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Money habits & rights

Your rights when a debt collector calls

7 min read · General education, not legal advice

An open notebook headed "Notes" with a fountain pen resting on it and a pair of glasses behind

A call or letter from a debt collector can be stressful, especially if the debt is unfamiliar or the amount looks wrong. Federal law sets rules for how collectors may behave and gives consumers specific rights, including the right to ask for verification of a debt. This article gives a general overview of those rules under the Fair Debt Collection Practices Act (FDCPA) and the information federal agencies publish about it. It is general education, not legal advice; state laws can add protections, and a lawyer can explain how the rules apply to a particular situation.

Who the law covers

The FDCPA (15 U.S.C. §1692 and following sections) applies to debt collectors collecting consumer debts. The law defines a debt as an obligation to pay money arising from a transaction that was primarily for personal, family or household purposes, so business debts are not covered. It defines a debt collector as a business whose principal purpose is collecting debts, or a person who regularly collects debts owed to someone else. Collection agencies that collect debts for other companies are the familiar example. A creditor's own employees collecting in the creditor's name generally do not, so the original lender collecting its own account is usually outside the FDCPA, though other laws may apply.

The Federal Trade Commission (FTC) summarizes the core rule: the FDCPA makes it illegal for debt collectors to use abusive, unfair or deceptive practices when they collect debts.

The validation notice

Early in the process, a collector must tell the consumer about the debt. Under §1692g, within five days of first contacting a consumer, a collector must send a written notice, unless the information was in the first communication. The Consumer Financial Protection Bureau (CFPB) explains that this validation information can be sent by mail or electronically, and generally must include:

  • A statement that the communication is from a debt collector.
  • The name and mailing information of the collector and the consumer.
  • The name of the creditor the debt is owed to, and the account number, if any.
  • An itemization of the current amount of the debt, showing interest, fees, payments and credits since a particular date.
  • The current amount of the debt.
  • Information on how to reply, including how to dispute the debt.
  • An end date for a 30-day period during which the consumer can dispute the debt.

The validation notice is the document many people keep close at hand, because it shows who claims the debt, how the amount was calculated and the deadline that matters most.

Disputing a debt in writing

Section 1692g also creates the right to dispute. If a consumer notifies the collector in writing within the 30-day period that the debt, or part of it, is disputed, the collector must stop collecting the debt, or the disputed portion, until it obtains verification of the debt and mails it to the consumer. The FTC puts it this way: once the collector receives a dispute letter sent within 30 days, it must stop trying to collect the debt until it sends written verification.

A consumer can also ask, in writing within the same period, for the name and address of the original creditor if it is different from the current one, and the collector must pause collection until it provides that information.

Timing matters. The CFPB notes that failing to request verification in writing, or within the 30-day period, can affect a consumer's ability to assert these rights, and the FTC says that if a debt isn't disputed within 30 days the collector will assume it is valid. At the same time, the statute says that not disputing a debt cannot be treated by a court as an admission that the consumer owes it.

People commonly send disputes by a method that shows when the collector received them and keep a copy of what they sent, so there is a record of the date.

When and where a collector may call

Section 1692c limits when and where collectors can communicate with a consumer:

  • Hours. Unless the consumer agrees otherwise, a collector must assume that times before 8 a.m. and after 9 p.m., local time, are inconvenient. Calls outside that window are generally not allowed.
  • Inconvenient times and places. A collector may not contact a consumer at a time or place it knows, or should know, is inconvenient.
  • Work. A collector may not contact a consumer at work if it knows or has reason to know the employer does not allow such contact. The FTC says collectors can't call at work if the consumer tells them they aren't allowed to get calls there.
  • Attorneys. If a collector knows the consumer has a lawyer for the debt and can find the lawyer's contact details, it generally must contact the lawyer instead.

The FTC also notes that, under federal rules, collectors can't call a person more than seven times in seven days about a debt.

Talking to other people about the debt

Collectors generally may not discuss a debt with anyone other than the consumer, the consumer's spouse or attorney and a few others the law lists. The FTC explains that collectors may contact other people to find out a consumer's address, phone number or workplace, usually only once, and may never tell those people that the consumer owes a debt.

Harassment and abuse

Section 1692d prohibits any conduct whose natural consequence is to harass, oppress or abuse. The law gives examples:

  • Using or threatening violence or other criminal means to harm a person, their reputation or their property.
  • Using obscene or profane language.
  • Publishing a list of consumers who allegedly refuse to pay debts, except to consumer reporting agencies in limited cases.
  • Calling repeatedly or continuously with intent to annoy, abuse or harass.
  • Placing calls without clearly identifying who is calling.

False or misleading statements

Section 1692e prohibits false, deceptive or misleading representations. Among its examples:

  • Falsely suggesting a connection with the federal or a state government, or falsely claiming to be an attorney.
  • Misstating the character, amount or legal status of a debt.
  • Suggesting that not paying will lead to arrest or imprisonment, unless that action is lawful and intended.
  • Threatening any action that cannot legally be taken or is not intended to be taken.
  • Communicating credit information the collector knows, or should know, is false, including failing to communicate that a disputed debt is disputed.

That last point connects collection to credit reports. A collection account can appear on a credit report, and the article How to read your credit report explains where collection items show up.

Asking a collector to stop contact

Under §1692c(c), if a consumer tells a collector in writing that they refuse to pay the debt or want the collector to stop communicating, the collector must stop further contact, with three exceptions: to say that collection efforts are ending, to say that the collector or creditor may use certain remedies it ordinarily uses, or to say that it intends to use a specific remedy. A notice sent by mail takes effect when the collector receives it.

The FTC notes that after such a letter, a collector can generally contact the consumer only to confirm that it will stop or to say that it plans a specific action, such as a lawsuit. Stopping contact does not, by itself, mean the debt is no longer owed.

Old debts

Every state sets a time limit, called a statute of limitations, for filing a lawsuit to collect a debt. The FTC explains that a collector cannot sue over a debt once that period has passed, which is known as a time-barred debt. Whether a collector can still contact someone about a time-barred debt depends on the state, and the FTC notes that in some states, paying part of the debt or acknowledging it in writing can restart the time limit. The time limit for lawsuits is separate from the seven-year limit on how long most negative information can appear on a credit report.

Reporting a problem

The FTC suggests that people report problems with a debt collector to their state attorney general's office, the FTC or the CFPB. The CFPB accepts complaints about debt collection online or by phone at (855) 411-2372, sends them to the company, and says companies generally respond within 15 days.

The FDCPA also allows consumers to sue a collector that breaks the law. The FTC says a suit must be filed within one year of the violation, and that a court can award up to $1,000 in additional damages even without proof of actual damages, plus attorney's fees and court costs.

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