What To Know About Debt Collection
What types of debts are covered under the law?
You have important rights under the Fair Debt Collection Practices Act (FDCPA) for your credit card debt, car loans, medical bills, student loans, mortgage, and other household debts. Business debts are not covered by the FDCPA.
Are debt collectors allowed to contact me at any time or place?
No. The law limits how and when a debt collector can contact you about covered debts. There are also ways to stop a debt collector from contacting you (see: How do I stop a debt collector from contacting me?)
Debt collectors:
- can’t contact you before 8 a.m. or after 9 p.m., unless you agree to it
- can’t contact you at work if you tell them you’re not allowed to get calls there
- can’t contact you by email or text message if you ask them to stop
- can’t call you more than seven times within a seven-day period or within seven days after talking with you by phone about a particular debt
- can’t privately message you on social media if you ask them to stop
How are debt collectors allowed to contact me?
Debt collectors can call you, contact you by private message on social media, or send letters, emails, or text messages to collect a debt.
What does the debt collector have to tell me about the debt?
A collector has to give you “validation information” about the debt either when they first communicate with you or within five days of the first contact. The collector has to include the following
- their name and mailing address
- the name of the creditor you owe it to
- how much money you owe, written out to include interest, fees, payments, and credits
- what to do if you don’t think it’s your debt
- your debt collection rights, including your right to get information about the original creditor if you ask for it within 30 days of getting validation information from the collector
How do I stop a debt collector from contacting me?
Mail a letter to the collection company and ask it to stop contacting you. Keep a copy for yourself. Consider sending the letter by certified mail and paying for a “return receipt.” That way, you’ll have a record the collector got it.
Once the collection company gets your letter, it can only contact you to confirm it will stop contacting you in the future or to tell you it plans to take a specific action, like filing a lawsuit. If an attorney is representing you, tell the collector. The collector must communicate with your attorney, not you, unless the attorney doesn’t respond to the collector’s communications within a reasonable time.
But consider talking to the collector at least once, especially if you don’t think you owe the debt or can’t repay it immediately. That way, you might be able to confirm whether it’s really yours or find out more about the amount owed. To avoid debt collection scammers, don’t share your personal or financial information until you’ve gotten validation information or are already familiar with the collector.
Can a debt collector contact anyone else about my debt?
Generally, a debt collector can’t discuss your debt with anyone but you or your spouse. If you’ve told the collector an attorney is representing you, the collector must contact the attorney. A collection company can contact other people to find out your address, your home phone number, and where you work, but usually it can’t contact them more than once, and it can never tell them you owe a debt.
What if I don't think I owe the debt?
Once you get the validation information (see What does the debt collector have to tell me about the debt), if you still don’t recognize a debt, or don’t think the debt is yours, send the debt collector a dispute letter. Say you don’t owe some or all of the money, and ask for verification of the debt.
Make sure to send the dispute letter within 30 days. Once the collection company gets the letter, it must stop trying to collect the debt until it sends you written verification of the debt, like a copy of the original bill for the amount you owe. Consider sending your letter by certified mail and requesting a return receipt to show that the collector got it. Keep a copy of the letter for your records.
If you don’t dispute the debt within 30 days of getting the validation information, the debt collector will assume the debt is legitimate.
What are debt collectors not allowed to do?
Collectors can’t harass you. For example, collectors
- can’t threaten to hurt you
- can’t use obscene or profane language
- can’t call you more than seven times within a seven-day period, or within seven days after talking with you on the phone about a particular debt
Collectors can’t lie. For example, collectors
- can’t tell you that you owe a different amount than what you actually owe
- can’t pretend to be an attorney or from the government
can’t tell you that you’ll be arrested, or claim they’ll take legal action against you if it’s not true
Collectors can’t treat you unfairly. For example, collectors
- can’t try to collect interest, fees, or other charges on top of the amount you owe, unless the original contract or a law says they can
- can’t deposit a post-dated check early
- can’t publicly reveal your debts, including by sending postcards or putting information on envelopes
For more details about your rights under the FDCPA, visit here.