Times are tough, even for debt collectors.

Having a hard time collecting, some are even lying and harassing people to get their money. Complaints are on the rise, so you need to know your rights.

Mariko Mudd knew the phone would keep ringing. She owed $4,000 and couldn't pay.

But one day, the bill collector crossed the line from aggressive to threatening.

"It was very, very scary indeed," she said.

Mudd says the caller said, "if that money wasn't paid by the end of that day, that they would throw me in jail."

Afraid the police were on their way, Mudd left the house.

Unable to reach her, the debt collector then called every number he had, reached her father and convinced him to pay the $4,000 to keep his daughter from being arrested.

What happened to Mudd is illegal.

"A debt collector may not make any false statements in the collection of a debt," said Karen Hickey with the Federal Trade Commission. "They cannot threaten arrest or imprisonment if the consumer does not pay the debt."

Last year the FTC got more than 70,000 complaints about debt collectors, which is more than any other industry it regulates.

The collection industry says the percentage of complaints to calls is small, and most are resolved to the consumer's satisfaction.

Fiona Adams says her collectors harassed her even after she settled with them.

"I was bullied, yelled at," she said. "I've never experienced anything like that. They talk very fast. They talk over you so you can't get a word in edgewise. They know exactly what they're doing."

Finally, the Attorney General's Office got the collection agency to send a letter to Adams stating her debt was paid in full.

A number of KOMO viewers have contacted the Problem Solvers recently about calls from a debt collector. They say they don't owe the debt or can't remember it.

Some of these calls could be scams. Others are legitimate. Collection agencies now buy up old debt from companies that need cash and try to get some money back.

Here's what you do if you get contacted and you don't think you owe the money. Write the collector and dispute the debt. The company has 30 days to send you proof of the debt or stop collection efforts.

More Information:

Your rights under the Fair Debt Collection Act

There's a time limit on collecting debts