10 Things Debt Collectors Can’t Do: Know Your Rights

ByDavid Hardman
10 Things Debt Collectors Can't Do

Managing debt can be a source of significant stress and can easily become overwhelming. However, it is crucial to be aware that there exist legal safeguards designed to shield individuals from exploitative or misleading practices employed by debt collectors. The Fair Debt Collection Practices Act (FDCPA) is a federal statute that governs the conduct of debt collectors and furnishes guidelines on their interaction with consumers.

If you find yourself in debt, it is imperative that you possess knowledge of your rights as conferred by the FDCPA. Among the most critical aspects to comprehend is the existence of specific prohibitions imposed on debt collectors. As of 2023, the Consumer Financial Protection Bureau reported that debt collection consistently ranked as one of the top consumer complaints, highlighting the widespread nature of the issue. By acquainting yourself with these constraints, you can effectively shield yourself from undue harassment, deceit, and other unjust practices.

Debt Collector Regulations

Debt Collectors’ Limits: Your Rights (Source : Unsplash)

According to a survey conducted by the Federal Trade Commission (FTC), in 2023 alone, there were over 3 million consumer complaints related to debt collection practices, emphasizing the need for consumer awareness and protection. This article will comprehensively outline ten actions that debt collectors are prohibited from undertaking. Furthermore, it will elucidate the procedures you can employ to exercise your rights in the event of a suspected violation by a debt collector. Debt collectors are subject to an extensive range of restrictions when attempting to collect debts, including but not limited to actions such as harassment, threats, misrepresentation of the debt or their authority.

Read More : Debunking Common Misconceptions About the Statute of Limitations on Debt

Upon concluding this article, you will possess a more comprehensive understanding of your rights as a consumer and be equipped with the necessary measures to safeguard yourself against abusive or deceptive debt collection practices.

  • Harass or Threaten You

One of the most important things to know about debt collectors is that they are not allowed to harass or threaten you in any way. This includes repeatedly calling you or calling you at inconvenient times, using profanity or abusive language, and threatening to take legal action they can’t or won’t actually take. If a debt collector engages in any of these behaviors, you have the right to report them to the Federal Trade Commission (FTC) and/or your state’s attorney general.

  • Misrepresent the Debt or Their Authority

Debt collectors are also prohibited from misrepresenting the debt or their authority to collect it. For example, they cannot falsely claim to be a lawyer or law enforcement officer, misrepresent the amount or nature of the debt, or threaten to take action they can’t or won’t actually take. If a debt collector engages in any of these behaviors, you have the right to dispute the debt and request validation of the debt in writing.

  • Engage in Unfair or Deceptive Practices

Debt collectors are not allowed to engage in unfair or deceptive practices when attempting to collect a debt. This includes adding unauthorized charges or fees to the debt, falsely threatening to garnish your wages or seize your property, and continuing to report a debt that is not yours or has been paid off to credit bureaus. If a debt collector engages in any of these behaviors, you have the right to dispute the debt and request validation of the debt in writing.

  • Contact You at Inconvenient Times or Places

Debt collectors are only allowed to contact you at reasonable times and places. For example, they cannot call you before 8 a.m. or after 9 p.m., and they cannot call you at work if your employer prohibits it. If a debt collector contacts you at an inconvenient time or place, you have the right to request that they stop contacting you altogether.

  • Contact Third Parties

Debt collectors are generally not allowed to contact third parties (such as your friends, family, or employer) about your debt unless they are trying to locate you. They are not allowed to discuss the details of your debt with anyone other than you or your attorney. If a debt collector contacts a third party about your debt, you have the right to request that they stop contacting you altogether.

Read More : How to Dispute a Debt in Collections and Improve Your Credit Score

An infographic summarizing rights against debt collectors
  • Continue to Contact You After You Request That They Stop

If you request that a debt collector stop contacting you, they must comply with your request (with a few exceptions, such as if they are suing you or providing you with legal notice). If a debt collector continues to contact you after you have requested that they stop, they are violating the law and you have the right to report them to the FTC and/or your state’s attorney general.

  • Threaten Legal Action They Cannot or Will Not Take

Debt collectors are not allowed to threaten legal action they cannot or will not take. For example, they cannot threaten to have you arrested or thrown in jail for not paying a debt. If a debt collector threatens legal action they cannot or will not take, you have the right to dispute the debt and request validation of the debt in writing.

  • Report Inaccurate Information to Credit Bureaus

Debt collectors must report accurate information to credit bureaus. This means that they cannot report a debt that is not yours, report inaccurate information about the debt, or continue to report a debt that has been paid off. If a debt collector reports inaccurate information to credit bureaus, you have the right to dispute the debt and request that the information be corrected.

  • Misrepresent Themselves

Debt collectors are not allowed to misrepresent themselves in any way. For example, they cannot claim to be someone they are not, such as a government official or an attorney. They also cannot use false company names or pretend to be someone else in order to obtain information about you. If a debt collector misrepresents themselves in any way, you have the right to report them to the FTC and/or your state’s attorney general.

  • Engage in Other Unfair Practices

In addition to the specific practices listed above, debt collectors are prohibited from engaging in other unfair practices when attempting to collect a debt. This can include threatening to take action they cannot or will not take, attempting to collect a debt that is beyond the statute of limitations, and failing to provide you with certain required disclosures. If you believe that a debt collector has engaged in an unfair practice, you have the right to dispute the debt and request validation of the debt in writing.

Experiencing indebtedness can present significant challenges and induce considerable stress, yet it is imperative to bear in mind that individuals possess certain entitlements. The Fair Debt Collection Practices Act (FDCPA) bestows crucial safeguards upon consumers, and acquiring a comprehensive comprehension of these entitlements can facilitate the avoidance of abusive or deceitful debt collection practices.

In the event that you believe a debt collector has infringed upon your entitlements, a series of steps can be pursued. Primarily, it is vital to document the violation and retain all correspondence received from the debt collector. Subsequently, you may proceed to file a formal complaint with the Federal Trade Commission (FTC) or the attorney general of your respective state. Additionally, in certain circumstances, you may have the opportunity to pursue legal action against the debt collector in order to seek reparations for damages incurred.

Always bear in mind that you possess the right to be treated justly and respectfully by debt collectors. By familiarizing yourself with your entitlements and taking appropriate action when necessary, you can effectively safeguard both yourself and your financial prospects.

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