Your Rights During Debt Collection

Most people need to borrow money at some point in their lives. Many of us can only pay for major expenses like cars, houses, or tuition with loans. We use credit cards to pay for unexpected costs. Circumstances can cause us to get behind on our bills. When an account is past due, creditors can sell the debt to a collection agency. Debt collection agencies do what they can to collect the debt.

You have legal rights against unfair debt collection practices. We overview your rights when dealing with debt collection agencies. Contact a debt collection lawyer to learn more about protecting yourself from bill collectors.

Your Rights as a Debtor

Debt collectors have the right to contact you regarding a debt. But you also have rights under state and federal law. Under the federal Fair Debt Collection Practices Act (FDCPA), you have the following protections:

• The right to information about the debt
• The right to dispute the debt
• The right not to be harassed

Debt collectors must inform you about the debt within five days of their first contact with you. This written notice is called a validation notice. It must contain the original creditor’s name, the amount of the debt, and your right to dispute the debt.

If you believe that you don’t owe a debt or that the amount owed is incorrect, you have the right to dispute the debt. You must contact the collection agency in writing within 30 days of their first letter. If you don’t dispute the debt within 30 days, it’s assumed to be valid.

The FDCPA forbids abusive, deceptive, and unfair collection practices. Debt collection agencies can’t try to collect more than the debt. When the debt collector contacts you, they can’t use obscene or profane language. Debt collectors can’t threaten you with violence or tell you that you will be arrested if you don’t pay immediately. Generally, child support is the only debt with a risk of jail if unpaid.

Challenge Abusive Debt Collection

The FDCPA only applies to third-party debt collectors, not the original creditor. The FECPA is the federal baseline for consumer protection rights. Your state laws may offer other protections for different types of debt.

If you believe a debt collection agency engaged in abusive, deceptive, or unfair practices when talking to you, you should file a complaint with the Consumer Financial Protection Bureau (CFPB). You can also contact your state attorney general.

Why You Should Request Verification of Your Debt

Requesting verification of a debt is your legal right. There are several benefits to questioning the debt’s validity. It can keep you from paying a debt you don’t owe. Even if the debt is yours, you should verify the amount to ensure you don’t pay more than your legal obligation.

Verifying the age of the debt is also important. Every state has a statute of limitations prohibiting debt collection after a certain time. In some states, collection agents can’t contact you if your debt is older than this limit.

If an agency refuses to verify the debt, it could be a scam. If you suspect a scam, you should report fraud to the Federal Trade Commission (FTC) and contact your state attorney general’s office.

When, Where, and How Debt Collectors Can Contact You

Federal debt collection laws limit where, when, and how debt collectors can contact you. The answers below use the FDCPA to answer a few frequently asked questions (FAQ). Remember, you may also have other rights under state law.

Can Debt Collectors Call Me at Home?

Yes, within strict timelines. Debt collectors can’t call you before 8 a.m. or after 9 p.m. Make a note when debt collectors call and document phone calls outside of these times.

How Often Can Debt Collectors Call Me at Home?

Debt collectors can’t make repeated, continuous telephone calls. Agencies that call you (including leaving a voicemail) more than seven times in seven days or contact you within seven days after you’ve had an actual conversation about the debt are violating the law.

Can Debt Collectors Speak to My Family Members?

Debt collection agents can ask family members for basic information like your address and phone number. However, they can only contact these individuals once. More importantly, they can’t talk about your debt. They can only discuss your debt with you, your spouse, or your lawyer.

Can I Ask Debt Collectors To Stop Calling Me at My Job?

Yes. Debt collectors can’t call you at work if they have reason to know that your employer doesn’t let you take calls at work. If you tell a debt collector that your job doesn’t allow personal calls, the agency must stop calling you at work.

Can a Collection Agent Talk to My Co-Workers About My Debts?

No. They can speak to your employer to verify your employment. But they can’t share the details of your debts.

Can Collection Agencies Contact Me on Social Media?

Yes and no. Collection agencies can’t make public posts about your debts. However, they can send you private messages. But if you ask them to stop, they must cease.

Stopping Debt Collectors From Contacting You

If you want a debt collection agency to stop calling you, sending a letter is the best thing to do. The letter should ask the agency to stop contacting you by mail, phone, or social media. The FTC recommends that you send the letter via certified mail and get a return receipt to prove that you sent it.

Once it gets your letter, the collection agency can only contact you to confirm that it received your letter or to tell you about taking legal action. You can still face lawsuits, wage garnishment, repossession, or other legal repayment actions. For more information about how to deal with debt collectors, talk to an experienced debt collection attorney.