit rating as leverage? I have someone claiming I owe them money, and can not come up with any proof, but are threatening to cause damage to my credit rating. Is that even legal?

Just out of curiousity did you look up the company? Since they have no proof that you owe somebody money I wonder if it could be a scam.

No, it's a hospital I went to when I broke my foot. Their 'proof' is that I visited them, but I paid the bill. I'm not sure how this plays out since they're trying to prove a negative, and rather than proving anything, they just sit back and say "It's impossible to prove a negative".

[Jack]

I'd go to the hospital, with all my invoices and canceled checks / insurance statements in hand, talk to someone in their accounting department, and not leave until they got on the phone with the collection agency and got the whole damned thing straightened out.

[ghouck]

That's the problem, it's been so long I don't have any of those anymore.. . I may be screwed here, but I still want to stick it to them if I can for the threats.

[flackbait]

Okay that makes sense. I was just curious because I've heard of scams with phony collection agencies before. Sounds like to me Revs or Burgomasters advice might be best if you want to stick it to them for the threats.