7 Things Debt Collectors Can't Legally Do

Owing money does not mean you give up your rights. The federal Fair Debt Collection Practices Act, usually called the FDCPA, sets rules for how third-party debt collectors can contact you and what they can say. Illinois has its own collection laws too. If a collector has been calling nonstop, threatening you, or telling you things that do not sound right, it helps to know where the lines are.

One note first: the FDCPA generally applies to third-party debt collectors and debt buyers, not usually to the original lender collecting its own debt. Other laws may still apply to original creditors, so it is worth asking either way.

1. Call you at unreasonable times

Collectors generally cannot contact you at times they know or should know are inconvenient. Unless you agree otherwise, that generally means no calls before 8 a.m. or after 9 p.m. your local time. If you tell them you cannot take calls at work, they generally must stop calling you there.

2. Harass you with constant calls

Calling repeatedly to annoy or wear you down is prohibited. Federal rules (Regulation F) set a general presumption about how many calls in a week is too many. Collectors also cannot use obscene or abusive language or threaten violence.

3. Lie about who they are or what you owe

A collector cannot pretend to be a lawyer, a police officer, or a government agency. They cannot misstate how much you owe, add fees that are not allowed by your agreement or by law, or claim a debt is something it is not. False or misleading statements of any kind are generally off limits.

4. Threaten actions they cannot or will not take

You cannot be arrested for an ordinary unpaid consumer debt. A collector who threatens jail, or threatens a lawsuit or wage garnishment it has no intention of pursuing, may be violating the law. Collectors also generally cannot sue or threaten to sue on a debt that is too old under the statute of limitations.

5. Tell your family, friends, or boss about your debt

Collectors can contact other people to find out where you live or work, but they generally cannot tell those people that you owe money. They also generally cannot post about your debt publicly, including on social media where others can see it.

6. Ignore your request to stop contacting you

If you tell a collector in writing to stop contacting you, they generally must stop, except to confirm they are ending contact or to notify you of a specific action like a lawsuit. If you have a lawyer and the collector knows it, they generally must talk to your lawyer instead of you. Stopping contact does not erase the debt, but it can stop the pressure while you figure out your next steps.

7. Refuse to verify the debt

Collectors generally must send you a validation notice with basic information about the debt, including the amount and the creditor. If you dispute the debt in writing within the validation period, generally 30 days, the collector generally must pause collection until it sends you verification. Debt buyers in particular sometimes have incomplete records, so this request can be very revealing.

What if a collector breaks the rules?

If a collector violates the FDCPA, you may be able to bring a claim. The law generally allows recovery of actual damages, statutory damages of up to $1,000, and attorney's fees and costs. Because fees can be shifted to the collector, many consumers are able to pursue these claims without paying out of pocket. There is generally a short deadline to file, often one year from the violation, so do not wait.

Some practical tips in the meantime:

• Keep a log of every call: date, time, name, and what was said.
• Save letters, voicemails, texts, and emails.
• Send disputes and stop-contact requests in writing and keep a copy.
• Do not admit the debt or agree to pay over the phone until you understand your options.
• If you are sued, do not ignore the court papers. Missing a deadline can lead to a default judgment.

Learn more about how we help consumers on our Debt Collection Defense page.

Get a second opinion

This post is general information, not legal advice, and whether a particular tactic crosses the line depends on the facts. If a collector is pressuring you or you have been sued, contact us for a free case review. We can look at what has happened and talk through your options.