What Can Collectors Do?

What Debt Collectors Can And Can’t Do

Under the federal Fair Debt Collection Practices Act, which is enforced by the Federal Trade Commission (FTC), actions and behavior of debt collectors and debt collection agencies are regulated.

If a debt collector violate rules of the FDCPA in attempting to collect a debt from you, you can report them to the FTC. You should also consult with an attorney to see whether the violation warrants taking legal action against them.

Once you’ve heard from a debt collector, they must send you a written validation notice telling you how much money you owe within 5 days after first contact. This notice also must include the name of the creditor to whom you originally owed the money, and how to proceed if you believe you do not owe them money.

If you have an attorney representing you, they must contact the attorney, and not you. If you don’t have an attorney, they may contact other people, but only to find out your address, your home phone number, and where you work. Other than to obtain this kind of information, a debt collector generally is not permitted to discuss your debt with anyone else, other than a spouse. They are usually prohibited from contacting third parties more than once.

If a debt collector is handling more than one debt in your name, they must apply a payment you make towards them on the account you specify. And very importantly, they may not apply a payment to a debt you don’t think you owe if there is an account you have disputed.

If you send the debt collector a written notice stating that you don’t owe the the debt, or you ask for verification of the debt, they must stop contacting you. You need to send this notice within 30 days after you receive the validation notice. However, they can begin contact again if they send you written verification of the debt, such as a copy of a bill, and have proof of the debt.  Following are the rules that the FDCPA, or Fair Debt Collection Practices Act mandates:

1. Debt collectors may not contact you at inconvenient times or places, such as before 8:00 a.m. or after 9:00 p.m. unless you have agreed to it.

2. Debt collectors cannot contact you at work if they’re told, either orally or in writing, you that you cannot accept calls there.

3. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. Specifically, they may not:

• use threats of violence or harm
• publish a list of names of those that don’t pay debt (other than to the credit reporting companies);
• use obscene or profane language
• repeatedly use the phone to annoy someone

4. Debt collectors may not give false information to you. Specifically, they may not falsely claim that:

• they are attorneys or government representatives
• claim that you have committed a crime
• represent that they operate or work for a credit reporting company
• misrepresent the amount you owe
• indicate that papers they send you are legal forms if they are not
• indicate that papers they send to you are not legal forms if they are

5. Debt collectors are prohibited from telling you that:

• you will be arrested if you don’t pay your debt
• they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so
• legal action will be taken against you, if doing so would be illegal or if they don’t intend to take action

6. Debt collectors are not permitted to:

• give false credit information about you to anyone, including a credit reporting company
• send you anything that looks like an official document from a court or government agency if it is not
• use a false company name

7. Debt collectors are not allowed to engage in unfair practices in order to collect on a debt such as:

• they may not try to collect interest, fees, or other charges on top of the amount you owe unless the contract that created your debt or state law permits this
• they may not deposit a post-dated check early
• they cannot take or threaten to take your property unless it can be done legally
• they cannot contact you by postcard