Notice of debt

A debt collector must notify you in writing of the exact amount of the amount owed, to whom you owe the money, and what you can do if you dispute the debt. This must occur within five days of the first contact. If you respond within thirty days that you do not owe the amount cited, the collector may not contact you again unless he submits written proof of the debt. This could be in the form of an unpaid bill or account statement.

Practices that are prohibited

There are certain debt collection practices that must be followed. Debt collectors may not harass you nor may they harass other individuals that they contact about you. This includes repeated phone calls, threats of harm, and profane language. They also may not mislead you or use false information in order to induce you to pay a debt. They cannot state that they are anyone other than a debt collector and they cannot misrepresent the amount they claim you owe. They cannot tell you that you have committed a crime or that you will be arrested. They cannot intimidate you by stating that your wages will be garnished or your property will be seized and sold if you fail to pay.

Video: Aggressive collection techniques are not necessarily legal.

They may not use a false identity, use deception, send official-looking documents that are not, contact you by postcard, collect an amount greater than the actual debt, or give false information about you to anyone. They also may not threaten you with a lawsuit if that action is not legally available, or if they have no intention to actually pursue such legal action.

Legal Rights

You can prevent further contacts by a debt collector by writing a letter to the collector demanding him to stop. From that point forward, they may not contact you again except to state that they will abide by your instructions, or to notify you that specific action will be initiated. Such a letter does not absolve the debt if it is actually owed. You are still subject to being sued by your creditor, or by the collector on its behalf. You have the right to bring suit against the collector in state or federal court, with a statute of limitations of one year. The monetary award may include damages suffered plus up to $1,000, legal fees, and court costs.

Video: Understanding what debt collection agents can and can't do.

Information needed

You should maintain a file that includes dates and times of phone calls, copies of voicemail messages, and all written correspondence including the envelopes. In addition, keep notes on all conversations conducted with anyone from the collection agency, including names, dates, and circumstances. To enforce your claim, you should also be able to produce paid bills of sale, paid receipts, canceled checks, and current account statements reflecting no balance due.

Reporting illegal action

The Federal Trade Commission (FTC) is tasked with the responsibility of protecting consumers from deceptive and unfair business practices. It is also a source of information to help consumers avoid such problems before they arise. Many states also have their own consumer protection laws which are enforced by the state attorney general (AG). As a general rule, the state AG should be contacted to determine your specific rights, and whether state and/or federal laws may have been broken. The FTC should also be contacted to file a formal complaint. The FTC can also be contacted by telephone: 877-382-4357.

The FTC enters all complaint data it receives into a secure online database known as the Consumer Sentinel Network. It provides useful information on abusive trends and patterns that is used by law enforcement agencies worldwide. The FTC is not involved in the resolution of individual consumer complaints. That burden remains on you through the pursuit of a settlement or legal action as you deem appropriate.

Federal Trade Commission
877-382-4357

Credit Infocenter
877-933-6932

Consumers’ Defense
866-465-3304

Community Credit Counselors, Inc.
800-531-5124

National Consumer Law Center
617-542-8010
202-452-6252