Your rights with debt collectors (FDCPA)

Federal law gives you real rights when a debt collector contacts you. Under the Fair Debt Collection Practices Act (FDCPA) and its rules, known as Regulation F, a collector must tell you about the debt in writing, give you about 30 days to dispute it, contact you only at reasonable times (generally 8 a.m. to 9 p.m. your local time), and never harass, threaten or lie to you. If a collector breaks these rules, you can report it, and you may be able to sue for actual damages plus up to $1,000.

Who the FDCPA covers

The FDCPA applies to:

• collection agencies collecting debts for someone else
• debt buyers that purchase old debts and collect them
• lawyers and law firms that regularly collect consumer debts

It covers personal, family and household debts, such as credit cards, medical bills, car loans, private student loans, mortgages and utility bills. It does not cover business debts.

The FDCPA generally does not apply to the original lender collecting its own debt, such as your credit card company calling about a late payment. Many states have their own collection laws that do cover original creditors, so rules vary by state. Other federal laws still apply to original creditors, including bans on unfair and deceptive practices.

The validation notice

A collector must send you a "validation notice" in its first communication or within 5 days after it. Under Regulation F, the notice must include:

• the collector's name and mailing address
• the name of the creditor you owed on a specific reference date, and the current creditor
• an account number, if there is one
• an itemization of the debt since that date - interest, fees, payments and credits
• the current amount the collector says you owe
• the date your validation period ends, and how to dispute the debt
• a reference to the CFPB's website, where you can learn more about your rights

Read it carefully. If you do not recognize the creditor, or the amount is wrong, that is a reason to dispute. The Consumer Financial Protection Bureau (CFPB), the federal regulator, has a sample of what the notice looks like in its debt collection resources.

Your 30-day window to dispute

The validation notice gives you a dispute deadline - at least 30 days after you receive it. If you dispute the debt in writing within that window, or ask for the name and address of the original creditor, the collector must stop collecting until it sends you verification of the debt.

You can still dispute after the window closes, and the collector cannot ignore it. But the requirement to pause collection only applies to disputes made within the window. That is why it pays to respond quickly. Our debt validation letter guide includes a fill-in template.

When and how collectors can contact you

What collectors cannot do

The FDCPA bans harassment, false or misleading statements and unfair practices. A collector cannot:

• threaten violence or harm, or use obscene or profane language
• call repeatedly to annoy or wear you down
• pretend to be a lawyer, a government agency or a credit bureau
• lie about how much you owe or whether the debt is yours
• say you will be arrested or jailed for not paying - not paying a consumer debt is not a crime
• threaten to sue, garnish your wages or take property when it cannot legally do so or does not intend to
• add interest, fees or charges that your agreement or the law does not allow
• report information it knows or should know is false to a credit bureau, or fail to say that a debt you disputed is disputed
• report a debt to a credit bureau before it has contacted you about it
• deposit a postdated check early, or threaten to
• use a postcard or an envelope that shows it is about a debt

Old debts and time-barred debt

Every state sets a time limit, called a statute of limitations, for suing over a debt. It is often between 3 and 6 years, but some states allow longer, and it can depend on the type of debt. Once that time has passed, the debt is "time-barred".

• Regulation F bans collectors from suing you or threatening to sue you over a time-barred debt.
• In many states a collector can still ask you to pay a time-barred debt voluntarily.
• In some states, making a payment or acknowledging the debt in writing can restart the clock. Talk to legal aid or a consumer attorney before paying anything on a very old debt.
• If you are sued over an old debt, you usually have to raise the statute of limitations yourself as a defense. The court may not do it for you.

The time a debt can stay on your credit report is separate. Most negative items come off 7 years after the original delinquency, and paying or being contacted by a new collector does not restart that.

How to report a violation

1. Write everything down. Note the date, time, phone number, the caller's name and company, and what was said. Keep letters, voicemails, emails, texts and screenshots. Laws on recording calls vary by state.
2. Tell the collector in writing. Describe the problem and keep a copy. Sometimes that alone stops it.
3. File a complaint with the CFPB. Submit it at consumerfinance.gov/complaint. The CFPB sends it to the company for a response. See how to file a complaint against a company.
4. Report it to the FTC and your state. Use reportfraud.ftc.gov and contact your state attorney general, which may also license collectors.
5. Talk to a consumer attorney. Many handle FDCPA cases without charging you up front, because the law makes a collector that loses pay your attorney's fees.

What you can recover

If a collector violates the FDCPA, you can sue in federal or state court. If you win, you may recover:

• actual damages, such as lost wages, medical bills or emotional distress caused by the violation
• additional statutory damages of up to $1,000 per lawsuit, even without proving financial loss
• your attorney's fees and court costs

You generally must sue within one year of the violation. This is general information, not legal advice - a consumer attorney or legal aid office can tell you whether you have a case.

Questions and answers