No one looks forward to hearing from debt collectors. But many people don’t realize that debt collectors aren’t just annoying — their collection efforts can seriously disrupt your life and your finances. Fortunately, you can better protect yourself by learning what debt collectors can and can’t do.
What Debt Collectors Can and Can’t Do Under the FDCPA
Every consumer should understand their debt-collection rights. The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collectors from using abusive, unfair, or deceptive practices when collecting certain consumer debts. The FDCPA generally applies to debt collectors rather than every original creditor, although other federal and state laws may provide additional protections.
What actions are debt collectors legally allowed to take? Here’s a breakdown of some key rights.
Calling
Debt collectors are infamous for making intrusive phone calls. Federal rules place limits on when and how often collectors may call:
- Collectors generally may not call before 8 a.m. or after 9 p.m. in your time zone.
- They may not contact you at a time or place they know or should know is inconvenient, and workplace calls may be prohibited if the collector knows your employer does not allow them.
- A collector is presumed to violate federal rules if they call more than seven times within seven days about a particular debt.
- A collector is also presumed to violate the rules if they call within seven days after having a telephone conversation with you about that particular debt.
The law also restricts what collectors can say and how they can behave. More specifically:
- They may not falsely represent themselves as police, attorneys, or other authorities.
- They may not misrepresent the amount or legal status of the debt.
- They may not use threats, obscene language, or other abusive tactics.
- They may not threaten to take legal action they cannot take or do not intend to take.
Debt collectors also may not threaten to have you arrested simply because you haven’t paid a consumer debt.
Contacting Other People
Debt collectors generally may contact other people, such as family members, friends, or neighbors, to obtain information about how to reach you. However, they generally may not tell those people that you owe a debt. There are exceptions for certain people, including your spouse and attorney.
Debt collectors also aren’t allowed to publish lists of people who owe money or otherwise publicly disclose a debt as a collection tactic.
Contacting You on Social Media
Debt collectors can contact you through social media, but federal rules restrict how they do it. If a collector communicates with you about a debt on social media, the message must be private rather than visible to the public.
If a collector sends a private request to add you as a friend or contact, they must identify themselves as a debt collector. They also must provide a simple way for you to opt out of further communications through that social media platform.
Notification Requirements
Debt collectors generally must provide certain information about the debt in their initial communication or send you a validation notice within five days. The notice includes information intended to help you identify the debt and understand how to dispute it.
If you dispute all or part of the debt in writing within the applicable 30-day validation period, the collector generally must stop collecting the disputed amount until it provides verification of the debt.
What Rights Do I Have Against Debt-Collector Harassment?
If you’re getting repeated calls from a collector, keeping a record of call dates, times, and what was said may help you document the pattern. If you believe a collector is violating federal or state law, you may want to speak with a consumer protection attorney.
Even when a collector’s communications do not violate the law, you may be able to tell the collector to stop contacting you. One option is a written cease-communication request.
After receiving a written request to stop communicating, a debt collector generally must stop contacting you about that debt. There are limited exceptions, such as notifying you that collection efforts are ending or that the collector may pursue a specific legal remedy. Stopping communications does not eliminate the debt or necessarily prevent other lawful collection activity.
If you want help communicating with a debt collector, the CFPB provides sample debt-collection letters for several situations.
What’s the Worst a Debt Collector Can Do?
One of the most serious steps a debt collector may take is filing a lawsuit to collect a debt. However, collectors generally may not sue or threaten to sue over a debt when the applicable statute of limitations for filing the lawsuit has expired.
If a collector files a lawsuit, ignoring it can have significant consequences. The CFPB recommends responding to a debt-collection lawsuit rather than assuming the collector will automatically prove its case. Deadlines and court procedures vary by jurisdiction.
If the collector wins a judgment, that court order may give the creditor access to additional collection tools. Depending on federal and state law, those can include:
- Garnishing a portion of your wages
- Placing a lien on certain property
- Garnishing or levying money in a bank account
Federal and state exemptions may protect some wages, benefits, or other funds from garnishment.
If you’re facing a debt-collection lawsuit, possible responses may include disputing the debt, seeking legal assistance, or discussing payment or settlement options, depending on your circumstances.
The Importance of Knowing Your Rights
The FDCPA and related federal rules give consumers important protections against abusive, unfair, and deceptive debt-collection practices. Understanding what collectors can and can’t do can help you recognize questionable collection tactics and make more informed decisions about how to respond.
FAQ
How Can I Stop Debt-Collection Calls Effectively?
You can generally send a debt collector a written request telling them to stop contacting you. After receiving it, the collector generally must stop most communications, although limited exceptions apply. The request does not erase the debt or prevent every other lawful collection action.
Can a Debt Collector File a Lawsuit Against Me?
Yes, a debt collector may be able to file a civil lawsuit to collect a valid debt. However, federal rules prohibit debt collectors covered by the FDCPA from suing or threatening to sue to collect a time-barred debt after the applicable statute of limitations has expired.
What Is the 7-7-7 Rule for Debt Collectors?
The phrase “7-7-7 rule” is commonly used to describe federal call-frequency limits. A debt collector is presumed to violate federal rules if they call more than seven times within seven days about a particular debt or call within seven days after speaking with you by phone about that debt. The rules include exceptions, and call frequency is only one factor in determining whether conduct is harassing.
