What is the Fair Debt Collection Practices Act (FDCPA) and what are your rights in debt collection?

The information provided herein is intended for general informational purposes only and should not be construed as legal advice. For personalized legal advice, consult with a qualified attorney licensed to practice law in your jurisdiction.

The Fair Debt Collection Practices Act (FDCPA) is a law meant to protect consumers and give them a remedy when their rights are violated. We’ll explore the FDCPA and see how it can make your life easier when debt collectors call. 

Breaking down the FDCPA

The FDCPA was approved on Sept. 20, 1977, as an amendment to an earlier consumer protection law. It is designed to prevent abusive debt-collection practices and provide consumers with the tools to protect their rights. 

Here's a quick rundown of the types of debts covered by the FDCPA:

• Credit card debt

• Medical debt

• Student loans

• Car loans

• Mortgage debt

• Other household debts (like personal loans)

The FDCPA does not cover business debts or first-party collectors. 

When debt collectors can contact you

Even if you're working hard to streamline your debt, there are times when a debt collector is legally allowed to contact you. They can call you, reach out via private message on social media, email you, send letters, or text you. However, that's only if you allow it. We’ll walk you through when they must stop. 

Who else debt collectors can contact

A debt collector cannot discuss your debt with anyone except you or your spouse, although they can contact other people to find out your address, phone number, or where you work. Generally, they can only contact them once. Debt collectors are not allowed to tell anyone they contact that you owe a debt. 

When debt collectors cannot legally contact you

Debt collectors are not allowed to contact you any time they want, regardless of what they tell you. The law puts strict limits on how and when you can be contacted. For example:

• A debt collector cannot contact you before 8 a.m. or after 9 p.m of your local time zone, unless you have given them permission.

• A debt collector cannot contact you at work if you let them know you're not allowed to receive calls at work.

• A debt collector cannot contact you by email or text message if you ask them to stop.

• A debt collector cannot call you more than seven times within a seven-day period. Also, they can’t call you again within seven days after speaking with you by phone about a specific debt.

• A debt collector cannot privately message you through social media if you ask them to stop.

What information must a debt collector provide? 

Debt collectors are required to provide you with specific information about your debt, known as validation information. Generally, this information is provided via a written notice, sent either by snail mail or electronically. Validation information must be provided within five days of their first communication, offering you time to determine if the debt is yours. When a debt collector contacts you, the first step is to send a debt validation letter asking for these details.

Here's the information debt collectors are required to share:

• A statement that the communication is from a debt collector

• Your name and mailing address

• The debt collector's full name and mailing address

• The name of the creditor (or creditors) they believe you owe money to

• The account number associated with the debt (if there is an account number)

• How much money you owe, including interest, fees, payments, and credits for any payments you've made since a particular date

• The steps you should take if you don't believe it's your debt

• Your collection rights. This includes your right to receive information about the original creditor if you ask for it within 30 days of receiving information from the debt collector.

• An end date for the 30-day period during which you can dispute the debt

How to stop a debt collector from contacting you

The collector should have given you their office address during the debt validation stage. To prevent future contact, write a letter to the collection company asking it to cease contact. Keep a copy for yourself. Send the letter by certified mail and pay for a return receipt to record when the collection company received it. 

Once the collection company receives your letter, it can only reach out to confirm that it will stop contacting you in the future or to let you know it plans to take a specific action, like filing a lawsuit. If you have an attorney representing you, tell the collector. From that point forward, the collection company must communicate with your attorney and not you. The only exception to this is if the attorney fails to respond to the collector's communications within a reasonable time. 

Keep in mind that telling the debt collector to stop contacting you means you won’t be in communication with them any more about the debt. You could miss important information, and the debt collector could be forced to file a lawsuit against you. They can’t work out a plan with you if they’re not allowed to contact you. If it’s a valid debt, you might want to leave the lines of communication open while you figure out how you’re going to handle it.

Warning: Some debt collection scammers troll those in debt, hoping to gather enough personal and financial information to take over their identity. No matter how pleasant a debt collector may seem, do not share any personal or financial information with them until you have verified that they're calling about a legitimate debt. 

What to do if you don't think the debt is yours

Once the debt collector has told you everything they're legally responsible for telling you about a debt, it should be clear whether it’s yours or not. If you don't believe the debt is yours (or that you don't owe as much as they say), send a dispute letter to the address provided by the collector. Let the collection company know you disagree with its records.

The dispute letter must be sent within 30 days. Use certified mail and request a return receipt to ensure the collection company received it. Keep a copy for your records. Once the collection company receives your dispute letter, they must halt collection efforts until they research the debt and provide you with the results in writing.

Pro tip: If you fail to dispute the debt within 30 days of receiving validation information, the debt collection company will assume the debt is legitimate. 

What debt collectors absolutely cannot do

The list of things debt collectors cannot do is based on tactics collectors have used in the past. Knowing your rights is the first step toward protecting yourself from harassment and abuse. 

Debt collectors are not legally allowed to:

• Threaten to hurt you

• Use obscene or profane language

• Call you more than seven times in a seven-day period or within seven days after speaking with you by phone about a specific debt

• Tell you that you owe a different amount than you actually owe

• Pretend to be an attorney or government representative

• Say you'll be arrested, or claim they'll take legal action against you (unless it's true that they plan to take legal action)

• Try to collect interest, fees, or other charges in addition to the amount you owe, unless the original contract says they can

• Deposit a post-dated check early

• Publicly reveal your debts. This includes sending postcards or putting information on envelopes to make it clear they're attempting to collect a debt.

What about old debts?

Debt does not go away, no matter how old it is. What does go away is the debt collector’s window for suing you. This period of time is called the statute of limitations, and it normally starts when you miss a payment on a debt. Once the statute of limitations runs out, your unpaid debt is considered time-barred, and legal action cannot be brought against you. If they do, you can ask the court to throw out the case.

The statute of limitations varies depending on the type of debt and the state where you live. It could be anywhere from 2 to 15 years. You could accidentally restart the statute of limitations if you make a payment, agree to pay, work out a settlement agreement, or make a new charge on the same account. 

Lawsuits and garnishments

Lawsuits: If you receive notification that a lawsuit has been filed against you, submit your answer by the date indicated in the court papers. You can respond personally or through an attorney. Ignoring the lawsuit could strip you of some of your rights. 

Garnishment: To take money from your paycheck or bank account, a debt collector must first sue you and win. Then they have to get a court order called a garnishment. A garnishment says the debt collector can take money from your paycheck or bank account to repay debt. Again, do not ignore a lawsuit notification. Ignoring a notification can cause you to lose the right to fight a court order. 

What about federal benefits? 

Federal benefits are normally exempt from court-ordered garnishments. In addition, states have their own laws about which state benefits can be garnished. Here's a sample of federal benefits that debt collectors typically can’t touch:

• Social Security benefits

• Supplemental Security Income benefits

• Federal student aid

• Veterans benefits

• Federal retirement pay

• Military annuities and survivors' benefits

• Railroad retirement benefits

• Benefits from the Office of Personnel Management

• Federal emergency disaster assistance

What to do if a debt collector breaks the rules

If a debt collector does something illegal, you can report them to:

• Your state Attorney General's office

• The Federal Trade Commission

• The Consumer Financial Protection Bureau

You can also sue a debt collector in state or federal court. To do so, file your lawsuit within one year of when the collector broke the law. If you lost wages or had medical bills because of the things the debt collector did, you can sue for those damages. If you can't prove damages, the judge may still award you up to $1,000, plus reimburse you for attorney fees and court costs. It's important to remember that even if a court finds a debt collector has violated the FDCPA, you may still owe the original debt. 

Gone are the days when debt collectors can say or do anything they want to squeeze money from you. Today, the ball is in your court, and protections are in place to ensure you're treated fairly.