If a delinquent debt has been turned over to a collection agency by creditor you originally owed--be it for credit card debt or a cable or phone bill--you can expect to start receiving letters and phone calls about the debt. Collection agencies are given certain latitude when it comes to attempting to collect the debt as long as they operate within the parameters of the law. The federal Fair Debt Collection Practices Act regulates the actions of collection agencies and prohibits them from using harassment, threats or unfair practices to collect a debt.
Collection Agencies Basics
Collection agencies and other debt collectors can contact you at home by phone after 8 a.m. and before 9 p.m. but cannot contact you at work about the debt if informed orally or in writing that you cannot take calls there. If you wish to stop receiving phone calls from collection agencies, notify the agency in writing and send the letter certified mail, return receipt requested. The collection agency cannot contact you again except to confirm receipt of your correspondence.
Collection Agencies and Third Parties
A collection agency can contact a third party, such as a family member or friend, to obtain your contact information and where you work but typically cannot contact the third party more than once unless she agrees to be contacted. Moreover, a collection agency cannot discuss the debt unless it's with you, your spouse or an attorney who represents you. If you have an attorney, the collection agency must contact your attorney directly.
Harassment
The Fair Debt Collection Practices Act prohibits collection agencies from using tactics that harass. Threats to harm you or use of profanity or obscene language are strictly prohibited. A collection agency cannot publish your name among others who refuse to pay a debt, nor can they repeatedly phone you over and over during the course of a day.
False Statements
Collection agencies are prohibited from making certain false statements. They cannot claim to be attorneys or representatives of the U.S. government, tell you that you've committed a crime (or suggest that you'll be arrested if you don't pay the debt), imply that they work for a credit reporting agency (such as Experian, Equifax or TransUnion), skew the amount owed on the debt or claim that they sent you legal forms that really aren't (and vice versa).
Unfair Practices and Scare Tactics
Federal law prohibits certain unfair practices. A collection agency cannot ask you to pay interest, fees or other charges in addition to the amount of the debt unless permitted by your state's laws. A collection agency cannot send you a postcard, deposit post-dated check prematurely or tell you that your paycheck or property will be taken, garnished or attached unless they have the legal authority to do so by state law.
Reporting Violations
Many states also have laws that regulate collection agencies. Such laws must conform with federal law, and many offer debtors additional protections against harassment, threats and unfair and deceptive practices used by collection agencies. If you feel that a collection agency or other debt collector is in violation of federal or state law, report the agency to the Attorney General's office in your state (see Resources), as well as the Federal Trade Commission's Consumer Response Center. The FTC can be contacted through its online complaint form (see Resources), by phone at (877) 382-4357 or by mail at the following address:
Consumer Response Center
Federal Trade Commission
600 Pennsylvania Avenue NW
Washington, DC 20580
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