Your Rights when Fighting Debt Collectors

Debt collectors have but one goal in mind: to collect your debt. It can be easy to become intimidated by the collections process, but you do have rights as a debtor. Below you will find answers to some of the most frequently asked questions about debtors' rights:

Are there any laws to protect me as a debtor?

Yes. The Fair Credit Collection Practices Act exists for just that reason. Among its statutes is that collectors may contact debtors only between the hours of 8am and 9pm in their time zones, and that collectors must cease contact of family or friends of the debtor, or at the workplace of the debtor, after receiving written notification that it is unacceptable. In addition, it is illegal to deceive debtors in order to collect, to threaten impossible legal action or illegal action, or to reveal debt information to outside sources.

The Fair Credit Collection Practices Act applies only to collections agencies and attorneys.

How can a creditor legally contact me about debt payments?

A collector may try to contact you by phone, mail, or personal visit in rare situations. He or she may call or visit between 8am and 9pm. You may receive a call at work, although the collector is prohibited from sharing any personal information whatsoever with anyone other than you. He or she also may leave you phone messages, and can do so until you have notified the collector in writing to stop.

If a collector is unable to get in contact with you, he or she may call your employer, friends, or family to locate you. In such circumstances, the same privacy standards mentioned above apply, and the collector must stop such action when asked to do so in writing.

In ongoing, very serious cases, a collector may visit you in person.

Can I just give my word that I will follow a payment plan?

Even if you are able to just “give your word”, this definitely is not recommended. When it comes to debt and finances, have everything in writing. You do not want to be accused of failing to pay a sufficient amount after you thought you had made a verbal agreement otherwise. This is especially important if legal action is taken against you.

In addition, your case might switch from collection agency to collection agency, perhaps even more than once. The new agency might not know about prior agreements or arrangements unless they are in writing.

If I cannot pay my whole bill, can I just pay as much as possible?

Collections agencies aim to get full payment from you, so many will be difficult about accepting smaller payments. Legally, they do not have to do so. If you send partial payments, you may find that your payments are returned to you. Still, it is better to try to pay what you can rather than to ignore collections attempts. Documentation that you have tried to pay can be very useful in legal settings.

Remember, collections agencies have but one goal, and they do not care how it is achieved. Do not be forced by intimidation into a financial situation that is desperate. You do have an obligation to pay your debts, but you also have an obligation to yourself and your family. A debt professional can help you to find a better way out of debt.

What can I do if I feel that I am being harassed?

While many exchanges with collections agents may be unpleasant, harassment is a situation in which someone has stepped on the other side of the law. If an agent attempts to collect against Fair Collection Practices Act guidelines, this is harassment. The use of abusive, threatening, or demeaning language, contacting you late at night, or threatening to take actions that cannot or will not realistically be taken may be considered harassment.

Harassment is illegal and should be reported to the police.

What can I do if I believe that my debt is incorrect?

Under the Fair Collection Practices Act, an agency must immediately cease contacting you if you have asked them to stop because you doubt the debt in question. You should ask the agency in writing to provide proof that you are liable for the debt. If it cannot be proven, they may not continue collections out of court.


Am I responsible for my spouse’s debt?

Your responsibility depends upon when the debt was incurred. If one spouse racked up debt before the marriage, then the other spouse probably will not be held liable for repayment and should not be threatened by collections. If the debt was built up after the couple married, however, then both spouses may be subject to collections.

What can I do if I am threatened with legal action?

Collections agencies can take legal action against you, so they also can threaten you with those actions. However, they cannot unfairly threaten you with actions that cannot or would not be taken in your situation.

It is under the discretion of your original creditor whether or not to take legal action against you, not the collections agency. You may be sued, and your wages could be garnished or property seized in very serious circumstances.

If you believe a collector’s threats are harassment, such action is illegal and should be reported. If you are threatened with legal action, contact an attorney.

Can a collector garnish wages or seize my property?

Yes, but not until after you have been sued and a judgment is has been made for your creditor. Only then can a collections agency take such action.

Can I legally lose my job just for being in debt?

No, you cannot. This is a form of discrimination and is illegal.