Understanding Your Rights Under the Fair Debt Collection Practices Act

Dealing with a debt collection agency can be stressful. Falling behind on financial obligations is not pleasant. However, there are laws that protect you from harassment by debt collectors. One of those laws is the Fair Debt Collection Practices Act (FDCPA). This federal law sets rules for debt collectors to follow when they engage in collection activities.

If debt collectors violate the FDCPA, you can take legal action. Talk to a lawyer with experience in debt collection for more information about your consumer rights.

The Fair Debt Collection Practices Act

It’s illegal under the Fair Debt Collection Practices Act for debt collectors to use abusive or deceptive practices or make deceptive statements when they attempt to collect debts.

The FDCPA covers most consumer debts and household debts like mortgages, credit cards, student loans, and medical bills.

The law applies to third-party debt collectors. Creditors don’t have to comply with the FDCPA if they’re trying to collect their own debt. This includes the collection department of your credit card issuer or your hospital. However, if your credit card issuer assigns the debt to another company to collect, then that other company must follow the FDCPA.

What Debt Collectors Can’t Do

The law defines several unfair debt collection practices. For example, debt collectors cannot:

• Call you unless it’s between 8 a.m. and 9 p.m. (your time)
• Call you more than seven times in seven days
• Call you again within seven days if they speak to you about the debt
• Use abusive, obscene, or profane language to you
• Contact you at work if you ask them to stop doing so
• Make misleading representations, such as lying about the amount of the debt, pretending to be a lawyer or government agent, or threatening arrest for non-payment or garnishment of federal benefits like Social Security or veterans benefits
• Contact your family and friends about your debt
• Ask you for a post-dated check or deposit one early if you send one
• Communicate with you publicly through social media
• Garnish money from your bank account or paycheck without a court order

Most importantly, debt collectors cannot have you arrested for unpaid debts. Debt collection is a civil matter.

What Debt Collectors Can Do

While the FDCPA provides several safeguards, debt collectors are still allowed to contact you. They can call you and send you letters (but not postcards), private messages on social media, emails, and text messages. However, they must stop if you ask them to.

While they cannot talk about your debt to friends and family, they can ask them for your contact information. They can also report late debts to the credit reporting agencies. This information will show up on your credit report for seven years.

Secured creditors can repossess the goods pledged as collateral for the loan. For example, a car dealer may take the car back when you fall behind on the loan payments.

What Debt Collectors Must Do When Contacting You

If debt collectors want to contact you, there are rules they have to follow. If you specify a preferred contact method — mail, telephone, email, etc. — they must follow it. When calling you, they must identify themselves and explain the purpose of the call. If contacting you in writing, they must provide the debt collector’s name, the name of the creditor, and a mailing address. If you’ve hired a lawyer to represent you, collectors must call your lawyer.

Debt collectors must provide information about the debt within five days of their first contact with you. This is called “validation information.” The “validation notice” is generally in writing and includes the amount of the debt and the name of the original creditor.

If you dispute the debt or part of it, the collection agent must obtain verification of the debt. If you don’t dispute the debt within 30 days, the collection agency will assume the debt is yours.

What To Do if a Debt Collector Violates Your Rights

There are several steps you can take if a debt collector is breaking the rules. You may have to act swiftly. Under the FDCPA, you have one year from the date of the violation to file your lawsuit.

For the federal government, you can report the debt collector to the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC). These two agencies often work together on consumer protection issues when it comes to debt collection activities.

You can contact your state attorney general’s office, which will investigate if collectors violated any state consumer protection laws.

You should also consider calling a collections lawyer, who can help you sue a debt collector in state or federal court. A successful lawsuit proving FDCPA violations could mean you can recover compensation and have your attorney fees covered.

Tips on Dealing with Debt Collectors

It’s a good idea to keep copies of your communications with debt collectors. If you send letters, send them via certified mail and pay extra for “return receipts” so you have proof the debt collector received your letters.

Check the statute of limitations. All states have a deadline for collecting consumer debts, and it varies widely. Some states allow three years to collect consumer debts, while some states allow 10 years. Debt collectors cannot sue you if the deadline has passed.

A Debt Collections Lawyer Can Help

You have consumer rights under state and federal law when facing non-payment of debts. Dealing with debt collectors is tough. An experienced collections lawyer can help protect your rights, speak to collectors on your behalf, and represent you in negotiations and in court.