Debt Collectors Keep Calling? What You Can Legally Do

Debt collectors contact 70 million Americans every year. Most people hang up, panic, or pay without asking questions. That's what collectors count on.

You have specific legal rights when a collector calls. The Fair Debt Collection Practices Act (FDCPA) puts clear limits on what they can say, when they can call, and who they can contact. Many collectors ignore these rules because they assume you won't push back.

Here's what you can actually do.

You Can Force Them to Prove the Debt Is Real

A third-party debt collector contacts you. Maybe it's a debt you forgot about. Maybe it's one you never owed. You have 30 days from their first written notice to demand proof.

Send a debt validation letter. Ask for three things:

• The name of the original creditor
• The exact amount they claim you owe
• Proof they have legal authority to collect

Once you request validation, collection activity must pause until they provide documentation. Many collectors can't produce proper records, especially for older debts that have changed hands multiple times.

If they don't respond with adequate proof within 30 days, they're violating federal law. If they keep trying to collect without verification, you have grounds to file a complaint with the Consumer Financial Protection Bureau or sue under the FDCPA.

That 30-day window is firm. After it passes, your right to dispute weakens significantly. Mark your calendar the day you receive their first letter.

What Counts as Proper Validation

The collector must provide more than a printout with your name and a dollar amount. Look for:

• Account statements from the original creditor
• A signed contract or agreement showing you took on the debt
• A clear chain of custody if the debt was sold

If they send a vague letter saying "You owe $4,873 to ABC Collections for a credit card," that's not enough. Push back.

You Can Make the Calls Stop

Collectors can call you. They cannot harass you. The FDCPA prohibits "conduct the natural consequence of which is to harass, oppress, or abuse any person."

That includes:

• Calling before 8 a.m. Or after 9 p.m. In your time zone
• Calling repeatedly with the intent to annoy (think three calls in two hours)
• Using profanity or threats
• Refusing to identify themselves or the purpose of the call
• Calling your workplace after you tell them it's not allowed

If you want them to stop calling entirely, send a cease communication letter. Mail it certified with return receipt. Once they receive it, they can only contact you to confirm they're stopping or to notify you of specific legal actions like filing a lawsuit.

They don't have to agree. They just have to comply.

Document Everything

Keep a log. Date, time, caller name (if they give one), what was said. Save voicemails. Screenshot text messages. If they violate the FDCPA, this evidence becomes the foundation of your complaint or lawsuit.

You can sue a collector for FDCPA violations and recover up to $1,000 in statutory damages, plus actual damages and attorney fees. Collectors know this. Once you demonstrate you're tracking their behavior, many back off.

They Cannot Contact Your Family, Friends, or Boss (With Narrow Exceptions)

A collector calls your mother asking where you are. Or they phone your workplace and mention the debt to a coworker. Both scenarios violate federal law in most situations.

Debt collectors can contact third parties only to obtain your location information: your address, phone number, where you work. They cannot:

• Disclose that you owe a debt
• Contact the same person more than once (unless that person asks them to call back)
• Contact people at work to discuss your debt
• Send postcards or letters that reveal the debt to others

If your employer prohibits personal debt-related calls, tell the collector once. After that, any further workplace contact is illegal.

If a collector tells your sister you owe money, you can file an FDCPA complaint or sue. These privacy violations are taken seriously. Courts have awarded damages for exactly this kind of misconduct.

What If They Threaten to Sue or Garnish Your Wages?

Collectors can sue you. They cannot threaten to do so if they have no intention of following through. Empty threats are illegal.

If they say, "We're filing a lawsuit next week," and no lawsuit appears for months, that's a prohibited threat. If they say, "We'll garnish your wages," they can only do that after winning a judgment in court. A collector cannot garnish your wages simply because you owe a debt.

If you receive a summons or complaint, respond immediately. Ignoring a real lawsuit results in a default judgment, which gives them legal authority to garnish wages, freeze bank accounts, or place liens on property.

Not sure if the lawsuit is legitimate? Look up the case number with your county court. Debt collectors sometimes send fake legal documents hoping you'll panic and pay. If you can't find the case, it may not exist.

If you're served with a legitimate lawsuit and can't afford a lawyer, check if bankruptcy makes sense for your situation. Filing bankruptcy triggers an automatic stay, which halts all collection lawsuits immediately.

You Have the Right to Send a Payment Directly to the Original Creditor

Not widely known: if the debt hasn't been sold, you can often bypass the collector and pay the original creditor. Collectors working on commission hate this.

Check who actually owns the debt. If it's still with the original creditor (a hospital, credit card company, etc.), you can contact them directly to set up a payment plan. The collector may not have the authority to accept payment if they're just a third-party agency hired to collect.

You Can Negotiate, But Get It in Writing First

Collectors often settle for less than the full amount. Offer a lump sum of 30-50% of the balance, or negotiate a payment plan you can actually afford.

Once you agree to terms, get it in writing before you send money. The letter should state:

• The settlement amount or payment plan
• That paying this amount resolves the debt in full
• That they will not sell the remaining balance to another collector

Do not rely on a phone agreement. Collectors change their story. Once you pay without written confirmation, you lose leverage.

Beware the Tax Hit

If a collector forgives more than $600 of debt, they must report it to the IRS on Form 1099-C. That forgiven amount counts as taxable income. You may owe taxes on money you never actually received.

If that happens, you can file IRS Form 982 to exclude the canceled debt from income if you qualify (for example, if you're insolvent when the debt is forgiven).

The Statute of Limitations Limits How Long They Can Sue

Every state sets a deadline for how long a collector can file a lawsuit over unpaid debt. This is the statute of limitations, and it varies by state and debt type. In most states, it ranges from three to six years.

Once the statute of limitations expires, the debt becomes "time-barred." Collectors can still call and ask you to pay, but they cannot sue you in court.

If a collector threatens legal action on a time-barred debt, that's an FDCPA violation. If they do sue, you must respond and raise the statute of limitations as a defense. Ignoring the lawsuit won't make it go away, and the court won't dismiss it automatically.

Don't Restart the Clock

Making a payment or even acknowledging the debt in writing can restart the statute of limitations in some states. Before you pay anything on an old debt, check your state's rules. A $50 payment on a six-year-old debt might reset the clock and give the collector another six years to sue.

If They Break the Rules, You Can Sue Them

The FDCPA lets you sue a collector who violates your rights. You can recover:

• Actual damages (lost wages, therapy costs, etc.)
• Statutory damages up to $1,000 per lawsuit
• Attorney fees and court costs

You must sue within one year of the violation. Many consumer rights attorneys take FDCPA cases on contingency, meaning you don't pay upfront. The collector pays your attorney fees if you win.

Even if you don't sue, file a complaint with the Consumer Financial Protection Bureau (CFPB) and your state attorney general. Repeated violations can lead to investigations, fines, and enforcement actions.

What If the Debt Is Accurate and You Can't Pay?

You verified the debt. It's legitimate. You owe it. But you don't have the money.

You have options:

• Negotiate a settlement or payment plan. Collectors often accept less or stretch out payments.
• Work with a nonprofit credit counseling agency. They can sometimes negotiate lower interest rates or set up a debt management plan.
• Consider bankruptcy. Chapter 7 wipes out most unsecured debts. Chapter 13 lets you repay over three to five years under court protection.

If debt collectors are suing you or wages are being garnished, bankruptcy may stop the process immediately. It's not a moral failure. It's a legal tool designed to give people a fresh start.

Know When to Walk Away From a Debt

Not all debts are worth fighting or paying. If the debt is past the statute of limitations, the collector has no documentation, or your only income is Social Security (which is protected from garnishment in most cases), paying may not make sense.

Understand your full financial picture before you commit to a payment plan you can't sustain. Collectors will push for monthly payments you can't afford. Do the math first.

If you're judgment-proof—meaning you have no income or assets a collector can legally take,paying may only restart the clock or encourage more aggressive collection. Talk to a bankruptcy attorney before making that call.