FDCPA Violations: Know Your Rights and How to Report Harassment

The FDCPA is a federal law that protects you from debt collector abuse. It prevents third-party debt collectors from engaging in harassment or unfair collection practices.

Here are the six most common FDCPA violations:

• Attempting to collect debts you don’t owe
• Sending written notifications with insufficient debt information
• Taking or threatening illegal legal action
• Making false statements or misrepresenting themselves
• Engaging in harassment through repeated calls or abusive language
• Threatening to contact friends, family, or employers about your debt

What Is the Fair Debt Collection Practices Act?

The FDCPA is a federal law that prevents third-party debt collectors from harassment. It stops deceptive practices and unfair debt collection techniques.

The law protects you from abuse by debt collectors. It applies to consumer debts like credit card debt or medical bills.

The FDCPA does not apply to business debt.

Importantly, the FDCPA targets third-party debt collectors. It generally doesn’t apply to original creditors.

The Consumer Financial Protection Bureau (CFPB) helps oversee the FDCPA. The CFPB fields complaints about violations and helps resolve issues.

The CFPB’s most recent data shows consumers filed almost 122,000 debt collection complaints in 2021. Violations happen more often than you might think.

The Six Most Common FDCPA Violations

According to the CFPB’s 2022 report, here are the top violations:

• Debt collectors attempting to collect debts you don’t owe
• Debt collectors sending written notifications without enough information
• Debt collectors taking or threatening illegal action
• Debt collectors making false statements or misrepresentations
• Debt collectors engaging in harassment or using abusive language
• Debt collectors threatening to contact third parties about your debt

Watch for these violations and report collectors who engage in these practices.

Attempting To Collect Debts You Don’t Owe

56% of CFPB debt collection complaints involve collectors attempting to collect debts consumers don’t owe. It’s the number one complaint.

Here are common reasons people get contacted about debts they don’t owe:

• The debt resulted from identity theft
• The debt collector misidentified the debtor
• The debt was already paid off
• The debt was discharged in bankruptcy

If you receive calls demanding payment, verify the debt immediately. Don’t take their word for it.

Check your credit report regularly. If you see an unfamiliar debt or charge-off, research it and dispute the debt if you don’t owe it.

Not Enough Information on Written Notification

Under the FDCPA, debt collectors must provide written notification of the debt. They must send this validation notice before contacting you or within five days after first contact.

The notice must advise you of your legal right to dispute the debt within 30 days.

25% of complaints say consumers never received information about their right to dispute. 75% say the written notice was vague and didn’t include enough information.

If you receive a vague notice, know your rights and act fast. You can always send a debt verification letter requesting detailed information. If the details are incorrect, dispute it.

Threatening Illegal Action

Under the FDCPA, debt collectors can’t threaten you with illegal actions. Here are red flags that indicate the collector may be breaking the law:

• Threats about damage to your credit
• Threats to sue on an old debt past the statute of limitations
• Attempts to sue without proper notification
• Threats or attempts to illegally seize your property
• Threats to arrest or jail you
• Threats to garnish exempt funds like child support or unemployment benefits

Does the FDCPA Cover the Statute of Limitations?

The statute of limitations is a law that establishes the deadline for creditors to sue you for unpaid debt. Each state has its own statutes of limitations.

After the statute of limitations passes, the debt becomes time-barred. Debt collectors can no longer sue you to collect the debt.

Here’s the tricky part: You still owe the debt. The FDCPA doesn’t prohibit debt collectors from trying to collect time-barred debt.

Know your state’s statute of limitations for debt. If a collector threatens to sue you for time-barred debt, they’re likely violating the FDCPA. Some states require collectors to tell you if the statute has expired.

Making False Statements or Misrepresentations

Under the FDCPA, debt collectors must disclose who they are. They must tell you what debt they’re trying to collect.

They can’t make false statements or misrepresent themselves or your debt.

The most common violations in this category include:

• False representation about the amount of the debt (81%)
• Impersonation of an attorney, law enforcement officer, or government official (13%)
• Misrepresenting that you’re committing a crime by not paying (5%)

Unlawful Communication Tactics

Under the FDCPA, a debt collector cannot harass or abuse you. The most common complaints the CFPB received include:

• Frequent or repeated phone calls
• Continued contact after you requested they stop
• Use of profane, obscene, or abusive language
• Phone calls at unusual times, outside of 8 a.m. to 9 p.m. local time

Threatening To Contact Friends, Family, or Employers

It’s legal for a debt collector to call your friends, family members, or employer. But they’re limited in what they can say.

They can ask for your contact information. They can’t discuss your debt or harass your friends, family, or employer.

If the debt collector knows you’re represented by an attorney, they must contact your attorney directly. They can’t call you.

If you make a written request for debt collectors to stop contacting you, they must comply. Otherwise, they’re breaking the law.

How To Get a Debt Collector To Stop Contacting You

Under the FDCPA, you can send the debt collector a written request to stop all communication. The debt collector must honor that request.

Be specific about the ways you don’t want to be contacted. Debt collectors can legally contact you by phone, mail, email, and social media.

You can tell the debt collector to stop calling you on the phone. But be sure to follow up with a written request.

Use a cease and desist letter template to get started. Send the letter via certified mail and keep a copy for your records.

You’ll need this documentation if you want to file a complaint or sue the collector.

Important: You can stop a collection agency from calling you, but that doesn’t eliminate your debt. You have a right not to be harassed, but if you truly owe the debt, work out a repayment plan.

If you’re struggling to pay a debt in collections, explore your debt relief options. You can speak with a bankruptcy attorney for free to understand your options, including Chapter 7 or Chapter 13 bankruptcy.

What To Do if a Debt Collector Violates the FDCPA

Nobody should deal with a debt collector who violates the FDCPA. Unfortunately, as the CFPB statistics show, it happens frequently.

If you believe a debt collector is violating the law, start by filing a complaint with the CFPB. You can do this entire process online from home.

The CFPB handles many complaints directly. If your complaint is outside its purview, the CFPB may send it to the Federal Trade Commission (FTC).

The FTC has the right to enforce the FDCPA. It may take action against the lender based on your complaint.

Can You Sue a Debt Collector for Harassment?

Yes. Under the FDCPA, you have the right to sue debt collectors who violate the law.

You must file your lawsuit in federal court. You need to file the complaint within one year of the violation date.

Often, debt collectors who violate the FDCPA also break state laws. If a collector is violating state law, file a complaint with your state attorney general’s office.

What Is the Penalty for Violating the FDCPA?

If you win a lawsuit against a debt collector, they could be required to pay actual damages. That’s the amount of money you’ve lost.

For example, if the collector’s actions caused you to lose wages or pay more on your cellphone bill, they would cover those costs.

The debt collector could also pay up to an additional $1,000 in statutory damages. They may also pay your attorney fees.

If you think you have a case against a debt collection agency, consult with a debt collection attorney. Most offer free consultations.