Consumer Tips

Laws That Protect Consumers From Debt Collectors

Gerri Detweiler

April 9, 2015

You have rights, and it is important to understand how debt collection laws can protect you against unfair collection tactics. The Fair Debt Collection Practices Act (FDCPA), a federal debt collection law, in addition to state statutes provides the following consumer protection:   

1. Harassment by debt collectors is against the law. 
   Collectors cannot threaten violence; use profanity, or racial or ethnic slurs when they talk with you; call you repeatedly to annoy you; or threaten to take legal action they can't legally take. Whenever you speak with a debt collector, take notes of your discussion, and keep them in a file with copies of any letters you receive from them.
2. You can stop debt collectors from contacting you at work. 
   If you tell a debt collector that your employer does not allow you to take collection calls at work, they must stop contacting you there immediately.  
3. Your debt is a private matter. 
   Other than a cosigner, your spouse, or your attorney--debt collectors cannot discuss your debt with third parties. That means they cannot tell your neighbors or coworkers about your debt. They can attempt to locate you by contacting others (without disclosing they are collecting a debt); however, once they've found you they must stop contacting the other individuals.
4. States have their own protection laws. 
   In addition to the federal law, states have their own laws related to debts and debt collection. State debt collection laws put a time limit on collecting debts. Each state has a "statute of limitations" that essentially determines how long a debt collector can sue to collect. This time period is usually between 4 and 6 years from the time you stop paying on the debt.