No doubt receiving a call from a debt collector can be alarming and scary at times.
But there are federal as well as state laws that govern what a debt collector can and cannot do. The Fair Debt Collection Practices Act (FDCPA) is the main federal law that protects consumers from abusive, unfair, or deceptive debt collection practices.
It outlines specific rules that debt collectors must follow. Here are three important actions debt collectors are prohibited from taking:
Top 3 Actions Debt Collectors Cannot Take
1. Harassment or Abuse
- Threats of Violence or Harm: Debt collectors cannot threaten you with physical harm, damage to your property, or any other form of violence.
- Obscene or Profane Language: Debt collectors cannot use offensive language or insults.
- Repeated Phone Calls: Debt collectors cannot call you excessively or at unreasonable hours (generally before 8 a.m. or after 9 p.m.) with the intent to annoy or harass you.
2. False or Misleading Statements
- Misrepresenting the Debt: Debt collectors cannot lie about the amount you owe, the consequences of not paying, or their legal authority.
- Impersonating Officials: Debt collectors cannot pretend to be law enforcement officers, attorneys, or government officials.
- False Threats: Debt collectors cannot threaten actions they are not legally allowed to take, such as suing you for a time-barred debt or having you arrested.
3. Unfair or Unconscionable Practices
- Collecting Unauthorized Fees: Debt collectors cannot add unauthorized fees or charges to your debt.
- Contacting You After You’ve Retained an Attorney: If you have an attorney representing you, they must communicate with your attorney, not you directly.
- Ignoring a Written Cease and Desist Request: If you send a written request to stop contact, they must cease communication except to inform you of specific actions they may take (like filing a lawsuit).
While these are just a few of the most important rights consumers have under the FDCPA, it’s important to know all of your rights and be ready to exercise them!
What To Do When FDCPA Rights Are Violated
- Start by keeping records and document all interactions with the collector, including dates, times, and the content of conversations.
- Consider recording calls if you reside in a state that allows you to legally record phone conversations with debt collectors without their consent. This can be valuable evidence. Check your state laws to ensure you comply.
- Send a Cease and Desist letter if you want the collector to stop contacting you via telephone. The letter should be sent via certified mail with a return receipt requested. State that you are requesting they cease communication and that you will only communicate by mail or through an attorney.
- Exercise your right to request debt validation and confirm the accuracy of the information from debt collectors.
- Report the violation to the Consumer Financial Protection Bureau (CFPB). This can be accomplished by submitting a complaint online at www.consumerfinance.gov/complaint or by phone at (855) 411-CFPB (2372).
- If you feel fraud is involved file a complaint with the Federal Trade Commission (FTC) online at reportfraud.ftc.gov or by phone at (877) FTC-HELP.
- Contact your state attorney general’s office to file a complaint also. You can usually find their contact information on your state’s official website.
- Consider taking legal action and if you do, consult with an attorney that can help you understand your rights and options, including the possibility of suing the debt collector for damages.
- Keep in mind that statute of limitations generally gives you one year from the date of the violation to file a lawsuit under the FDCPA.
- Use the violation as leverage to negotiate a favorable settlement that includes paying pennies on the dollar as well as a deletion if they have reported the debt on your credit reports.
More Actions Debt Collectors Are Prohibited From Taking
- Make calls to you before 8 a.m. or after 9 p.m. local time
- Tell anyone you owe money
- Use harassment or abuse to force payment
- Use obscene language.
- Deceive you about how much you really owe
- Trick you into paying by using such tactics as claiming you will be arrested
- Contact you at your workplace if you’ve told them that your employers doesn’t permit such calls