Legal Disclaimer: This article provides general information for educational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change frequently. For advice specific to your situation, consult a licensed attorney in your area.
Debt collectors are notorious for aggressive tactics, but federal and state laws give you powerful protections. The Consumer Financial Protection Bureau (CFPB) provides official resources to help consumers understand their rights. Understanding your rights can stop harassment, challenge invalid debts, and even turn the tables on collectors who break the law.
Key Protection: The Fair Debt Collection Practices Act (FDCPA) allows you to sue collectors for $1,000 in statutory damages plus actual damages and attorney fees for each violation.
Your Rights Under the FDCPA
The Fair Debt Collection Practices Act (15 U.S.C. ยง 1692) protects you from abusive debt collection:
What Collectors Cannot Do
- Call before 8 a.m. or after 9 p.m.
- Call you at work if you've said you can't receive calls there
- Use abusive or threatening language
- Make false statements about the debt
- Claim to be attorneys or government officials
- Threaten arrest or legal action they can't take
- Discuss your debt with others (except spouse, attorney, co-signer)
- Add unauthorized fees or interest
- Contact you if you have an attorney
What Collectors Must Do
- Identify themselves in every communication
- Send written validation notice within 5 days
- Stop collection if you dispute in writing
- Verify the debt before continuing collection
- Stop contacting you if you request in writing
FDCPA Limits: The FDCPA only applies to third-party debt collectors, not original creditors. However, many states have laws covering original creditors too.
Debt Validation Rights
Within 30 days of first contact, you can demand verification:
What to Request
- Amount of debt including breakdown of interest and fees
- Name of original creditor
- Proof you owe the debt
- Copy of original signed agreement
- Documentation of payment history
Effect of Validation Request
- Collector must stop all collection activity
- Cannot report to credit bureaus until verified
- Must provide requested documentation
- If they can't verify, they must stop collecting
How to Stop Collection Calls
Cease and Desist Letter
A written cease and desist letter requires collectors to stop contacting you:
- Send via certified mail with return receipt
- Keep copy for your records
- Collector can only contact you once more to confirm
- They can still sue you, but can't call or write
What to Include
- Your name and account number
- Clear statement to stop all contact
- Your signature and date
Challenging Invalid Debts
Common Reasons Debts Are Invalid
- Wrong person: Not your debt
- Paid debt: Already satisfied
- Wrong amount: Incorrect balance
- Statute of limitations expired: Time-barred debt
- Discharged in bankruptcy: No longer owed
- Identity theft: Fraudulent accounts
Statute of Limitations
Time limits on debt collection lawsuits vary by state:
- 3 years: SC, NC, MD
- 4 years: CA, TX, FL, PA
- 5 years: CO, AZ, NV, WA
- 6 years: NY, MA, MI, OH, IL
- 10+ years: WY (8), KY (10), RI (10)
Caution: Making a payment or acknowledging the debt can restart the statute of limitations in many states. Don't do either until you understand your state's rules.
Credit Reporting Protections
Recent Changes
- Medical debt under $500 removed from reports (2023)
- Paid medical debt removed immediately
- One-year waiting period before medical debt appears
Disputing Credit Report Entries
- Dispute directly with credit bureaus
- Bureau must investigate within 30 days
- Unverified items must be removed
- Can add statement to your report
When Collectors Break the Law
Document Violations
Keep records of:
- Call logs with dates, times, what was said
- Copies of all letters received
- Voicemails (save them)
- Screenshots of texts or emails
- Names of collector employees
Your Legal Options
- FDCPA lawsuit: Up to $1,000 statutory damages per case
- Actual damages: For harassment, lost wages, etc.
- Attorney fees: Collector pays your legal costs
- Class actions: For widespread violations
- CFPB complaint: Federal enforcement
- State AG complaint: State enforcement
State Laws May Offer More
Some states provide stronger protections:
- California: Rosenthal Act covers original creditors
- New York: City and state consumer protection laws
- Texas: TDCPA with additional protections
- Florida: FCCPA covers more debt types
- Massachusetts: Strong debt collection regulations
Negotiating with Collectors
If You Owe the Debt
- Settlement: Often accept 40-60% of balance
- Payment plans: Spread out over time
- Pay for delete: Remove from credit report
- Get everything in writing: Before paying
Negotiation Tips
- Know your budget before negotiating
- Start with a lower offer
- Get settlement agreement in writing first
- Pay with money order or cashier's check
- Never give access to your bank account
Zombie Debt
Old debts resurrected by collectors require caution:
- May be past statute of limitations
- May have been discharged in bankruptcy
- May have been paid
- Don't acknowledge or make payments
- Don't let them restart the clock
Being Sued for Debt
Don't Ignore a Lawsuit
- Respond within deadline (usually 20-30 days)
- Assert all defenses
- Request proof of debt
- Challenge standing to sue
Common Defenses
- Statute of limitations expired
- Wrong defendant (not your debt)
- Debt was discharged
- Incorrect amount
- Collector lacks documentation