Debt Collectors Have Rules. Most of Them Break Them.
If you have ever received a threatening phone call from a debt collector, you know how intimidating and stressful it can be. Collectors may pressure you to pay immediately, warn you of dire consequences, or call repeatedly at all hours. What many consumers do not realize is that much of this behavior is illegal.
The Fair Debt Collection Practices Act (15 U.S.C. § 1692) is a federal law that strictly regulates how third-party debt collectors can communicate with consumers. It prohibits a wide range of abusive, deceptive, and unfair practices. If a debt collector violates the FDCPA, you may be entitled to damages -- even if you actually owe the debt.
Who Is a "Debt Collector" Under the Law?
This is an important distinction. The FDCPA applies to third-party debt collectors -- companies whose primary business is collecting debts owed to other companies, as well as companies that purchase debts from original creditors and then attempt to collect them. In most cases, the FDCPA does not apply to the original creditor (for example, your credit card company collecting on your own account). However, if the original creditor uses a different name when collecting in a way that would suggest a third party is involved, the FDCPA may still apply.
Debt buyers -- companies that purchase charged-off debts for pennies on the dollar and then attempt to collect the full amount -- are also covered by the FDCPA.
Prohibition 1: Calling Before 8 AM or After 9 PM
Under the FDCPA, debt collectors are not permitted to call you at times that are known to be inconvenient. The law specifically provides that calls before 8:00 AM or after 9:00 PM in your local time zone are presumed to be inconvenient. If a collector is calling you early in the morning or late at night, that is a violation of federal law.
This rule also applies to text messages and other forms of electronic communication that may serve as a substitute for phone calls.
Prohibition 2: Contacting You at Work After Being Told to Stop
A debt collector may attempt to reach you at your place of employment. However, if you tell the collector -- verbally or in writing -- that your employer does not allow you to receive such calls, or simply that you do not want to be contacted at work, the collector must stop. Continuing to call your workplace after being told to stop is a violation of the FDCPA.
We recommend making this request in writing so you have clear documentation if the collector ignores it.
Prohibition 3: Threatening Arrest, Violence, or Legal Action They Cannot Take
Debt collectors are prohibited from using threats of violence or criminal prosecution to pressure you into paying. Specifically, a collector cannot:
- Threaten to have you arrested for owing a debt (you cannot be jailed for consumer debt in the United States)
- Threaten bodily harm or use profane or abusive language
- Threaten to sue you if they have no actual intention or legal authority to do so
- Threaten to seize your property, garnish your wages, or take legal action that they cannot lawfully take
These threats are not only unethical -- they are illegal. Each one may constitute a separate violation of the FDCPA.
Prohibition 4: Using Deceptive Practices
The FDCPA prohibits debt collectors from using any false, deceptive, or misleading representations. Common examples include:
- Misrepresenting the amount of the debt
- Claiming to be an attorney when they are not
- Implying that they work for a government agency or a credit bureau
- Sending documents designed to look like court papers or official government correspondence
- Adding unauthorized fees, interest, or charges to the amount owed
- Falsely claiming that failure to pay will result in arrest or imprisonment
Even subtle misrepresentations can violate the law. If something a debt collector tells you feels misleading or does not add up, it may well be illegal.
Prohibition 5: Continuing Contact After a Written Cease-and-Desist
You have the right to tell a debt collector to stop contacting you entirely. Under the FDCPA, if you send a written notice to a debt collector requesting that they cease all communication, the collector must comply. After receiving your letter, the collector may only contact you one final time to confirm that collection efforts have ended or to inform you that they intend to take a specific action, such as filing a lawsuit.
It is important to understand that sending a cease-and-desist letter does not make the debt go away. The collector may still pursue legal remedies. But the harassment must stop.
- Keep a call log: Write down every call you receive, including the date, time, phone number, the name of the person who called, and what was said.
- Save voicemails: Do not delete them. Voicemails are powerful evidence of FDCPA violations.
- Keep all letters and correspondence: Save every piece of mail you receive from the collector, including the envelope.
- Do not engage in arguments: You are not required to discuss the debt. You are within your rights to end the call.
- Send a written cease-and-desist letter via certified mail if you want the calls to stop.
Your Right to Request Debt Validation
Within 30 days of a debt collector's first communication with you, you have the right to request written verification of the debt. This is called a debt validation request. Once you make this request, the collector must stop all collection activity until they provide you with verification that includes:
- The amount of the debt
- The name of the original creditor
- Documentation demonstrating that the collector has the right to collect the debt
If the collector cannot validate the debt, they are not permitted to continue collection activity or report the debt to the credit bureaus. If they continue to collect on an unvalidated debt, that is itself a violation of the FDCPA.
Damages Available Under the FDCPA
The FDCPA provides meaningful remedies for consumers whose rights have been violated:
- Actual damages: Compensation for financial harm, emotional distress, and other real consequences of the collector's illegal behavior
- Statutory damages: Up to $1,000 per lawsuit, available even if you cannot prove specific monetary harm
- Attorney's fees and costs: The collector is required to pay your attorney's fees if you prevail, meaning there is typically no out-of-pocket cost to you
If a debt collector has threatened you, called excessively, contacted you at work after being told not to, misrepresented the debt, or continued calling after a cease-and-desist, you may have a legal claim. An attorney can evaluate your situation at no cost to you. Because the FDCPA requires the collector to pay attorney's fees if you prevail, pursuing your rights costs you nothing out of pocket in most cases.