Can I Sue a Debt Collector?

A debt collector is often someone who buys a debt from a creditor who, for whatever reason, has been unable to collect from a consumer. They often pay much less than what the consumer owes, as creditors prefer to get some money rather than none. Then the debt collector goes after the consumer for the full amount of the debt.

The bottom line is that debt collection agencies have invested in your debt and must pursue collection with aggressiveness to make money. This incentive to be aggressive can sometimes lead debt collection agencies to cross the line into unlawful behavior.

When they do, you have legal options, including the right to sue. Be aware of the one-year statute of limitations. A litigation or collections attorney can help you start the process.

What To Expect When a Debt Collector Is Pursuing You

The process can be overwhelming. You get call after call, letter after letter demanding payment. You’re nervous whenever the phone rings and dread checking the mail because of what you may find. This can cause a lot of anxiety.

You do have some protection. Debt collectors and debt collection agencies must abide by strict rules when seeking to collect a debt. Although you may have remedies under state law as well, the federal Fair Debt Collection Practices Act (FDCPA) protects you against abusive practices.

What Is the Fair Debt Collection Practices Act?

Congress believed that many debt collectors engaged in abusive, deceptive, and unfair debt collection practices. In its view, these practices contributed to personal bankruptcies, marital instability, the loss of jobs, default judgments, and in general invaded consumers’ privacy. So it passed a law to stop this behavior.

The FDCPA applies to debt collectors and debt collection agencies that try to collect consumer debts, such as:

• Mortgage payments
• Credit card debt
• Medical bills
• Student loan debt
• Homeowners’ Association dues
• Dishonored checks
• Residential rent
• Water and sewer bills

Keep in mind that the statute does NOT apply to taxes, business debts, or child support obligations. Note that it does not prevent an original creditor from trying to collect its own debt, just the third-party debt collectors and debt collection agencies.

When You Can’t Sue: Required Conduct of Debt Collectors

The FDCPA requires debt collectors to:

• Identify themselves as a debt collector
• Note during the initial communication with you that the information obtained is for the purpose of collecting a debt
• Identify the name and address of whom you owe the debt to
• Tell you that you have the right to dispute the debt within 30 days (lawyers call this a “Section 1692g Notice”)
• Provide validation of the debt if asked for it

If a debt collection agency follows all the requirements, you might not have grounds to sue. 

When You Can Sue: Prohibited Conduct by Debt Collectors

The FDCPA generally prohibits debt collectors from doing all sorts of harassing things, including:

• Phone calls outside of the hours of 8:00 a.m. to 9:00 p.m.
• Swearing at you
• Lying to you
• Pretending to be a lawyer
• Communicating with you at all after you have told them in writing within 30 days of first contact to leave you alone, dispute the amount of the debt, or demand validation of the debt
• Causing your phone to ring off the hook
• Calling you at work if you or your employer tells them not to
• Sending you postcards
• Contacting anyone other than your lawyer if you have one
• Putting your name on a “bad debt” list
• Reporting or threatening to report false information to a credit reporting agency
• Threatening to take legal action without the right or intent of doing so
• Threatening to repossess property without the right or intent to do so

If a debt collector has done any of these things, you may have a reason to sue. Filing a creditor harassment lawsuit could give you relief from these deceptive or invasive methods.

Reasons To Sue: Common Claims Brought Against Debt Collectors

Consumers who choose to sue debt collectors and debt collection agencies often assert the following claims:

• Improper communications, such as calling too early or too late, calling you at work after you have told them not to, or calling you directly when you have a lawyer
• Harassment or abuse, such as using or threatening violence, using profane language, putting your name on a list of people who do not pay their bills, repeatedly calling you just to harass, annoy, or abuse you, or advertising a debt for sale to try to coerce you into paying
• False or misleading representations, such as lying about who they are or the details of the debt
• Unfair practices, such as threatening to deposit a postdated check early, threatening to repossess property without the right or intent to do so, improperly trying to garnish your wages, or calling collect so that you incur unnecessary charges
• Improper or incomplete disclosures, such as failing to notify the consumer of the right to dispute the debt, hiding the creditor’s name, or failing to state that the debt must be disputed within thirty days or else it is presumed valid
• Improper payment processing, such as failing to apply a payment as instructed or applying a payment to a disputed debt

Common Defenses a Debt Collector Might Raise in a Lawsuit

Debt collection agencies are sophisticated. They know they might get sued, so they have practices designed to minimize exposure. These include robust compliance management systems and high standards for preserving records of debts they have purchased.

If you sue a debt collector or debt collection agency, expect that they might try to avoid liability by arguing the following debt collection defenses:

• The consumer cannot prove a violation of the statute in your debt collection lawsuit, as they have the burden of proof.
• The debt collector made a bona fide error.
• The debt collector has implemented procedures reasonably adopted to avoid errors (e.g., compliance training, audits, document disposal procedures, and regular software updates and training).
• The consumer brought the claim too late (you only have a year from the date of the violation to bring your lawsuit).

A debt collection company can be a difficult opponent in court. But you can build a strategy with an experienced litigator to challenge its defense. 

If You Sue You May Be Able To Recover Damages

If a debt collector or a debt collection agency violates this law, you may be entitled to recover monetary damages, including:

• Your actual damages, which are any losses you suffered due to the debt collector’s actions
• Statutory damages up to $1,000
• Your legal costs and reasonable attorney fees

You cannot get punitive damages, as those are damages designed to punish a wrongdoer.

If you lose, you may have to pay the debt collector’s costs and attorney fees. Since this possibility can be discouraging when you’re already dealing with debt, it’s a good idea to get a consultation with a lawyer to ask about your likelihood of winning your case.

To Sue or Not To Sue: What Should You Do?

Suing a creditor may be a good idea if the following apply:

• You have a valid reason to sue, as explained above.
• You have documents, recordings, or other evidence showing the harassment or unfair practices.
• It’s not too late to sue based on the FDCPA’s statute of limitations.
• An attorney has evaluated your case and advised you that suing may be in your best interest.

Even if you decide not to sue, you could still report the debt collector to your state attorney general. The attorney general’s office may choose to investigate your complaint.

What If I Can’t Sue, But I Need To Stop Debt Collectors?

If a debt collector has followed all the rules, but you are struggling with debt repayment, you may also consider whether filing for bankruptcy is right for you. Bankruptcy can stop creditors from contacting you during the process through an automatic stay. There are both benefits and consequences of bankruptcy, so it may not be the best option for all situations. 

How To Sue a Debt Collector

If you are being harassed by a debt collector, there are steps you should take to protect yourself and your potential legal claim.

Maintain records of all contacts, whether they take place at home or at work. Record calls. Save any voice mails. Keep all texts and emails. You want to have proof in case you decide to speak with a lawyer.

Your attorney can help you determine where and how to file your lawsuit. They can also begin the initial paperwork for your case. Remember that any claim under the statute must be brought within one year of the alleged violation, so act sooner rather than later.

Many civil cases never go to the trial stage. Instead, settling a claim is a common way to close a case. In a settlement, you and the debt collector would agree on an amount it would pay you. This option can be an effective solution, but it’s best to work with a lawyer to ensure the amount is fair based on the harm you suffered. 

Changes to Debt Collection Rules

Suing a debt collector or a debt collection agency can get complicated, even more so since the federal Consumer Financial Protection Bureau (CFPB) issued a rule, effective November 30, 2021, that changed the landscape.

The rule is long but, in general, it does the following:

• Limits debt collectors to seven attempts to reach you by phone per week
• If a debt collector does reach you by phone, they must wait a week before calling you again
• Clarifies how debt collectors can communicate by voice mail, email, and text messages
• Lets you specify how you want to be contacted (phone, text, or email)
• Provides a non-exhaustive list of factors for a court to consider when determining if a debt collector can prove it complied with the law

The federal law also clarifies:

• Consumer protection requirements for certain disclosures
• How debt collectors can communicate by voice mail, email, and text messages
• That you don’t need to use some kind of magic words or phrase when telling a debt collector to leave you alone

State laws — and even local laws — can also shape debt collection practices. For example, New York City adopted the Stopping Harassment and Intimidation and Ensuring Lawful Debt (SHIELD) Collection Rule, which will expand debtor protections starting in September of 2026. Because laws can change over time, an attorney can help you understand the specific rules that may apply in your area.

Get Legal Representation Against Creditors and Collectors

The process of suing a debt collector is complicated, so consider getting the help of a lawyer. They can give you legal advice and either get you a debt settlement or represent you in court if you want them to.