The FDCPA protects consumers from abusive debt collection practices, such as foul language and misleading communication.
Sean Pyles
Senior Writer | Personal finance, debt
Sean Pyles leads podcasting at NerdWallet as the producer and host of NerdWallet's "Smart Money" podcast. On "Smart Money," Sean talks with Nerds across the NerdWallet Content team to answer listeners' personal finance questions. With a focus on thoughtful and actionable money advice, Sean provides real-world guidance that can help consumers better their financial lives. Beyond answering listeners' money questions on "Smart Money," Sean also interviews guests outside of NerdWallet and produces special segments to explore topics like the racial wealth gap, how to start investing and the history of student loans.
Before Sean lead podcasting at NerdWallet, he covered topics related to consumer debt. His work has appeared in USA Today, The New York Times and elsewhere. When he's not writing about personal finance, Sean can be found digging around his garden, going for runs and taking his dog for long walks. He is based in Ocean Shores, Washington.
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Lead Assigning Editor | Personal finance, credit scoring, debt and money management
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MORE LIKE THIS Making Money Paying Off Debt Paying Your Bills Personal FinanceTable of Contents
MORE LIKE THIS Making Money Paying Off Debt Paying Your Bills Personal FinanceIf you feel helpless because debt collectors are calling for payment, you have more power than you realize. You just need to be aware of your rights and how to use them.
The Fair Debt Collection Practices Act is a federal law that governs practices by third-party debt collectors — those who buy a delinquent debt from an original creditor, like a credit card company. The debt collection law gives consumers crucial protections against predatory practices , such as calling you late at night, using harassing language and pursuing you for a debt you don’t owe. Exercising these rights can help you gain control of your dealings with debt collectors.
Your state may offer additional consumer protections, so you may want to contact a local consumer legal office for advice.
Here are five ways the Fair Debt Collection Practices Act protects you — and what to do if your rights are violated:
You can limit when and how third-party debt collectors contact you. Collectors can call, email, text, send private messages on social media and mail you letters. They’re not allowed to contact you at any inconvenient time or place and can't tell third parties about your debt.
The FDCPA provides that debt collectors:
Can’t contact you before 8 a.m. or after 9 p.m. (this applies to calls and electronic channels like social media).
Can't call you more than seven times per week per account. Must explain in email, text or social media messages how you can restrict or stop communication. Must disclose they're a collector before sending a friend request on social media. Can’t contact you at work once you ask them not to. Must communicate through your attorney if you're represented by one. Can’t communicate about your debt with third parties, such as your employer, neighbors and family. Must cease contact entirely if you request it.Strategy: For now, it’s not enough to state over the phone how you want the debt collector to communicate with you. The Fair Debt Collection Practices Act states you must make the request in writing for it to be enforceable. The Consumer Financial Protection Bureau has sample letters that can help you structure your request.
A debt isn’t gone just because you ask the collector to cease contact. The collector can still seek payment through a lawsuit, which can lead to wage garnishment .
The Fair Debt Collection Practices Act prohibits debt collectors from using any harassing or abusive practices in an attempt to collect the debt.
Along with other restrictions, debt collectors cannot:
Use profane language. Threaten or use violence.Call you repeatedly to annoy or harass. This is defined as more than once a day about a specific debt, or within a week of having a conversation with you about a debt.
Call you to collect payment without identifying themselves as debt collectors. List your debt for sale to the public.Strategy: Overly aggressive or abusive practices might be a sign that you’re dealing with a scam debt collector . Taking the time to figure out if you’re in contact with a scammer can save you from the expensive mistake of paying a debt you don’t owe.
Keep a log of any abusive collection practices. Read below about how to file a complaint about an FDCPA violation.
The Fair Debt Collection Practices Act states that debt collectors cannot use any false, deceptive or misleading representation to collect the debt.
Along with other restrictions, debt collectors cannot misrepresent:
The amount of the debt. Whether it’s past the statute of limitations . Legal repercussions for not paying the debt, including making false threats of arrest . Themselves as another company, professional or authority figureStrategy: Be aware that collectors must provide detailed disclosures about the debt when making first contact — including your rights and how your can respond to the collector. This information must be given before the collector reports the debt to a credit reporting agency.
However, debt collectors can still ask consumers for payment on debt that's past the statute of limitations, a sketchy practice that can result in a consumer inadvertently reviving a so-called " zombie debt " and making themselves vulnerable to a lawsuit.
If you're having trouble getting clarity from the collector, consider reaching out to local legal aid for help.
In addition to requirements for truthful communication, FDCPA curbs debt collectors’ behavior. Along with other restrictions, they cannot:
Solicit postdated checks for payment to use as a threat or for the purposes of instituting criminal prosecution.
Deposit or threaten to deposit a postdated check before your intended payment date. Take or threaten to take property if it’s not allowed. Collect more than you owe on a debt, which may include fees and interest.Strategy: Never postdate a check to a debt collector. Despite promises, the collector might deposit the check before the date specified. If a collector threatens to take property, don’t hesitate to file a complaint. And be sure to know exactly how much you owe by validating the debt before you make a payment.
Debt collectors may attempt to collect the debt in person. Be aware, however, that any practices that are intimidating or threatening are a violation of the FDCPA.
Under the FDCPA, debt collectors must prove that you owe the debt they’re attempting to collect. This starts with the validation letter , and if you request a verification letter to get more information, they must provide that as well.
Collectors must send the validation letter within five days of first contact. It should contain:
How much you owe. The name of the creditor seeking payment. A statement that the collector assumes the debt is valid unless you dispute it within 30 days.A statement that if you dispute the debt or request more information on it in writing within 30 days, the debt collector will verify the debt by mail.
A statement that if you request information about the original creditor within 30 days of first contact, the collector must provide such information.
Strategy: Don’t act on any debt in collections before you've gathered as much information as possible and made sure it's really your debt.
Get more financial clarity with NerdWallet Monitor your credit, track your spending and see all of your finances together in a single place.Violations of the Fair Debt Collections Practices Act are the largest source of complaints to the CFPB, with more than 88,000 in 2016.
You have two main options if you think your rights were violated:
File a complaint. Sue the collection agency.The CFPB makes it easy to file a complaint . The bureau follows up on each and works to resolve the matter.
You can also file a lawsuit against the debt collection agency. Many law firms offer free consultations, and if you win, the debt collection firm will generally have to pay any legal fees associated with the suit.
Strategy: Keep records of all correspondence between you and the debt collector to help substantiate your claim of violations.
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