All American consumers have protections against debt collectors under the Fair Collections Practices Act (FCPA). This federal law dictates how often debt collectors can contact you, how they can contact you, and what they can say.
The debt collection industry can be an aggressive field with individuals motivated to do whatever it takes to get their money. Knowing about your rights is critical so you can protect yourself if they’re violated. Keep reading to learn about your legal protections against debt collectors and what you can do if they’re breached.
A Brief History of Debt Collection Rights
It can be valuable to know why debt collection rights are in place. Interestingly, there’s a long history of debt collection in the US. In the seventeenth and eighteenth centuries, one of the primary reasons for immigration from England to the US was Englishmen looking to escape “the harsh enforcements of English bankruptcy laws.”
Fast-forward to the 1970s, and the debt collection industry was thriving. However, the tactics debt collectors used to get their funds were often violent, rude, and threatening. It was becoming such a problem that by the mid-1970s, several states had amended their laws to protect consumers.
Soon, Congressman Frank Annunzio of Chicago recognized the need for a federal mandate. He introduced a protection from abusive debt collection bill in 1975. By 1978, the bill (now called The Fair Debt Collection Practices Act) had been signed by President Carter and became law.
The Fair Debt Collection Practices Act (FDCPA)
Here’s a quick rundown on the basics of the FDCPA:
- The FDCPA “prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from you.”
- This protection only applies to consumer debts, not business debts.
- Generally speaking, the FDCPA only applies to debt that’s been sold to a debt collector. It doesn’t protect consumers from the original lender.
- Specifically, the FDCPA applies to debt collection agencies, debt buyers, and lawyers.
- Debt collectors are legally required to follow the rules and regulations outlined in the FDCPA.
Legal Protections Against Debt Collectors:
Here are your federally protected rights from debt collection agencies:
Communication Time
Debt collectors must avoid contacting you during times and places they believe or know to be inconvenient for you. This means they can only contact you at reasonable hours, defined as between 8:00 am and 9:00 pm. If they know that the allowable hours are inconvenient for you, such as you being a night shift worker who sleeps during the day, they cannot contact you during that time.
Place
Technically, debt collectors can contact you at your workplace. However, the exception is if they know you cannot receive personal calls at work. If you inform them once that they cannot contact you at work, they must immediately stop.
Social Media Limitations
A debt collector can contact you privately through your social media profiles. However, if you request they stop contacting you via social media, they must stop. Additionally, they cannot post publicly about your debt on social media.
Electronic Communications
Debt collectors can contact you through many types of electronic communication, including telephone, email, and text. However, all of these forms must offer up an easy way to opt out of further communications.
Harassment
Debt collectors aren’t allowed to harass you about your debt in any way. This includes:
- Constantly calling just to allow the phone to ring or to annoy.
- Publicly posting or sharing your debt with others to shame you. (Debt collectors can only discuss your debt with your spouse or attorney.)
- Publishing your name on any sort of public “bad debt” list.
- Threatening an arrest or taking legal action that’s not actually possible.
- Use any abusive or profane language when communicating with you.
- Threatening to report false information to the credit bureaus to negatively impact your credit report.
- Debt collectors can only contact your friends and family to find a way to contact you. They cannot speak about your debt to anyone except your spouse.
Attorney Communications
You can ask that a debt collector stop communicating with you and only speak with your attorney. This request needs to be a formal written notice.
Misrepresentation
Debt collectors cannot lie or misrepresent any facts to you. This includes lying about the debt owed, the consequences of not paying, or pretending to be an attorney or law enforcement officer.
Due Diligence
You can ask your debt collector to provide proof that the debt belongs to you. The debt collector cannot contact you again until the debt has been verified.
Debt Collector Required Conduct:
In addition to all the prohibitions set against debt collectors, there are also specific requirements on what they have to do. The Fair Debt Collection Practices Act requires debt collectors to do the following:
- In every communication, they must identify themselves as a debt collector.
- In the initial communication, explain that everything discussed in this and future conversations can be used to collect the outstanding debts.
- Give the details of the original creditor so you can know what debt is being collected.
- Inform you that you have the right to dispute the debt.
- Provide verification of the debt within 30 days of receiving a request to do so.
- Debt collectors have the ability to sue you for the debt, but only in the state where you currently live or signed the original contract.
An estimated one in five Americans have a debt in collections. Coming across hard times, making a few mistakes, and having your finances get away from you can happen to anyone.
If a debt collection agency does come after you for your debt, you should know what they can and cannot do. And if a debt collector behaves aggressively or illegally, you can submit a complaint to the CFPB. You have protections and have the right to be treated respectfully.
Even when acting within legal limits, debt collectors can be very persistent. Ignoring them isn’t ideal, as they can eventually file a lawsuit against you. Do your research into how to communicate with a debt collection agency so you can formulate a plan on what to do next. Your unpaid debts don’t have to follow you around any longer.
You might also be interested in: The Psychological Effects of Debt and How to Cope
