Having debt in collections is an unfortunate reality for millions of Americans — especially those who are struggling with unexpected financial hardships. But while facing a debt collection issue may be common, it can also have a big impact on your finances, and receiving calls, letters or lawsuit threats from debt collectors can also be a significant source of stress. In the end, debt collectors may use less harsh methods at first, but if you don’t pay what you owe, they may start to bother you or treat you unfairly over time.
But what you may not realize is that while debt collectors are legally permitted to seek repayment from you on behalf of creditors, there are strict rules in place to prevent them from using abusive, deceptive or unfair practices. The Fair Debt Collection Practices Act (FDCPA) sets rules for how debt collectors can behave and protects consumers from being mistreated. Knowing your rights is important for dealing with debt collectors and staying safe from illegal behavior.
Despite these protections being in place, though, many people are unaware of what exactly debt collectors can and cannot do during the debt collection process. If you know the rules that debt collectors must follow, you can handle collection attempts with confidence and make sure your rights are respected.
Getting calls from debt collectors can be stressful and intimidating Many consumers aren’t aware of their rights when it comes to debt collection practices This article will clarify exactly what actions debt collectors are prohibited from taking.
An Overview of Debt Collection Laws
The main law governing debt collection practices in the United States is the Fair Debt Collection Practices Act (FDCPA) This federal law places restrictions on what debt collectors can do when attempting to collect certain types of debt, mainly personal, family, or household debt
In addition, the Fair Credit Reporting Act (FCRA) regulates how debts can be reported on your credit report. States also have additional laws limiting unfair debt collection methods.
Key Protections Under the FDCPA
Under the FDCPA, debt collectors cannot:
-
Contact you at inconvenient times or places: They can only call between 8am-9pm in your time zone, and cannot call you at work if you’ve requested they don’t.
-
Harass, threaten, or abuse you: It is against the law to use abusive language, make false jail threats, or make repeated calls that are meant to scare you.
-
Tell lies or misleading things: It’s against the law for debt collectors to lie about how much money is owed, act like lawyers, or threaten to do illegal things.
-
Talk about your debt with other people: Debt collectors can only tell you, your spouse, or your lawyer about your debt.
-
Threaten illegal actions: Threats to arrest you, garnish wages, or seize property illegally violate the FDCPA.
-
If it’s not allowed by state law or your original contract, add fees or interest to the debt.
-
Depositing postdated checks early: Collectors must follow your check’s date.
-
Contact you after you request no further communication: You can demand in writing that collectors stop contacting you.
-
Contact you if you have legal representation: Collectors must contact your attorney rather than you directly if requested.
-
Sue after the statute of limitations: Varies by state, but collectors can’t sue you after a certain period of time.
Your Recourse If Rights Are Violated
If a collector violates the FDCPA or uses prohibited practices, you have options:
-
File a complaint with the Consumer Financial Protection Bureau (CFPB) or your state attorney general.
-
Consult with a consumer rights attorney about suing the debt collector. You may be awarded up to $1,000 per violation.
-
Document all communication and interactions with the collector as evidence.
-
Dispute debts validated, negotiate settlements, or make payment arrangements through legal channels only. Avoid engaging with abusive collectors.
How to Handle Communication
When initially contacted by a collector, you should request written validation of the debt. This must include the amount owed, original creditor name, and your right to dispute within 30 days.
Always communicate with collectors solely in writing. Don’t provide personal details over the phone. Research collectors thoroughly and be aware of your rights.
If you believe a debt collector is violating the law, cut off contact immediately. Seek legal counsel to ensure you are protected.
Stopping unlawful debt collection practices begins with understanding your rights under federal and state law. The FDCPA prohibits harassing, threatening, or deceitful conduct. Debt collection can feel overwhelming, but knowledge of legal protections will empower you to handle collectors confidently. Assert your rights, hold violators accountable, and seek assistance to resolve debts fairly.
Contacting you after you’ve requested they stop
You have the right to request a debt collector stop contacting you, and they must honor this request. After you send a written “cease and desist” letter, the debt collector can only call you to confirm they will not be calling you anymore or to let you know about certain actions they are taking, like suing you. This rule empowers you to end persistent communication that may feel intrusive or overwhelming.
8 things debt collectors can’t do
Not sure what tactics debt collectors can use during the collections process? Here are some of the key actions that debt collectors are prohibited from taking.
Getting Sued By A Debt Collector? DO THIS FIRST!
FAQ
What are 2 things that debt collectors are not allowed to do?
Debt collectors cannot harass or abuse you. They can’t swear, say they’ll hurt you or your property illegally, threaten to do something illegal, or lie and say they’ll do something they don’t plan to do. They also cannot make repeated calls over a short period to annoy or harass you.
What’s the worst a debt collector can do?
The worst thing a debt collector can do is violate the Fair Debt Collection Practices Act (FDCPA) by engaging in abusive, deceptive, or unfair practices. This includes things like making violent threats, using bad language, lying about who they are, exaggerating the amount of the debt, or threatening legal action they can’t or won’t take.
What debt collectors don’t want you to know?
5 Things Debt Collectors Don’t Want You to KnowSometimes you can’t be sued. Your debt may have been sold or stolen. Your credit report won’t be squeaky clean after you pay. If a collector breaks the rules, you can report it. Being sued for debt doesn’t mean you’ll lose.
What are the 11 words to stop a debt collector?
The 11-word phrase to stop a debt collector from contacting you is: “Please cease and desist all calls and contact with me, immediately. “.