7 Things Debt Collectors Aren’t Allowed To Do (No Matter How Much You Owe)
Written by
Jacob Wade
Edited by
Rebekah Evans
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If you’re behind on debt payments, your lender might send you to collections. And while the harassing phone calls and persistent tactics of some debt collectors can drive you mad — there are many restrictions on debt collection practices that can help lower your stress levels. Here are a few of the top things debt collectors cannot do when attempting to collect a debt from you.
Also here are top strategies to pay off your debt.
Not Providing Debt Verification
The first thing you should do if you’re contacted by a debt collector is to ask for verification that the debt is yours. You can request a debt verification letter and the Fair Debt Collection Practices Act (FDCPA) requires them to send you written verification of your debt within five business days.
While they are gathering information and sending it to you, they must cease debt collection practices — including calls. And if they refuse to send you verification, you do not have to respond to their requests for payment and can ask them to stop calling until you receive verification. You can also report them to the Consumer Financial Protection Bureau (CFPB).
Calling You at Weird Hours
The FDCPA stipulates that debt collectors are not allowed to call you before 8 a.m. or after 9 p.m. local time, unless you have explicitly given them permission to do so. You can also request that debt collectors do not call you at work and they must comply.
This rule is to protect your work and personal life from constant calls and helps keep peace in your life while you’re trying to sort out your debt payments. If a debt collector violates this rule, you can report them to the CFPB.
Harassment or Threats
Some debt collectors are known for being harsh on the phone or using threats to get you to pay your debt faster. But this is strictly prohibited under federal law. According to the FDCPA, debt collectors cannot “harass, oppress or abuse any person in connection with the collection of a debt.” Debt collectors also cannot publish your name in a list of persons that refuse to repay their debts.
If your debt collector threatens to shame you publicly, uses obscene language or calls repeatedly to annoy or harass you, you can report this behavior to the CFPB.
Violating State Laws
While the Fair Debt Collection Practices Act (FDCPA) is federal law, there may be additional state-specific laws that debt collectors must adhere to. For example, in Florida, state laws dictate that a debt collector cannot “simulate in any manner a law enforcement officer or a representative of any governmental agency” in order to collect a debt.
Lying To You
If your debt collector lies to you or provides false or misleading information to get you to pay a debt, this is illegal. This includes falsely claiming to be a lawyer or government representative and claiming that you have committed a crime or done something illegal by not repaying your debt. Behavior like this should be immediately reported to the CFPB.
Revealing Your Debt Information to Other Parties
Debt collectors have been known to reach out to friends or family to attempt to collect on a debt — but this practice is prohibited by law. Debt collectors cannot share information about your debts with anyone besides your spouse and maybe your attorney (if permission is granted). This is to protect your privacy.
Debt collectors may be able to contact friends and family in an attempt to get a hold of you — but cannot legally share any information about why they need to contact you.
Contacting You After You’ve Requested They Stop
You have the right to request that a debt collector stop contacting you — and they must comply. If you write a cease-and-desist letter to the debt collection agency, a debt collector can only contact you on the basis of specific actions (i.e. filing a lawsuit) or to simply notify you that they will no longer be contacting you. This is a surefire way to end harassing phone calls and allow you to put together a debt payoff plan of action.
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