Those facing financial challenges, and even bankruptcy, are often all too familiar with the steps creditors take when trying to seek repayment of credit card debt or other delinquent loans.

Readers in Appleton, Wisconsin, may have heard of this news story involving a man who reportedly was the victim of creditor harassment. According to the man, a U.S. Army veteran who is 100 percent disabled following trauma to the head and spine, the representative from the debt-collection agency Gurstel Chargo told him that his wife should divorce him, he should have served his country better and he should have died.

The lawsuit also alleges that the company froze his wife’s bank account and took $6,000, despite the fact that disability benefits are not able to be garnished. Although the company’s lawyer reportedly agreed in court that the money should not have been taken and would be returned, the state of the funds is unclear.

The company has also acknowledged the alleged insults made by the debt-collection representative, stating in its response to the suit that those actions, if found true, were not done in accordance with company policies.

Under the Fair Debt Collection Practices Act, collection agencies must refrain from using any harassing or abusive language when attempting to collect debts. It is important for those who feel they have been victims of creditor harassment to understand their rights and responsibilities in regards to debt-collection agencies and to take any necessary steps to make sure that such companies are following the provisions set forth in the law.

Source: Huffington Post, “Michael Collier, Disabled Vet, Claims Debt Collection Agency Insulted Him, Told Him He ‘Should Have Died’,” Ryan Grenoble, Oct. 16, 2012