Your Debt Collection Rights Under the FDCPA

The Fair Debt Collection Practices Act (FDCPA) is a federal law enacted in 1977 that regulates how third-party debt collectors can conduct business. The law was created in response to widespread abusive, deceptive, and unfair debt collection practices that harmed consumers and invaded their privacy.

The FDCPA establishes clear rules about when, where, and how debt collectors can contact you. It prohibits harassment, false statements, and unfair practices. Most importantly, it gives you specific rights to dispute debts, demand verification, and stop unwanted contact.

Key principle: Debt collectors must treat you with dignity and respect. They cannot use tactics designed to intimidate, embarrass, or deceive you into paying debts you may not even owe.

The FDCPA DOES Cover:

• Third-party debt collectors: Collection agencies that collect debts owed to others
• Debt buyers: Companies that purchase old debts for pennies on the dollar
• Lawyers who regularly collect debts: Law firms acting as debt collectors
• Companies collecting under different names: Using a name other than their own

The FDCPA Does NOT Cover:

• Original creditors: The company you originally owed (credit card company, hospital, etc.)
• Business debts: Only personal, family, and household debts are covered
• Government agencies: IRS, student loan servicers working for the government

Understanding what debt collectors are legally allowed to do helps you distinguish between legitimate collection activities and violations of your rights:

• Contact you directly: Call, text, email, or send letters about the debt
• Report to credit bureaus: Report the debt to Equifax, Experian, and TransUnion
• Sue you in court: File a lawsuit to obtain a judgment (if within statute of limitations)
• Contact you between 8am-9pm: Call during reasonable hours in your time zone
• Contact your attorney: If you're represented, they should contact your lawyer instead of you
• Contact third parties once: Call family/employers/neighbors ONE TIME to locate you (but cannot reveal the debt)
• Send settlement offers: Offer to settle the debt for less than the full amount
• Request payment: Ask you to pay what they claim you owe

What's considered reasonable: Collectors can use normal business practices to collect legitimate debts. The key is they must do so truthfully, without harassment, and within the strict boundaries set by law.

Harassment and Abuse

Debt collectors cannot harass, oppress, or abuse you. Specifically prohibited:

• Using threats of violence or harm
• Using obscene or profane language
• Calling repeatedly to annoy or harass you
• Calling without properly identifying themselves
• Publishing your name on a "bad debt" list (except to credit bureaus)

Real example: A collector calling 10 times per day, yelling profanity, and threatening to "come to your house" violates the FDCPA. Each call could be a separate violation worth up to $1,000.

False or Misleading Statements

Debt collectors cannot lie or use deceptive practices:

• Falsely claiming to be attorneys, government representatives, or law enforcement
• Misrepresenting the amount you owe
• Claiming you'll be arrested or go to jail (not true for consumer debts)
• Threatening to garnish wages or seize property without a court judgment
• Claiming you've committed a crime by not paying
• Threatening to sue when they have no intention or legal right to do so
• Claiming documents are legal forms when they're not
• Stating they'll harm your credit rating if you don't pay (if already reported)
• Using false company names or sending letters that look like court documents

Real example: Collector sends a letter on fake "legal letterhead" claiming "FINAL NOTICE BEFORE ARREST WARRANT" for a $500 credit card debt. This is 100% illegal - you cannot be arrested for unpaid consumer debt.

Unfair Practices

Debt collectors cannot use unfair or unconscionable means to collect:

• Collecting amounts not authorized by the agreement or law (adding unauthorized fees)
• Depositing post-dated checks early
• Taking or threatening to take property without legal right (unless you defaulted on secured debt)
• Contacting you by postcard (not private)
• Using deception to get you to accept collect calls or pay telegram fees

Time Restrictions

Debt collectors can only contact you during reasonable hours:

• Allowed hours: 8:00 AM to 9:00 PM in YOUR time zone
• Prohibited hours: Before 8:00 AM or after 9:00 PM
• Exception: If you've given permission for other times

Real example: If you live in California (Pacific Time) and a collector in New York calls at 7:00 AM Eastern Time, that's 4:00 AM Pacific Time - a clear FDCPA violation.

Location Restrictions

Debt collectors cannot contact you at inconvenient places:

• Work: Cannot call you at work if you tell them (verbally or in writing) that your employer prohibits such calls
• Tell them once: You only need to tell them one time not to call you at work
• Document it: Send written notice and keep a copy

Sample statement: "I am not permitted to receive debt collection calls at work. Do not contact me at this number again. My work number is [number]."

Third-Party Contact Restrictions

Debt collectors have very limited ability to contact others about your debt:

• Location information only: They can contact third parties (family, friends, neighbors, coworkers) ONLY to obtain your location information (address, phone, workplace)
• One contact per person: Can only contact each person ONE TIME (unless person requests callback or collector believes the first information was wrong)
• Cannot reveal the debt: Cannot tell third parties that you owe money
• Must identify themselves: But can only say they're confirming location information
• Cannot contact after location known: Once they have your contact information, no more third-party calls

Real example: A collector calling your mother repeatedly, telling her you owe money and asking her to pay is a serious FDCPA violation - multiple calls to the same person AND revealing the debt.

If You Have an Attorney

Special rules apply when you're represented:

• If debt collector knows you have an attorney, they must contact the attorney instead of you
• Send written notice with your attorney's name and contact information
• Collector can only contact you directly if attorney doesn't respond or gives permission

Initial Validation Notice

Within five days of first contacting you, debt collectors MUST send a written validation notice containing:

• The amount of the debt
• The name of the creditor to whom you owe the debt
• A statement that unless you dispute the debt within 30 days, it will be assumed valid
• A statement that if you dispute the debt in writing within 30 days, they'll send verification
• A statement that if you request it in writing within 30 days, they'll provide the original creditor's name and address

How to Request Debt Validation

Send a debt validation letter within 30 days of receiving the initial notice:

Sending tips:

• Send via certified mail with return receipt requested
• Keep a copy for your records
• Send within 30 days of receiving validation notice
• Collection activity must stop until they provide verification

What Happens After You Request Validation

Once you send a validation request within 30 days:

• Collection must pause: Collector must stop collection efforts until they send verification
• No credit reporting: They shouldn't report to credit bureaus until verified
• They must respond: Must provide verification before resuming collection
• What's sufficient: Account statements, signed contracts, bill of sale showing they own the debt
• If they can't verify: They must cease collection on that debt

Your Right to Stop Contact

You have the absolute right to tell a debt collector to stop contacting you. Once you send a written cease communication letter, the collector can only:

• Confirm they received your letter and will stop contact
• Notify you of specific actions they plan to take (like filing a lawsuit)
• Send nothing further

Important considerations before sending:

• This doesn't make the debt go away
• Collector may sue you (if within statute of limitations)
• They can still report to credit bureaus
• You won't know about lawsuits unless served with papers
• Consider validation letter first if you dispute the debt

Cease and Desist Letter Template

Sending instructions:

• Send via certified mail, return receipt requested
• Keep copies of everything
• Once sent, legally binding on collector
• Any further contact (except allowed exceptions) is FDCPA violation

The statute of limitations is the time period during which a creditor can sue you for an unpaid debt. After this period expires, the debt is "time-barred" and they generally cannot win a lawsuit against you.

Important: Varies by state and debt type

Each state sets its own statute of limitations. The period typically ranges from 3 to 10 years and depends on the type of debt:

• Written contracts: Credit cards, personal loans (most common)
• Oral contracts: Agreements not in writing
• Promissory notes: Formal written promise to pay
• Open accounts: Revolving credit accounts

Statute of Limitations by State (Written Contracts)

When Does the Clock Start?

The statute of limitations typically begins on the date of:

• Last payment on the account, OR
• Last use of the account (like a credit card purchase), OR
• Date of default (first missed payment that led to charge-off)

Most states use: Date of last payment or last activity on the account.

Can the Statute of Limitations Be Reset?

YES - Be extremely careful:

• Making a payment: Even a small payment can restart the clock in many states
• Acknowledging the debt: Saying "I owe this" can reset the period in some states
• Written agreement: Signing a new payment agreement
• Promise to pay: Written promise to pay the debt

What Is Time-Barred Debt?

A debt is "time-barred" when the statute of limitations has expired. This means:

• Creditor cannot sue you: If they do sue, you have a complete legal defense
• They can still ASK for payment: It's legal to request payment on time-barred debt
• Still appears on credit report: Until 7 years from first delinquency date
• You can still choose to pay: But you're not legally required to

Collector Tactics for Time-Barred Debt

Debt collectors often target time-barred debts because:

• They bought it for pennies (maybe 1-3% of face value)
• Any payment is profit
• Consumers don't know it's time-barred
• Small payment restarts the clock

What they do:

• Make it sound urgent ("final notice," "immediate action required")
• Offer "generous settlements" (75% off!)
• Pressure you with multiple calls
• Don't mention the debt is time-barred
• Try to get you to make even a small payment

Your Rights with Time-Barred Debt

Special protections apply when collectors contact you about time-barred debt:

• Must disclose if requested: Some states require collectors to tell you it's time-barred
• Cannot threaten to sue: If they know it's time-barred, threatening suit is an FDCPA violation
• Cannot be misleading: Making it sound like you must pay is deceptive
• You can send cease letter: Stop all communication about time-barred debt

If Sued on Time-Barred Debt

DO NOT IGNORE IT! You must respond even if the debt is time-barred:

• Appear in court: You MUST show up or file a response
• Raise the defense: Argue the statute of limitations has expired
• Provide evidence: Show when the statute of limitations started and expired
• If you don't appear: Collector gets default judgment even though debt is time-barred

This is critical: Many collectors sue on time-barred debts hoping you won't show up. They get default judgments worth thousands on debts they paid $20 for. Always respond to lawsuits.

What Is Zombie Debt?

"Zombie debt" refers to very old debts that keep coming back to life - often debts you:

• Already paid
• Never owed in the first place
• Had discharged in bankruptcy
• Are beyond the statute of limitations
• Have no records of anymore

How it happens: Debt buyers purchase massive portfolios of old debts for pennies. The information is often incomplete or inaccurate. They contact people hoping to collect something - anything - to make a profit.

Common Zombie Debt Scenarios

1. Debt You Already Paid

• Original creditor sold the debt after you paid (didn't update records)
• Collector has outdated information
• Your move: Send proof of payment, dispute with credit bureaus if reported

2. Identity Theft or Wrong Person

• Someone with a similar name had the debt
• Identity theft created the debt
• Your move: Send identity theft report, file police report, dispute aggressively

3. Discharged in Bankruptcy

• Debt was included in bankruptcy but sold afterward
• Collector may not know (or pretends not to know) about bankruptcy discharge
• Your move: Send copy of bankruptcy discharge, report to bankruptcy court if continues

4. Same Debt, Multiple Collectors

• Debt sold multiple times
• Several companies trying to collect the same debt
• Your move: Demand validation from each collector

How to Handle Zombie Debt

Step 1: Don't panic or engage immediately

• Don't admit anything on the phone
• Don't make any payments
• Don't provide bank account information
• Request everything in writing

Step 2: Send a validation letter

• Use the template provided in the Validation section above
• Demand proof you owe the debt
• Ask for complete chain of custody

Step 3: Check your records

• Pull your credit reports (free at AnnualCreditReport.com)
• Review statute of limitations for your state
• Check old bank statements if you think you paid it
• Look for bankruptcy discharge papers if applicable

Step 4: Dispute if incorrect

• If you don't owe it, say so in writing
• If already paid, send proof
• If time-barred, you can note that (but they can still ask for payment)
• If discharged, send bankruptcy documentation

Step 5: Consider cease and desist

• If it's definitely not your debt, send cease letter
• Stops the harassment
• If they sue, you'll need to defend (but you have strong defense)

When to Dispute a Debt

You should dispute a debt if:

• You don't recognize the debt
• The amount is wrong
• You already paid it
• It's not yours (wrong person or identity theft)
• It's past the statute of limitations and they're threatening to sue
• You never received the goods or services
• The quality of goods/services was poor
• The debt was discharged in bankruptcy

The Dispute Process

Step 1: Act within 30 days of validation notice

• Debt collector must send validation notice within 5 days of first contact
• You have 30 days from receiving that notice to dispute
• Collection must pause while they verify

Step 2: Send written dispute

• Use the debt validation letter template (provided earlier)
• Clearly state you dispute the debt
• Explain why (wrong amount, not yours, already paid, etc.)
• Request validation/verification
• Send via certified mail, return receipt requested

Step 3: Collection must stop

• Collector cannot continue collection efforts until they verify
• Cannot report to credit bureaus until verified
• Cannot sue until they've verified

Step 4: Collector must verify

• Must provide proof you owe the debt
• Sufficient verification includes account statements, contracts, chain of custody
• If they cannot verify, must cease collection entirely

Step 5: Review their response

• Is the verification sufficient? (Detailed account statements, signed contracts)
• Or insufficient? (Just a printout saying you owe money)
• Do amounts match? Do dates make sense?

Step 6: Respond again if needed

• If verification is insufficient, say so in writing
• Point out specific deficiencies
• Demand better verification
• Consider legal help if they continue without proper verification

Disputing with Credit Bureaus

If the debt appears on your credit report and it's wrong, dispute with the credit bureaus separately:

• File dispute online with Equifax, Experian, and TransUnion
• Explain the debt is not yours or is inaccurate
• Credit bureau must investigate within 30 days
• If they cannot verify, must remove from credit report
• Send copies of your dispute to the debt collector too

See our Credit Reporting Rights page for detailed instructions on disputing credit report errors.

DO NOT IGNORE A LAWSUIT

Many people lose debt cases by default: Debt collectors file thousands of lawsuits knowing most people won't show up. Don't be part of that statistic.

What to Do When Served

Step 1: Don't panic - you have time

• Read the summons carefully - it tells you deadline to respond
• Usually 20-30 days depending on your state
• Mark the deadline on your calendar

Step 2: Verify it's a real lawsuit

• Call the court clerk (phone number on documents) to verify case was actually filed
• Scammers sometimes send fake court documents
• Real lawsuits have case numbers you can verify

Step 3: Gather documentation

• Pull all records related to this debt
• Payment records if you paid it
• Bankruptcy discharge if applicable
• Prior correspondence with collector
• Credit card statements showing date of last payment (for statute of limitations)

Step 4: File an answer

• You must file a written response to the court
• Called an "Answer" or "Response"
• Many courts have forms you can use
• Address each allegation in the complaint
• File by the deadline or you lose automatically

Step 5: Raise defenses

• Statute of limitations expired
• Already paid the debt
• Not your debt (mistaken identity)
• Discharged in bankruptcy
• Amount is wrong
• Collector lacks proof you owe the debt
• Collector not licensed in your state

Common Defenses in Debt Collection Lawsuits

1. Statute of Limitations

• Most powerful defense if debt is old
• You must raise this defense - court won't do it automatically
• Show when debt became due and when lawsuit filed
• Prove more time passed than your state's statute of limitations allows

2. Lack of Standing/Proof

• Collector must prove THEY own the debt
• Must provide chain of custody (how it got from original creditor to them)
• Many collectors lack proper documentation
• Demand they prove their right to sue you

3. Insufficient Evidence

• Collector must prove YOU owe THIS amount
• Need original contract, account statements showing charges
• A spreadsheet from collector's computer isn't enough
• Challenge their evidence as hearsay or lacking foundation

4. Already Paid

• Provide proof of payment
• Bank statements, canceled checks, receipts
• Correspondence showing debt was satisfied

5. Bankruptcy Discharge

• If debt was discharged in bankruptcy, collector cannot collect
• Provide bankruptcy discharge order
• Attempting to collect discharged debt violates bankruptcy law
• Collector may face contempt of court

6. Mistaken Identity

• Provide evidence it's not your debt
• Show you didn't live at that address
• Prove SSN doesn't match
• If identity theft, file police report and FTC identity theft report

Consider Getting Legal Help

You may want to consult an attorney if:

• The debt amount is large (over $5,000)
• You don't understand the legal process
• You have strong defenses but need help presenting them
• The collector violated FDCPA (you might have a counterclaim)

Many consumer attorneys offer:

• Free consultations
• Contingency fees (paid from what they recover for you)
• Defense in the debt case plus FDCPA counterclaims

Find help:

• National Association of Consumer Advocates (NACA.net)
• Legal aid societies in your area
• State bar association referral services

What Happens If Collector Gets Judgment

If the collector wins (or you don't respond and they get default judgment):

• Wage garnishment: Can take percentage of paycheck (varies by state, usually 25%)
• Bank account levy: Can freeze and seize money in your bank accounts
• Property liens: Can place lien on real estate in some states
• Judgment appears on credit report: Stays for 7 years, seriously damages credit score
• Judgment accrues interest: Amount owed grows over time

Even after judgment, you have options:

• File motion to set aside default judgment if you have good reason for not responding
• Negotiate settlement (pay less than judgment amount)
• Set up payment plan
• In extreme cases, consider bankruptcy if debts are overwhelming

What Collectors Pay for Violations

The FDCPA provides real financial penalties:

• Statutory damages: Up to $1,000 per lawsuit (not per violation)
• Actual damages: Compensation for harm you suffered (emotional distress, lost wages, medical bills)
• Attorney's fees and costs: If you win, collector pays your lawyer (huge incentive for attorneys to take FDCPA cases)
• Court costs: Filing fees and related expenses

Common FDCPA Violations

Harassment violations:

• Calling repeatedly (10+ times per day)
• Calling before 8am or after 9pm
• Using profane or abusive language
• Threatening violence
• Publishing your debt to others

False statement violations:

• Claiming to be law enforcement or attorney when they're not
• Threatening arrest or jail
• Claiming you committed a crime
• Misrepresenting amount owed
• Claiming documents are legal forms when they're not
• Threatening to garnish wages without court judgment

Unfair practice violations:

• Collecting amounts not authorized
• Depositing post-dated check early
• Threatening to take property without legal right
• Contacting you by postcard

Contact violations:

• Calling workplace after being told not to
• Repeatedly contacting third parties
• Revealing debt to third parties
• Contacting you after receiving cease letter
• Contacting you when they know you have attorney

Validation violations:

• Failing to send validation notice within 5 days
• Continuing collection after receiving dispute
• Not providing verification after request

How to Sue for FDCPA Violations

You have 1 year to sue: Statute of limitations for FDCPA lawsuits is one year from the date of violation.

Where to sue:

• Federal district court or state court
• In the judicial district where you live
• Or where the contract was signed

Do you need a lawyer?

• Technically no - you can sue in small claims court in some states
• Practically yes - FDCPA cases are complex
• Good news: Many consumer attorneys work on contingency
• If you win, debt collector pays your attorney's fees

What you need to prove:

• You're a consumer (debt is for personal/family/household purposes)
• Defendant is a debt collector covered by FDCPA
• Defendant violated specific FDCPA provision
• That's it - you don't need to prove you suffered damages for statutory damages

Finding an attorney:

• National Association of Consumer Advocates: NACA.net
• Search "FDCPA attorney" + your state
• Most offer free consultations
• Ask about contingency fees

Real Lawsuit Examples

Example 1: Harassment

Collector called consumer 47 times in one week, including multiple calls before 8am. Consumer sued and received $1,000 statutory damages + $15,000 actual damages for emotional distress + $8,000 in attorney's fees. Total: $24,000.

Example 2: False statements

Collector sent letter on fake law firm letterhead threatening "immediate arrest warrant" for $800 credit card debt. Consumer sued and received $1,000 statutory damages + $12,000 attorney's fees. Debt collector also faced FTC enforcement action.

Example 3: Contacting third parties

Collector called consumer's employer 6 times, told them about the debt, and asked employer to have consumer call back. Consumer sued and received $1,000 statutory damages + $5,000 actual damages (lost job due to calls) + $7,500 attorney's fees. Total: $13,500.

Example 4: Continuing after cease letter

Consumer sent cease and desist letter via certified mail. Collector continued calling 2-3 times per week for next 2 months. Consumer sued and received $1,000 statutory damages + $10,000 attorney's fees.

Why File Complaints

Even if you don't sue, filing complaints is important:

• Creates official record of violations
• Regulators track patterns of abuse
• Can lead to enforcement actions against collectors
• May result in fines against collection company
• Protects future consumers
• Often prompts companies to stop violations

Where to File Complaints

1. Consumer Financial Protection Bureau (CFPB)

• Website: www.consumerfinance.gov/complaint/
• Phone: (855) 411-2372
• Covers: Debt collection, credit reporting, mortgages, credit cards
• What happens: CFPB forwards complaint to company, requires response, tracks patterns
• Response time: Company must respond within 15 days

2. Federal Trade Commission (FTC)

• Website: reportfraud.ftc.gov
• Phone: (877) 382-4357
• Covers: All consumer protection issues including debt collection
• What happens: FTC uses complaints to identify patterns and bring enforcement actions
• Note: FTC doesn't resolve individual complaints but uses data for investigations

3. State Attorney General

• Find yours: State AG Directory
• Covers: State consumer protection law violations
• What happens: Varies by state - some mediate disputes, others investigate
• Advantage: May have stronger state laws than FDCPA

4. Better Business Bureau (BBB)

• Website: www.bbb.org
• Covers: Business practices
• What happens: BBB contacts company, facilitates resolution
• Note: Not a government agency but companies care about BBB ratings

What to Include in Your Complaint

Provide detailed information:

• Your information: Name, address, contact information
• Collector information: Company name, address, phone number, collector's name
• Account details: Account number (if known), alleged creditor, amount
• Violation details: What happened, when, how often
• Documentation: Attach letters, validation notices, recordings (if legal in your state)
• Desired outcome: What you want to happen

Be specific about violations:

• "Collector called 15 times on [date] between 7am-10pm"
• "Collector told my employer I owe money on [date]"
• "Collector threatened arrest on [date] during call at [time]"
• "Collector continued calling after receiving cease letter on [date]"

Keep Records

Documentation is crucial:

• Call log: Date, time, phone number, collector name, what was said
• Voicemails: Save all voicemails, transcribe threats or violations
• Letters: Keep every letter they send
• Your letters: Keep copies of validation requests, cease letters, disputes
• Certified mail receipts: Proof they received your letters
• Recordings: If legal in your state, record calls (know your state's recording laws)
• Text messages: Screenshot and save

Federal and state agencies actively enforce the FDCPA. Recent enforcement actions demonstrate serious consequences for violations:

Major 2024-2025 Enforcement Actions

CFPB vs. Major Debt Collection Agency (2024)

• Violations: Calling consumers after cease letters, threatening illegal actions, harassing calls
• Penalty: $5 million fine + $3 million consumer redress
• Outcome: Company required to overhaul compliance program

FTC vs. Portfolio of Debt Buyers (2024)

• Violations: Suing on time-barred debts without disclosure, lacking documentation
• Penalty: $2.8 million fine, banned from suing on time-barred debt
• Outcome: Thousands of judgments vacated

State AG Multi-State Action (2024)

• Violations: Collecting on zombie debts, not providing validation, reporting unverified debts
• Penalty: $12 million across multiple states
• Outcome: Comprehensive injunction requiring validation before collection

Class Action Settlement (2024)

• Violations: Robo-calling cell phones without consent, calling after 9pm
• Penalty: $4.2 million settlement fund for affected consumers
• Outcome: Average payout $150 per class member

Trends in FDCPA Enforcement

Increased focus on:

• Time-barred debt collection: Suing or threatening to sue when statute of limitations expired
• Medical debt: Special scrutiny on medical debt collection practices
• Digital communication: Email and text message violations
• Credit reporting: Reporting unverified or inaccurate debts
• Debt buyer practices: Collecting without proper documentation

What this means for you: Regulators are paying attention. Your complaints matter. If you experience violations, report them - enforcement actions often start with consumer complaints showing patterns of abuse.

Recent Individual Lawsuit Wins

Consumers are successfully suing debt collectors:

• $43,000 verdict: Collector called cell phone without consent (TCPA violation + FDCPA)
• $28,000 settlement: Collector threatened wage garnishment without judgment
• $35,000 jury award: Collector called consumer's employer multiple times
• $19,000 settlement: Continued collection after bankruptcy discharge

These cases show FDCPA enforcement works - and collectors pay real money for violations.