What Can Debt Collectors Legally Do?

The Fair Debt Collection Practices Act (FDCPA) and the CFPB's Regulation F set rules for third-party debt collectors, including collection agencies, debt buyers and collection law firms. Original creditors are covered by some state laws but generally not the FDCPA.

What collectors must do

• Validation information: within five days of first contact, give you written information about the debt, the amount, the creditor and your right to dispute (15 U.S.C. 1692g).
• Stop collecting if you dispute in writing within the validation period, until they send verification (15 U.S.C. 1692g(b)).

What collectors cannot do

• Call at inconvenient times, generally before 8 a.m. or after 9 p.m. your time (15 U.S.C. 1692c)
• Call you at work if they know your employer does not allow it
• Contact you directly if they know you have a lawyer for the debt
• Discuss your debt with others, except limited contacts to find you
• Use threats of violence, obscene language, or repeated calls meant to harass
• Place more than seven calls within seven days about a debt, or call within seven days after a phone conversation, which Regulation F presumes is harassment (12 CFR 1006.14)
• Lie about the amount, pretend to be a lawyer or government official, or threaten arrest
• Threaten action they cannot or do not intend to take
• Sue or threaten to sue on time-barred debts

Stopping contact

You can tell a collector in writing to stop contacting you; after that, they may contact you only to confirm they are stopping or to notify you of specific actions, like a lawsuit (15 U.S.C. 1692c(c)). Stopping contact does not erase the debt.

Electronic communications

Collectors may contact you by email or text under certain conditions, but must offer an easy way to opt out.

If a collector breaks the rules

• Keep call logs, letters, voicemails and screenshots.
• Report to the CFPB, the FTC and your state attorney general.
• Sue: you can recover actual damages, up to $1,000 in statutory damages, and attorney fees (15 U.S.C. 1692k).

Check the debt

Make sure the debt is yours and not too old to sue on. See credit card debt after 7 years. If you were sued, see what to do if a debt collector sues you.

Many consumer and bankruptcy lawyers take FDCPA cases at no upfront cost because the law shifts fees.

Sources

1. Federal Trade Commission: Debt collection FAQs
2. Cornell Law School LII: 15 U.S.C. 1692c, Communication in connection with debt collection
3. Cornell Law School LII: 15 U.S.C. 1692g, Validation of debts
4. Cornell Law School LII: 12 CFR 1006.14, Harassing, oppressive, or abusive conduct