What can debt collectors legally do?
Debt · 3 minute read
Third-party collectors are regulated by federal law. They can contact you and sue you, but there are limits on how, when and what they can say.
Who the rules cover
The federal Fair Debt Collection Practices Act applies mainly to third-party collectors and debt buyers collecting consumer debts, rather than to the original creditor collecting its own account.
Many states have their own laws that go further and sometimes cover original creditors too. You can read the federal rules and file complaints at the Consumer Financial Protection Bureau, consumerfinance.gov.
What they can do
Contact you about the debt. Report it to credit bureaus. Sue you within the applicable time limit and, if they win a judgment, pursue collection methods the court allows, which can include wage garnishment in many states.
Being contacted is not harassment by itself. The law regulates the manner, not the existence, of collection.
What they cannot do
Threaten violence, use obscene language, or publish your name as someone who owes a debt. Call repeatedly to annoy or harass. Call at unusual times — generally before 8am or after 9pm in your time zone — unless you agree.
Lie about the amount, pretend to be an attorney or a government official, threaten arrest for an ordinary consumer debt, or threaten action they cannot legally take or do not intend to take.
Your right to verification
Shortly after first contact a collector must tell you the amount and the creditor, and explain your right to dispute. If you dispute in writing within the stated period, collection must pause until they send verification.
This is the single most useful right in the whole statute, and it is exercised in writing.
Debts that are not yours or are too old
Collectors buy old portfolios with imperfect records. Wrong person, wrong amount and already-paid debts are common. So are debts past the statute of limitations for a lawsuit, which varies by state and type of debt.
Be careful: in some states making a payment or acknowledging an old debt in writing can restart the clock. Get information before you offer anything.
If you are actually sued
Never ignore a lawsuit. A default judgment is the usual outcome of doing nothing and it is far harder to undo than responding was.
Keep every letter and log every call with date and time. If a collector broke the rules, that record is your case. Legal aid and consumer attorneys handle these regularly, and many legal plans include letters and consultation on collection matters.
Quick questions
- Can a debt collector call me at work?
- Not if they know your employer prohibits such calls and you have told them to stop contacting you there. A written instruction is the clearest way to do that.
- Can I be arrested for not paying a debt?
- Not for an ordinary consumer debt. A collector threatening arrest for one is making a threat the law does not support.
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This page is general education, not legal advice, and reading it does not create an attorney-client relationship. Laws differ by state and every situation is different. For advice about your own situation, speak with a licensed attorney.
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