Your Rights When Debt Collectors Call: What They Can and Can't Do

A debt collector called you 11 times yesterday. They threatened to garnish your wages, told your boss about the debt, and called you a deadbeat. That's illegal.

The Fair Debt Collection Practices Act (FDCPA) sets clear boundaries on what debt collectors can and cannot do. Third-party collectors who buy your debt or work on commission must follow these rules. The penalties for violations are real: you can sue for up to $1,000 per violation, plus attorney fees. Many lawyers take these cases on contingency, meaning you pay nothing upfront.

Here's what you need to know to protect yourself.

Who the FDCPA Covers (and Who It Doesn't)

The FDCPA applies to third-party debt collectors. That includes collection agencies, debt buyers who purchase charged-off accounts, and lawyers who regularly collect debts. If a company bought your $3,000 credit card debt from Capital One for $300, they're covered.

Original creditors calling about their own debt are not covered. If Chase is calling about your Chase card, the FDCPA doesn't apply. However, many states have their own consumer protection laws that do cover original creditors. Check your state attorney general's website for specifics.

Business debts aren't covered either. The FDCPA only protects consumer debts: credit cards, medical bills, car loans, mortgages, student loans. If you borrowed money for your LLC, you're on your own.

When Collectors Can Contact You

Debt collectors can call between 8 a.m. And 9 p.m. In your time zone. Not theirs. If you're in California and they're in New York, they can't call you at 6 a.m. Pacific just because it's 9 a.m. Where they are.

They can contact you at work unless you tell them your employer doesn't allow it. Once you say that, they must stop. Put it in writing to create a paper trail.

After you send a written cease contact letter, they must stop all communication except to confirm they received your letter or to notify you of specific actions like filing a lawsuit. Use certified mail with return receipt. Keep a copy for your records.

What Collectors Cannot Do

These actions are explicitly banned under the FDCPA:

• Threaten violence or harm. This includes threats to your reputation. If they say they'll tell your Facebook friends about the debt, that's illegal.
• Use obscene or profane language. Name-calling, insults, and verbal abuse are prohibited.
• Call repeatedly to harass you. What counts as "repeatedly" depends on context, but courts have found seven calls in one day excessive.
• Claim to be law enforcement or government officials. They can't say they're from the sheriff's office or imply they have arrest powers.
• Threaten actions they can't or won't take. If they say they'll garnish your wages but have no intention of suing you, that's a false threat.
• Discuss your debt with third parties. They can contact your employer only to verify employment. They can't tell your boss, your spouse, or your neighbor about the debt.
• Contact you after you've requested they stop. Once you send a cease contact letter, communication ends except for specific legal notices.

Collectors also can't lie about how much you owe, add unauthorized fees, or claim your debt is a criminal matter. Medical debt can't be threatened with jail time. Credit card debt isn't a crime.

Validating the Debt

Within five days of first contacting you, collectors must send a written validation notice. This document must include the amount owed, the creditor's name, and a statement of your right to dispute the debt.

You have 30 days from receiving that notice to request debt validation. Send a letter asking for proof you owe the debt. During this validation period, they must stop collection efforts until they provide adequate verification.

Request specific documentation: the original contract with your signature, an account statement showing charges, proof they own the debt. Many collectors can't produce this, especially for old debts that have been sold multiple times. If they can't validate, they must stop trying to collect.

Sample Debt Validation Letter

Keep it simple:

"I am requesting validation of the debt you claim I owe. Please provide documentation proving I am obligated to pay this amount and that you have the legal right to collect it. Until you provide this validation, cease all collection activities. This is not an acknowledgment that I owe this debt."

Send via certified mail. Keep the tracking number and the return receipt.

What You Can Do When They Break the Rules

Document everything. Keep a log of every call: date, time, caller's name, what they said. If they threaten you, write down the exact words. Save voicemails. Print emails.

File a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB tracks patterns of abuse and can take enforcement action against repeat offenders.

Report them to your state attorney general. Many states have consumer protection divisions that investigate debt collection complaints.

Sue them. You can recover up to $1,000 per violation in statutory damages, plus any actual damages (like lost wages if their harassment caused you to miss work), plus attorney fees. Many consumer rights attorneys work on contingency. You don't pay unless you win.

One violation might not seem worth the effort, but if they called you 20 times in a week, threatened to garnish wages they can't touch, and told your sister about your debt, that's multiple violations. The damages add up.

Special Protections for Specific Debts

Medical debt has extra protections. As of 2023, the three major credit bureaus don't report medical debts under $500. Paid medical debts are removed immediately rather than staying on your report for years.

Student loan debt has different rules depending on whether it's federal or private. Federal loans have income-driven repayment options and forbearance programs. Private student loans don't, but they're still subject to FDCPA rules if a third party is collecting.

Mortgage debt and car loans are secured debts. Collectors can repossess your car or foreclose on your house if you default, but they still can't harass you or lie about the process. They must follow state-specific foreclosure and repossession laws.

When Collectors Threaten to Sue

Debt collectors can sue you. That threat isn't illegal if they actually intend to do it. But if they threaten a lawsuit every month for two years and never file, that's a false threat and violates the FDCPA.

If you get sued, respond. Many people ignore debt collection lawsuits, and collectors win by default. Once they have a judgment, they can garnish wages, freeze bank accounts, and put liens on property in most states.

Check the statute of limitations. Each state sets a deadline for how long creditors can sue over a debt. In California, it's four years for credit card debt. In Ohio, it's six years. If the debt is past the statute of limitations, you have an absolute defense. The case should be dismissed.

Time-barred debts can still be collected, but not through a lawsuit. If a collector sues over a debt past the statute of limitations, that's often considered an unfair practice. You can raise this as a defense and potentially countersue under the FDCPA.

Bankruptcy Stops Collection Calls Immediately

When you file bankruptcy, an automatic stay goes into effect. All collection activity must stop. Calls, letters, lawsuits, wage garnishments—everything halts the moment you file.

Collectors who continue calling after you file commit a serious violation. Tell them you filed bankruptcy and give them your case number. If they call again, report them to the bankruptcy court. Judges take violations of the automatic stay seriously.

Chapter 7 bankruptcy wipes out most unsecured debts in about four months. Credit card debt, medical bills, personal loans,gone. You can learn more about filing bankruptcy and whether it's right for your situation.

If you're not sure bankruptcy is the right move, use our bankruptcy screener to see if you qualify and what you might eliminate.

Your Credit Report and Debt Collection

Collectors must report accurate information to credit bureaus. If they report you're 120 days late when you're actually 90 days late, dispute it. If they report a debt you don't owe or one you already paid, dispute it.

You're entitled to one free credit report per year from each of the three major bureaus through AnnualCreditReport.com. Pull all three. Check for errors. Dispute anything inaccurate in writing.

Negative items stay on your report for seven years from the date of first delinquency. Bankruptcies stay for seven years (Chapter 13) or ten years (Chapter 7). After that, they must be removed. If they're not, dispute them.

State Laws May Offer More Protection

Many states have consumer protection laws stronger than the FDCPA. California's Rosenthal Fair Debt Collection Practices Act covers original creditors, not just third-party collectors. New York's debt collection rules require collectors to provide more detailed validation information.

Check with your state attorney general or a local consumer rights attorney. You may have additional rights beyond federal law.

The Bottom Line

Debt collectors must follow the rules. When they don't, you have real legal remedies. Document violations, demand validation, and fight back when they cross the line. You're not powerless, even when you owe the money.