What are my rights regarding collection agencies?
Last Updated October 24, 2008
If your credit problems have progressed to the point where your creditors have turned your case over to collection agencies, it is important to know your legal rights. Collection agencies are not allowed to do the following:
- call your office,
- call your home before 8 a.m. or after 9 p.m.,
- address you in an abusive manner, or
- call family or friends in an attempt to collect your debt.
Under the Fair Debt Collection Practices Act (FDCPA), debt collectors cannot harass you. If any of the above is happening to you, tell the collection agency to stop harassing you. If it continues, ask for its name and address and report it to the Better Business Bureau, the Federal Trade Commission or your state's attorney general's office. These numbers can be found in your telephone book or by calling directory assistance.
May a debt collector contact any person other than you concerning your debt?
If you have an attorney, the debt collector may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors usually are prohibited from contacting such permissible third parties more than once. In most cases, the collector is not permitted to tell anyone other than you and your attorney that you owe money.
What is the debt collector required to tell you about the debt?
Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.
May a debt collector continue to contact you, if you believe you do not owe money?
A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
What can I do if a bill collector violates the FDCPA?
First, try to get the collector back on the phone and repeat whatever you said the first time that caused the collector to make the illegal statement(s). Have a witness listen in on an extension or tape the conversation. Taping is permitted without the collector's knowledge in all states except
California, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Montana, New Hampshire, Pennsylvania and Washington.
Then file a complaint. You can even file a complaint if you don't have a witness, but a witness helps. File your complaint with the Federal Trade Commission, 6th & Pennsylvania Ave., NW, Washington, DC 20850, 202-326-2222.
The FTC also has an on-line complaint form at:
https://rn.ftc.gov/dod/wsolcq$.startup?Z_ORG_CODE=PU01
Next, complain to your state consumer protection agency (who in some cases is your state attorney general's office).
Finally, send a copy of your complaint to the creditor who hired the collection agency. If the violations are severe enough, the creditor may stop the collection efforts. If the violations are ongoing, you can sue the collection agency (and the creditor that hired the agency) for up to $1,000 in small claims court for violating the FDCPA. You probably won't win if you can prove only a few minor violations. If the violations are outrageous, you can sue the collection agency and creditor in regular civil court.
Other articles on collection agencies:
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