Debt Collectors and Your Rights Under Federal Law

Who these rules cover

The federal Fair Debt Collection Practices Act (FDCPA), and Regulation F, the CFPB rule that spells it out, apply to debt collectors: collection agencies, debt buyers and lawyers who regularly collect consumer debts for others. They generally don't cover the original lender collecting its own debt, though many states have collection laws that do. The rules apply to personal, family and household debts such as credit cards, personal loans, car loans, medical bills and mortgages, not business debts.

A collector may contact you, ask you to pay and, in many cases, sue. What it can't do is harass you, lie to you, or keep collecting after a timely dispute without first verifying the debt.

The validation notice and your 30 days

A collector must give you validation information in its first communication or within five days after it. That notice must say it's from a debt collector and include the collector's contact details, the name of the creditor, the account number if there is one, an itemized current balance, how to respond, and an end date for a 30-day period to dispute the debt. The period runs until 30 days after you receive, or are assumed to receive, the notice.

If you dispute the debt in writing within that window, or ask in writing for the name of the original creditor, the collector must stop collecting the disputed amount until it sends you verification, such as a copy of a statement or a judgment. Disputing late isn't pointless, but it gives you fewer protections, so mark the date on your calendar.

1. 1 Write a short letter or use the dispute form that often comes with the notice. Include your name, the collector's reference number and a clear statement that you dispute the debt.
2. 2 Say why, if you know: not your debt, wrong amount, already paid, or discharged in bankruptcy. Ask for verification and the original creditor's name and address.
3. 3 Don't admit the debt or promise to pay in the letter, especially for an old debt.
4. 4 Send it so you can prove it: certified mail with a return receipt, or the collector's online portal with a saved confirmation.
5. 5 Keep copies of everything you send and receive, and a log of calls with dates and names.

When and how they can contact you

• Time of day: calls before 8 a.m. or after 9 p.m. your local time are presumed inconvenient. You can also name other times or places that don't work for you.
• Call frequency: a collector is presumed to violate the law if it calls you about a particular debt more than seven times within seven days, or within seven days after having a phone conversation with you about it.
• At work: it may not contact you at work if it knows or has reason to know your employer prohibits it. Tell the collector.
• Email and texts: every electronic message must include a clear, simple way to opt out of further messages to that address or number.
• Social media: a collector may not contact you about a debt in a way the public can see, and private messages must let you opt out.
• Other people: it generally can't discuss your debt with your family, employer or neighbors without your consent.

You can also tell a collector in writing to stop contacting you entirely. After that, it may contact you only to confirm it is stopping or to tell you about a specific step, such as a lawsuit. Stopping contact doesn't erase the debt.

What collectors may never do

• Threaten violence, use obscene language or call repeatedly to annoy you.
• Pretend to be a lawyer or a government official, or claim you'll be arrested.
• Misstate the amount you owe or the legal status of the debt.
• Threaten action it can't legally take or doesn't intend to take.
• Report the debt to a credit bureau before it has communicated with you about it, by speaking with you or by mailing or messaging you and waiting a reasonable time to see if the notice bounced.

If you're sued, or a call seems fake

If you're served with a lawsuit, respond by the deadline on the papers, even if you think the debt isn't yours or is too old. If you don't show up, the court can enter a default judgment, which can lead to wage or bank garnishment under your state's rules. A legal aid office or consumer attorney can help.

Real collectors tell you who they are, give a mailing address and phone number, and send validation information. A caller who refuses to, threatens arrest or presses for your bank details right away may be a scammer; see how to spot loan and debt scams. If a collector reports a debt to your credit file that you dispute, Funditia explains how to dispute a credit report error.

How to complain and what you can recover

1. 1 File with the CFPB at consumerfinance.gov/complaint. It forwards your complaint to the company, and most companies respond within 15 days.
2. 2 Report to your state attorney general and, if your state licenses collectors, the state regulator. You can also report to the FTC at ReportFraud.ftc.gov.
3. 3 Talk to a consumer attorney about a lawsuit. Under the FDCPA you can sue within one year of a violation for your actual damages plus up to $1,000 in additional damages.

Common questions