Debt Collection Defense: Know Your Rights

The Fair Debt Collection Practices Act (FDCPA) provides powerful protections for consumers facing debt collection. Understanding your rights can help you stop harassment, dispute questionable debts, and potentially recover damages when collectors violate the law. This comprehensive guide covers your federal and state rights, how to validate debts, what collectors cannot do, and how to fight back when collection agencies cross the line. For official information about your debt collection rights, visit the Consumer Financial Protection Bureau's debt collection resources.

Understanding the FDCPA

The Fair Debt Collection Practices Act (15 U.S.C. 1692-1692p) is the primary federal law regulating debt collection. Enacted in 1977 and significantly updated by Regulation F in 2021, the FDCPA restricts how debt collectors can contact you and what they can say.

Who the FDCPA Covers

Entity Type	Covered by FDCPA?	Notes
Collection agencies	Yes	Primary target of the law
Debt buyers	Yes	Companies that purchase debts
Attorneys collecting debt	Yes	If collecting for others regularly
Original creditors	Generally no	State laws may apply
In-house collectors	Generally no	Unless using different name

Your Right to Debt Validation

One of your most powerful rights is the ability to demand validation (proof) of a debt. Under 15 U.S.C. 1692g, collectors must provide certain information and cease collection if you dispute.

Required Information from Collectors

Within 5 days of first contacting you, a collector must provide:

• The amount of the debt
• The name of the creditor to whom the debt is owed
• A statement that you can dispute the debt within 30 days
• A statement that if you dispute, they'll provide verification
• A statement that they'll provide the original creditor's name if different

How to Request Validation

1. Send written request within 30 days of receiving their initial notice
2. Request must be in writing (keep a copy)
3. Send via certified mail with return receipt
4. Collector must stop collection until they verify
5. If they can't validate, they must stop collecting entirely

Prohibited Collector Conduct

The FDCPA prohibits numerous abusive, deceptive, and unfair practices. Violations can result in damages of up to $1,000 per lawsuit plus actual damages and attorney's fees.

Harassment and Abuse (15 U.S.C. 1692d)

Prohibited Conduct	Specific Examples
Threats of violence	Threatening physical harm to you or your property
Obscene or profane language	Cursing, yelling, using slurs
Repeated calling to annoy	More than 7 calls in 7 days per debt
Calling at prohibited times	Before 8 AM or after 9 PM local time
Publishing "deadbeat" lists	Publicly shaming debtors

False or Misleading Representations (15 U.S.C. 1692e)

• Falsely implying they're attorneys or government officials
• Misrepresenting the amount owed
• Falsely claiming you committed a crime
• Threatening actions they can't legally take
• Falsely claiming to be a credit reporting agency
• Using fake company names or documents
• Implying your wages can be garnished when they can't
• Threatening arrest or imprisonment

Unfair Practices (15 U.S.C. 1692f)

• Collecting amounts not authorized by the agreement or law
• Depositing post-dated checks early
• Taking or threatening to take property without legal right
• Contacting you by postcard (revealing debt to others)
• Adding unauthorized fees, interest, or charges

Communication Rules Under Regulation F

The CFPB's Regulation F (12 CFR 1006), effective November 2021, established specific rules for debt collector communications.

Call Frequency Limits

Rule	Limit
Calls per debt per 7 days	Maximum 7 attempted calls
After phone conversation	No calls for 7 days on that debt
Multiple debts	Limits apply per debt, not total

Electronic Communication Rules

• Collectors can use email, text, and social media with certain restrictions
• Must provide opt-out method for electronic communications
• Cannot communicate via social media in a way visible to the public
• Must include clear identification as a debt collector

Your Right to Stop Collection Contacts

Under 15 U.S.C. 1692c(c), you can demand that a collector stop contacting you entirely.

How to Send a Cease Communication Letter

1. Write a clear statement requesting they stop all contact
2. Include your name, address, and account number if known
3. Send via certified mail with return receipt
4. Keep a copy of the letter and receipt

After receiving your letter, collectors may only contact you to:

• Confirm they'll stop further communication
• Notify you of specific legal action they intend to take

Statute of Limitations on Debt

Every state has a statute of limitations on debt collection lawsuits. After this period expires, collectors can still contact you but cannot successfully sue.

State	Written Contract	Credit Card	Medical Debt
California	4 years	4 years	4 years
Texas	4 years	4 years	4 years
New York	6 years	6 years	6 years
Florida	5 years	4 years (oral)	5 years
Illinois	10 years	5 years	10 years
Ohio	8 years	6 years	6 years
Pennsylvania	4 years	4 years	4 years
Georgia	6 years	4 years (open)	6 years

State Consumer Protection Laws

Many states have their own debt collection laws providing additional protections.

California (Rosenthal Fair Debt Collection Practices Act)

• Covers original creditors, not just third-party collectors
• Cal. Civ. Code 1788-1788.32
• Statutory damages up to $1,000 per violation
• Actual damages plus attorney's fees

New York (NYCRR 23)

• Licensed debt collectors must follow state rules
• Prohibits threats of criminal prosecution
• Restricts contact with third parties
• Department of Financial Services enforces

Texas (Texas Finance Code Chapter 392)

• Texas Debt Collection Act
• Covers creditors and collectors
• Injunctive relief available
• Attorney's fees for violations

Defending Against Debt Collection Lawsuits

If a collector sues you, responding properly is critical. Ignoring a lawsuit will likely result in a default judgment against you.

Common Defenses

Defense	When It Applies	Evidence Needed
Statute of Limitations	Debt is too old to collect through lawsuit	Date of last payment or default
Wrong Person	Debt isn't yours (identity theft, same name)	ID documents, police reports
Already Paid	Debt was already satisfied	Payment records, bank statements
Discharged in Bankruptcy	Debt was included in bankruptcy	Bankruptcy discharge order
Lack of Standing	Collector can't prove they own the debt	Demand chain of title documents
Wrong Amount	Amount claimed is incorrect	Original statements, contracts

Steps to Respond to a Lawsuit

1. Don't ignore it: You typically have 20-30 days to respond
2. File an answer: Deny allegations you dispute, admit what's true
3. Assert defenses: Raise statute of limitations, lack of standing, etc.
4. Request discovery: Demand proof of the debt, chain of ownership
5. Consider counterclaims: If collector violated FDCPA, sue back
6. Attend all hearings: Not appearing results in default judgment

Suing Debt Collectors for Violations

When collectors violate the FDCPA, you can sue them in federal or state court.

Available Damages

Damage Type	Amount	Requirements
Statutory Damages	Up to $1,000 per lawsuit	Any FDCPA violation
Actual Damages	No limit	Must prove harm (lost wages, emotional distress)
Attorney's Fees	Reasonable amount	Prevailing plaintiff entitled
Court Costs	Filing fees, service costs	Prevailing plaintiff entitled
Class Action	Up to $500,000 or 1% of net worth	Widespread violations

Finding an FDCPA Attorney

Because the FDCPA provides for attorney's fees, many consumer attorneys take these cases on contingency:

• National Association of Consumer Advocates (NACA)
• Your state bar's lawyer referral service
• Legal aid organizations for low-income individuals
• Consumer law firms (search "FDCPA attorney" + your city)

Credit Reporting and Debt Collection

Debt collection activity appears on credit reports and can significantly impact your credit score.

Your Rights Under FCRA

• Dispute inaccurate information: Credit bureaus must investigate within 30 days
• Request validation: When disputing with bureau, collector must verify
• Medical debt protections: New rules require waiting periods before reporting
• Paid collections: Some scoring models ignore paid collections

Collection Account Timeline

Event	Credit Report Impact
Account sent to collections	Reports for 7 years from original delinquency
Medical debt	1-year waiting period before reporting (as of 2023)
Paid medical collection under $500	May not appear on reports (as of 2023)
Debt sold to new collector	Original date controls, not sale date

Special Types of Debt

Medical Debt

• New credit reporting rules provide additional protections
• No Surprises Act limits out-of-network billing
• Many states have medical debt collection restrictions
• Nonprofit hospitals must offer charity care

Student Loan Debt

• Federal loans have special protections and repayment options
• Private loans generally follow standard FDCPA rules
• Statute of limitations varies by state for private loans
• Federal loans have no statute of limitations

Credit Card Debt

• Usually treated as open-ended account or written contract
• Statute of limitations typically 3-6 years
• Card agreement may specify governing state law
• Common target for debt buyers

Frequently Asked Questions

Can a debt collector contact my family or employer?

Collectors can contact third parties only to locate you, and only once per person. They cannot reveal the debt exists. Contacting your employer about the debt (except for wage garnishment after judgment) is generally prohibited.

What if I don't recognize the debt?

Send a written validation request within 30 days. The collector must stop collection and provide proof of the debt before continuing. If they can't validate it, they cannot continue collecting.

Can collectors add interest and fees to my debt?

Only if the original contract or state law allows it. Unauthorized fees are an FDCPA violation. Review your original agreement and compare to what's being collected.

What if I'm judgment-proof?

If your income comes entirely from protected sources (Social Security, disability, certain pensions) and you have no attachable assets, collectors may not be able to collect even with a judgment. However, judgments can last 10-20+ years and circumstances change.

Should I negotiate or settle a debt?

Consider negotiation if you owe the debt and can afford a settlement. Get any agreement in writing before paying. Be aware that forgiven debt over $600 may be taxable income. Settling doesn't remove the account from your credit report.

What happens if I ignore a debt collector?

The collector may continue calling, report to credit bureaus, or sue you. Ignoring a lawsuit will result in a default judgment, potentially allowing wage garnishment or bank account seizure. It's generally better to respond, even if only to assert defenses.

Can I record phone calls with collectors?

It depends on your state's recording laws. Some states require all-party consent (everyone on the call must agree), while others only require one-party consent (just you). Recordings can be powerful evidence of FDCPA violations.