Your Legal Rights When Dealing With Debt Collectors

The Fair Debt Collection Practices Act (FDCPA) protects you from abusive debt collection tactics. Debt collection is allowed, but harassment and deception are not. Collectors who break the law can face legal consequences, and you can hold them accountable.

Constant calls, threatening letters, and aggressive demands can make debt even more stressful. If you’re facing these tactics, federal law may protect you. If you’re worried about a debt collector’s behavior, a consumer protection attorney can review your situation and explain your rights under federal and state law.

Who Is Covered by the Fair Debt Collection Practices Act?

The FDCPA applies to third-party debt collectors. This includes collection agencies hired by creditors, attorneys who regularly collect debts, and companies whose main business is debt collection.

In general, the law does not apply to original creditors collecting their own debts. Debt buyers who purchase accounts and collect for their own benefit, rather than on behalf of another party, may also fall outside FDCPA coverage. In Henson v. Santander Consumer USA Inc. (2017), the U.S. Supreme Court ruled unanimously that a company purchasing defaulted debts and collecting on them for its own account is not a “debt collector” under the FDCPA, as it is not collecting debts owed to another party.

The law protects you from abusive collection practices for personal, family, or household debts. This includes credit cards, medical bills, car loans, student loans, and mortgages. It does not apply to business debts.

Many states have their own debt collection laws that may provide you with additional protection. For example, California’s Rosenthal Act applies similar rules to original creditors. Your rights can depend on both federal and state law, depending on where you live.

Other federal laws, such as the Telephone Consumer Protection Act (TCPA), restrict autodialed or prerecorded calls and texts to your cell phone without your prior express consent. State consumer protection laws may also give you additional remedies.

Things Debt Collectors Can’t Do

Most debt collectors follow the law, but some use illegal tactics. The FDCPA makes it unlawful for collectors to do any of the following:

• Lie about your debt or pretend to be an attorney
• Threaten you with arrest or actions they cannot legally take
• Call before 8 a.m. or after 9 p.m. in your time zone
• Publish or advertise your debt in order to shame or pressure you into paying
• Use obscene or profane language
• Threaten violence or harm
• Call repeatedly to harass you
• Contact you at work if the collector knows or has reason to know that your employer does not permit such calls
• Contact your family, friends, neighbors, or coworkers about your debt, except to locate you
• Claim you have committed a crime
• Threaten to sue unless they actually intend to file a lawsuit
• Add unauthorized fees or interest
• Deposit post-dated checks early
• Send documents that look like court or government agency papers
• Discuss your debt with third parties, including disclosing to others that you owe a debt, outside of narrow statutory exceptions such as contacting a consumer reporting agency or communicating with your own attorney

It’s important to be aware of what collectors aren’t permitted to do. Knowing your rights under the FDCPA not only limits what collectors can do, but also lets you know when they’ve gone too far.

Right to Debt Validation

Unless the required information was already included, the debt collector should send you a written notice within five days of initial contact. This notice should include:

• The amount of the debt owed
• The name of the creditor
• A statement that you have 30 days to dispute the debt
• A statement that the collector will provide verification if you dispute the debt in writing within that period
• A statement that the collector will provide the original creditor’s name and address upon written request within the 30-day window

On November 30, 2021, the CFPB‘s Regulation F expanded these requirements to include additional information identifying the debt. It should also include an itemization date and a notice that more information about consumer protections is available at the CFPB‘s website.

If you file a written dispute of the debt within 30 days, the collector should cease collection until they send verification or a copy of a judgment. Courts say verification means more than just repeating the amount owed, even though the law does not define it. Collectors who keep trying to collect without sending this documentation are breaking federal law.

You can still dispute a debt after 30 days, but only those made within the window require the collector to pause collection. Missing the deadline does not mean you admit you owe the debt.

To request validation, send a formal dispute letter by certified mail with return receipt. In your letter, state that you are disputing the debt and request validation under the FDCPA. Keep a copy for your records.

Right To Stop Contact

You have the right to demand in writing that a debt collector stop all communications with you. Once the collector receives your written request.it must stop contacting you. There are three narrow exceptions. The collector may still reach out to advise you that collection efforts are ending, to notify you that certain remedies may be invoked, or to inform you that a specific remedy is being pursued.

Sending a cease communication letter does not erase the debt. The collector can still engage in credit reporting to bureaus, sue you, or take other legal collection steps. It will stop the calls and letters.

Right to Privacy

In general, debt collectors can’t discuss your debt with others or third parties. There are only narrow exceptions to this, such as contacting your attorney, a consumer reporting agency, the creditor, or the creditor’s attorney. Telling neighbors, coworkers, or family members about your debt is an FDCPA violation.

Right To Limit How They Contact You

You also have more control over how collectors contact you under the Consumer Financial Protection Bureau‘s Regulation F. Collectors are presumed to violate the law if they place more than seven phone calls to you within a seven-day period about a particular debt, or place a call within seven days after speaking with you about that debt. This presumption applies to phone calls. Texts, emails, and social media messages are subject to separate rules under Regulation F, including opt-out requirements and the general prohibition on harassing or oppressive conduct.

Right To Sue for Violations

If a collector violates any provision of the FDCPA, you have the right to bring a private lawsuit in state or federal court.

How To Stop Debt Collectors From Contacting You

If a debt collector calls you too often, uses threats or abusive language, or tries to collect a debt resulting from identity theft, you have legal options.

Write a Cease Communication Letter

The first step is to send the collector a letter telling them to stop contacting you. Under the FDCPA, the collector must comply after receiving your letter. However, this is subject to the three narrow exceptions described above.

The letter doesn’t erase the debt. The collector can still sue you, report the debt to credit bureaus, or take other legal steps. You will still need to deal with the debt by paying it, disputing it, settling it, or considering bankruptcy.

Document All Contact

Keep a record of every contact from collectors, as documenting all debt collector contacts is vital for your case. Write down the date, time, who contacted you, what was said or written, and if anyone else was present.

You may also want to record calls. In most states, you can record a call you are part of without telling the other person. Some states require everyone on the call to agree. Check your state’s laws before recording.

Will Debt Collectors Take You to Court?

A debt collector can sue you to collect an unpaid debt. Lawsuits are usually a last resort, but can happen if you don’t respond to earlier contact. Under the FDCPA, a collector can only sue you in the state where you live or where you signed the contract.

The Statute of Limitations

Every state sets a deadline for how long a collector can sue you for an unpaid debt. After that time has passed, the debt is “time-barred,” and the collector can’t obtain a court judgment. The deadline is usually three to six years, but some states allow more time.

If you make a payment or admit in writing that you owe an old debt, you may restart the statute of limitations in many states. Be careful about what you say or sign if a collector contacts you about an old debt.

Suing or threatening to sue on a time-barred debt is itself an FDCPA violation. If you do not raise the statute of limitations as a defense in court, a judge may still enter a judgment against you. Ignoring a lawsuit is never a safe strategy.

What Happens if You’re Sued

If a collector sues you, you’ll receive court papers that list the debt, the amount claimed, and your deadline to respond. You may have as little as 20 to 30 days to reply.

Don’t ignore a lawsuit. If you don’t respond, the court will likely enter a default judgment. A judgment lets the collector garnish your wages or take money from your bank account.

Federal law caps how much a collector can take from your paycheck. The limit is whichever is lower: 25% of your weekly disposable earnings, or the portion of your weekly disposable earnings that exceeds 30 times the federal minimum wage. Some states impose lower limits. Certain income and property is also exempt from collection under federal and state law, including many federal benefits such as Social Security, disability payments, and veterans’ benefits.

If You Are “Judgment Proof”

If you have no income or assets that collectors can reach, you may be “judgment proof.” Even if a collector wins in court, they may not be able to collect anything from you. Judgments can last for years, so this status may change if your finances improve. Consider speaking with a consumer law attorney if you think this applies to you.

How Bankruptcy Can Stop a Lawsuit

Filing for bankruptcy puts an automatic stay in place. This court order stops most collection activity right away, including lawsuits, wage garnishments, and calls from collectors. Depending on the type of bankruptcy, you may be able to erase the debt or set up a repayment plan.

What To Do if a Debt Collector Violates Your Rights

If a collector crosses the line, you have several options. You can report the conduct to federal and state agencies, or take the collector to court.

File a Complaint With the FTC and the CFPB

You can file a complaint online with the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). Include the collection agency’s name and address, the original creditor’s name, dates and times of contact, names of witnesses, and copies of any letters or recordings. These agencies do not resolve individual cases, but your complaint helps them spot patterns and take action against violators.

File a Complaint With Your State Attorney General

Send a complaint to your state attorney general’s office or consumer protection office. Send copies to the collection agency and the original creditor. This process can take time and results will vary, but filing a complaint creates a record and may make collectors change their behavior.

Sue the Debt Collector

You also have the right to sue a collector that violates the FDCPA. This is a strict liability law, meaning you do not need to prove actual harm to recover damages.

You have one year from the violation to file a lawsuit in state or federal court. A successful FDCPA lawsuit can result in statutory damages of up to $1,000, reimbursement for proven losses such as missed work or emotional harm, and recovery of your legal fees and filing costs.

If you lose and the court finds you sued in bad faith or to harass the collector, you may have to pay their attorney’s fees and costs. Winning an FDCPA lawsuit does not erase the debt itself. You still owe the debt, even if the collector broke the law.

Get Legal Help With Debt Collection Issues

Debt collection laws are complex, and your rights depend on your state. If a debt collector is harassing you or you think your FDCPA rights have been violated, a consumer protection attorney can review your case. They can help you file a legal action, spot possible violations, and explain your next steps.