Dealing with Debt Collectors: Know Your Rights
A call from a debt collector can be stressful, but you have real legal protections. The federal Fair Debt Collection Practices Act and the Consumer Financial Protection Bureau’s rules under it (known as Regulation F) set clear limits on what collectors can do. Many states add even more protections.
Key takeaways
- The Fair Debt Collection Practices Act (FDCPA) limits when, how and how often debt collectors can contact you.
- Collectors cannot harass you, lie to you, threaten you or discuss your debt with most other people.
- You can dispute a debt, ask for proof and tell a collector in writing to stop contacting you.
- If a collector breaks the law, you can report them and may be able to sue for damages.
Numbers worth remembering
Who counts as a debt collector?
Generally covered
The FDCPA mainly covers third-party debt collectors:
- Collection agencies
- Debt buyers that purchase old debts
- Lawyers who regularly collect debts
Generally not covered
- It generally does not cover the original creditor collecting its own debt, such as your credit card company, although some state laws do.
- The law applies to personal, family and household debts, not business debts.
What debt collectors cannot do
Call at inconvenient times
No calls before 8 a.m. or after 9 p.m. your local time, unless you agree.
Call too often
Under Regulation F, a collector is presumed to be harassing you if it calls more than seven times within seven days about a particular debt, or calls within seven days after having a phone conversation with you about that debt.
Contact you at work
If they know your employer does not allow it.
Harass or abuse you
No threats of violence, obscene language or repeated calls meant to annoy you.
Lie or mislead you
They cannot misstate the amount you owe, pretend to be lawyers or government officials, or threaten arrest or legal action they don’t intend to take or can’t legally take.
Discuss your debt with others
They can contact other people only to find your contact information, and generally cannot tell them you owe a debt.
Add unauthorized fees
Fees that your original agreement or the law does not allow.
Sue or threaten to sue on a time-barred debt
If the statute of limitations has expired, a collector cannot sue you or threaten to.
What debt collectors must do
Within five days of first contacting you, a collector must give you a validation notice.
The notice must show
- The name of the creditor
- The amount owed, with an itemization of interest, fees, payments and credits
- How to dispute the debt
You then have 30 days after receiving the notice to dispute the debt in writing. Read our full guide to debt validation and disputes.
How to handle a call from a debt collector
Stay calm and take notes
Write down the date, time, the caller's name, the company name, their phone number and what they said.
Ask for the details in writing
Ask them to send the validation notice by mail.
Check before you confirm
Don't confirm the debt is yours until you have checked it.
Don't agree to a payment on the spot
Never give a collector your bank details over the phone during a first call.
Be careful with old debts
In some states, a payment or written promise to pay can restart the statute of limitations.
Follow up in writing
Letters create a record. Send them by certified mail with return receipt.
How to stop collection calls
You can send the collector a letter telling it to stop contacting you. After that, the collector may contact you only to confirm it will stop or to tell you about a specific action, such as filing a lawsuit.
Stopping the calls does not erase the debt, and the collector can still sue if the debt is within the statute of limitations.
You can also tell a collector to stop using a specific method of contact, such as calls to your cell phone or email.
If a collector breaks the rules
Keep records of every contact
Call logs, voicemails, letters and screenshots.
File a complaint
With the Consumer Financial Protection Bureau (consumerfinance.gov/complaint), the Federal Trade Commission and your state attorney general.
You may be able to sue
Under the FDCPA, you can recover actual damages, up to $1,000 in additional statutory damages and attorney's fees. You generally must sue within one year of the violation. Many consumer attorneys take these cases at no upfront cost.
Tired of the calls?
Debt Remediation provides ready-to-use letters to dispute debts and stop collector contact, plus coaching or full-service help if you would rather not deal with collectors yourself.
Frequently Asked Questions
No. You cannot be arrested for an unpaid consumer debt in the US. A collector who threatens arrest is breaking the law. Note that ignoring a court order in a lawsuit is different and can lead to problems, so never ignore court papers.
Yes, through private messages, as long as the message is not visible to the public and they let you opt out. They cannot post about your debt publicly.
Generally no, but many states have laws that cover original creditors too, and federal rules against unfair and deceptive practices still apply.
