Debt collection is heavily regulated in the United States by the Fair Debt Collection Practices Act. Collectors routinely rely on people not knowing that, because someone who does not know their rights is easier to pressure.
These rights apply to third-party collectors. Original creditors have somewhat different obligations, and state law may add protections.
Your single most important right
You may demand debt validation. Within five days of first contact a collector must send written notice of the amount, the creditor's name, and your right to dispute. If you dispute in writing within thirty days, the collector must stop collection activity until they send you verification.
Do this every time, in writing, before you pay anything. Debts get sold repeatedly, records get garbled, and collectors sometimes pursue the wrong person, the wrong amount, or a debt that is not legally collectable any more.
Never acknowledge a debt or make a partial payment before validating it. In some states, doing so can restart the statute of limitations on a debt that had already expired, converting an uncollectable debt into a fully collectable one. This is a known tactic.
What collectors cannot do
- Call before 8am or after 9pm in your local time.
- Contact you at work after you have told them not to.
- Threaten arrest or criminal charges for an ordinary consumer debt. You are not jailed for debt.
- Discuss your debt with family, friends or your employer.
- Misrepresent who they are, the amount owed, or the legal consequences.
- Use profanity, threats or repeated calls intended to harass.
How to make contact stop
Send a written request to cease contact. Send it by a method that produces proof of delivery. After receiving it, a collector may only contact you to confirm they are stopping or to say they intend to take a specific legal action.
Note that stopping contact does not eliminate the debt, and does not prevent a lawsuit. It stops the calls.
If they violate the rules
Keep records: dates, times, names, what was said. Complaints can be filed with the Consumer Financial Protection Bureau and your state attorney general. The FDCPA also allows private lawsuits, and violations can entitle you to damages.
The short version
- Demand written validation before paying or acknowledging anything.
- Never make a partial payment on an old debt before checking the statute of limitations.
- Calls outside 8am to 9pm, arrest threats and workplace contact after notice are illegal.
- Keep a written log. Complaints go to the CFPB and your state attorney general.
Common questions
Can I go to jail for unpaid debt?
No. Ordinary consumer debt is a civil matter and threatening arrest over it is a federal violation. Jail can result from ignoring a court order in a separate proceeding, which is a different thing.
Should I pay a debt collector?
Only after validating the debt in writing and confirming it is yours, the amount is correct, and it is still within the statute of limitations. Get any settlement in writing before paying.
Can debt collectors call my employer?
They may contact your workplace to locate you, but must stop once you tell them not to. They cannot discuss your debt with your employer or colleagues.