Debt Collection FAQs for Consumers
Federal law prohibits collection agencies and collection attorneys from harassing debtors. The Federal Trade Commission, the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you. This act covers personal, household, and family debts. It does not cover debts you incurred to run a business. Provided below are some common questions and answers relating to consumers’ rights and debt collection practices.
When and where can a debt collector contact me?
A debt collector may only contact you between the hours of 8am and 9pm, unless you agree otherwise. Also, they may not contact you at work if you notified them orally or in writing that you are not allowed to take personal calls.
How can I stop a debt collector from contacting me?
You may want to speak with the debt collector at least once to attempt to resolve the matter – even if you don’t think you owe the debt, can’t repay it immediately, or think that the debt collector is contacting you by mistake. If after contacting the collector you do decide that you do not want to be contacted again, here is what you will need to do. Write a letter stating that you no longer want to be contacted. Make a copy of the letter for your files. Send the original certified with return receipt requested. This will provide a record that they received the letter. Once they receive the letter they may only contact you to notify you that there will be no further contact or that they intend to take a specific action like filing a lawsuit. Be advised that this does not remove the debt or your obligation to pay, but it should stop the contact.
Can a debt collector contact anyone else about my debt?
Debt collectors are limited in who they can contact and what they disclose about you. If represented by an attorney for your debt, then all communication must go through the attorney. If you do not have an attorney, they may contact other people, but only to find out your address, telephone number, and place of work. They are generally prohibited from discussing your debts with anyone other than yourself, your spouse, or your attorney.
What does the debt collector have to tell me about the debt?
Every debt collector must send you a written “validation notice” outlining what you owe, to whom the money is owed, and procedures for disputing the claim, all within 5 days from first contacting you.
Can a debt collector keep contacting me even if I don’t think I owe any money?
If you send the debt collector a letter stating that you don’t owe any or all of the money, or ask for verification of the debt, that collector must stop contacting you. You must send the letter within 30 days after you received the “verification letter” like a copy of the bill for the amount you owe.
Do I get to decide which debts my payments apply to?
If a debt collector is trying to collect on more than one debt from you, then they must apply the payment to the debt you select. Also, a debt collector may not apply a payment to a debt you don’t think you owe.
Can a debt collector garnish my bank account?
If you don’t pay a debt, you can be sued for collection, which may result in a judgment against you. The judgment states the amount you owe and allows for the possibility of garnishment. This garnishment may be attached to your bank account or your paycheck, where funds are turned over to pay your debt. Do not ignore a lawsuit summons or you may lose the opportunity to fight a garnishment.
What should I do if a debt collector sues me?
If a debt collector files a lawsuit to collect a debt, respond to the lawsuit, either personally or through a lawyer. Make sure to respond within the deadline on the court papers to preserve your rights.
Can a debt collector garnish my federal benefits?
Many federal benefits are protected from garnishment. Under special circumstances, garnishment may occur to pay for delinquent taxes, alimony, child support or student loans.
Benefits that are exempted include:
- Social Security Benefits
- Supplemental Security Income (SSI) Benefits
- Veterans’ Benefits
- Civil Service and Federal Retirement and Disability Benefits
- Service Members’ Pay
- Military Annuities and Survivors’ Benefits
- Student Assistance
- Railroad Retirement Benefits
- Merchant Seamen Wages
- Longshoremen’s and Harbor Workers’ Death and Disability Benefits
- Foreign Service Retirement and Disability Benefits
- Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
- Federal Emergency Management Agency Federal Disaster Assistance
What can I do if I think a debt collector has violated the law?
You have the right to sue a debt collector in state or federal court within one year from the date the law was violated. If you win, the judge may require the debt collector to pay any damages you can prove you suffered as a result of the illegal collection practices like lost wages or medical bills. You may also be reimbursed for your attorney fees and court costs. However, even if the debt collector violates the FDCPA in attempting to collect a debt, your obligation to pay does not go away.
Where do I report a debt collector for an alleged violation?
Report any problems you have with a debt collector to your state Attorney General’s Office and the Federal Trade Commission. The Attorney General’s Office of California has state specific laws regarding your rights.
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