What is the Fair Debt Collection Practices Act (FDCPA) and How Does It Protect You?

I’ve had a debt collector sent after me. When I rented my first apartment, I tried to set up the internet before moving into my new place. The internet company I used made a mistake and set up services at my old address, not my new one.

Once I moved into my new apartment, I switched services to the correct address. But unbeknownst to me, the internet company set up a cancellation bill on the account for my old place. And because that account technically no longer existed — they create a new account when you move states — I couldn’t access the account to dispute the bill. There was no record of it.

A few months later, I started getting almost daily calls from a debt collector. Because they were a third party, they didn’t care that the bill shouldn’t exist (and had no record) in the first place. I blocked every number that called, but there was always a new one.

The Fair Debt Collection Practices Act prevents debt collectors from abusing, deceiving, and mistreating consumers.

Eventually, the debt hit my credit, and I successfully disputed it with the credit bureaus. The debt collector sent me a letter offering for me to pay a reduced rate. I formally told them to stop contacting me, and I haven’t heard from them since.

Getting debt collection sent after me was scary, and the fear of financial repercussions weighed on me for several years. But without the Fair Debt Collection Practices Act (FDCPA), it could have been so much worse. 

The FDCPA is a piece of Federal Trade Commission legislation that prohibits debt collectors from using harassment, misrepresentation, and unfair practices against consumers. Debt collectors have a long history of abusive and even violent practices, so the FDCPA ensures that much of that is a thing of the past.

The FDCPA is meant to protect consumers. By definition, debt collection is about coercing people into paying money they don’t want to pay, whether it be because they were unfairly charged, they don’t have the money, or they simply don’t want to pay it. 

That can make it tempting for debt collectors to use questionable practices, necessitating strong government regulation.

Protecting Consumers from Harassment

If you’ve ever seen an old mob movie, you know that debt collection — at its most extreme — could turn violent. God forbid you get your knees broken by a loan shark or horse-betting bookie.

The FDCPA explicitly forbids any form of violence or criminal behavior to pressure or punish a consumer, including harming them, their property, or their reputation. 

Debt collectors are forbidden from using profane or abusive language to consumers. If a debt collector is making you cry, they’re likely violating the FDCPA.

They’re also forbidden from publishing lists of consumers who haven’t paid their debts or otherwise shaming them publically. They can, however, report this information to the credit bureaus, so be aware that debt will still hit your credit.

Debt collectors are also forbidden from calling repeatedly, essentially to annoy you. This one is harder to enforce, but technically, they shouldn’t be doing it.

Ensuring Accurate Information

Debt collectors can’t lie to you. If they do, they’re violating the FDCPA.

Most significantly, they can’t lie about who they are and what they have the power to do. They can’t pretend to be part of the government or that they are lawyers. They can’t inaccurately tell you that you’ll go to jail or face criminal charges for nonpayment.

Debt collectors can’t pretend that they’re calling you about something else and then use the information they obtain to continue trying to collect. They have to disclose who they are, what they want, and what they’ll do with the information they get from you.

They also can’t lie to you about what you owe. Pay attention to inconsistencies in what they’re trying to get from you. If they say you owe far more than you do, it may be time to get an attorney and go on the offensive.

Promoting Fair Treatment

While any of the aforementioned banned practices are pretty unfair, the FTC specifically bans certain unfair practices that aren’t necessarily abuse or deceit.

• Debt collectors can’t decide you owe any random amount. If you have a $20 debt, it would be pretty absurd to charge you $20,000. They aren’t allowed to collect more than the amount specified in the original contract that created the debt, or specifically allowed by law.
• They also aren’t allowed to ignore postdates on checks or to cash them without notifying the consumer. So if you write a check to be cashed after you get paid on the 15th of the month, the debt collector can’t cash it on the 13th.
• Lastly, debt collectors can’t take your property without a clear, legal right to it. Just because you have a debt doesn’t mean debt collectors can take your home, your car, or any other property. But again, if they threaten to take these things away, you may want to get your lawyer involved.

Know your rights when it comes to fair debt collection practices.

You’ve got a debt collector coming after you. Now what? As an average person facing up against an often mysterious financial organization, you may feel like you have no options to protect yourself other than paying up, potentially taking on more debt to do so. 

But the FDCPA doesn’t just tell debt collectors what they can’t do; it also highlights some of the ways consumers could protect themselves against unfair practices: 

• You have the right to dispute debts: Within five days of initially contacting you, the debt collector must send a written notice outlining your debt, your creditor, and the process for disputing debt. Once you get that letter, you have thirty days to officially dispute your debt. Once you begin this process, the debt collector has to stop contacting you until your dispute is denied or otherwise settled.
• You have the right to request validation of your debt: Debt collectors can seem suspicious, and there are A LOT of financial scams to watch out for. You have the right to request more information from the debt collector, whether that be further information about the creditor or initial creditor or more information about the debt collection agency itself.
• You have the right to limit contact with a debt collector: You can write a letter formally telling the debt collector to cease contact, and they must stop. The only times after this that they can contact you are to tell you that they have decided to stop pursuing the debt or to tell you that they are pursuing a new course of action against you.

Additionally, if they are aware that you have a lawyer, debt collectors should not communicate with you directly.

The FDCPA is pretty clear about what debt collectors can and cannot do. Without clear guidelines, it’s fair to assume that certain questionable debt collectors would bend the rules to justify using scary or even violent means to get their money from you. 

Now, there are a few questions about what constitutes an acceptable means to take against a consumer.

No Threats or Violence

Debt collectors cannot use or threaten violence to collect on a debt. 

When debtors won’t (or can’t) pay, lenders may try to add some pressure to scare them into paying up. For those who aren’t concerned about their credit, lenders might want to threaten something more physical — their personal safety. 

The FDCPA prevents that from happening legally, allowing debtors to advocate for themselves in case of danger.

No Misrepresentation

Debt collectors cannot lie about who they are or how much you owe. 

If a debt collector is coming after your money, they will pursue you aggressively. They may contact your family or place of work to get more information, but they can’t lie about why they’re calling. This protects you or your community from giving up sensitive information involuntarily.

Debt collectors cannot lie about who they are or how much you owe.

When you enter into a contract on a purchase or subscription, there is a set amount that you owe and that, should you fail to pay, a debt collector can pursue. A debt collector cannot lie about this amount or make up a number arbitrarily to take more money from you.

That being said, you shouldn’t assume that anyone who claims to be a debt collector is telling the truth — debt collection scams do happen. It’s important to ask for verification of any information you get and, when possible, to contact an attorney before paying a third party.

No Unjustifiable Contact

It may feel like all contact is excessive when a debt collector is coming after you, but the FDCPA outlines what’s kosher and what isn’t.

Debt collectors cannot call you at unusual hours — before 8 AM or after 9 PM. If you tell them that you can’t receive calls at a specific time or place, like your work, they must respect that.

They’re all barred from calling you unnecessarily. While this is harder to pin down, according to the Consumer Financial Protection Bureau, this is generally considered to be more than seven times in a seven-day period, or within seven days after making contact with you.

If your rights are violated, don’t panic. Follow these steps to ensure that you protect yourself and benefit from the regulations of the FDCPA.

1. Document the violation: First things first: document the violation. Keep any letters or emails you receive and make a note of the way in which their contact violates the FDCPA. If you send any communication, keep a record of what you send. Document any violations of the FDCPA and keep any communication from the debt collector. If you’re in a one-party consent state, record calls with the debt collector. Either way, keep a record of the frequency of the calls. Note any way they violate your rights.
2. File a complaint with the CFPB: It’s time to file a complaint with the Consumer Financial Protection Bureau (CFPB), the Fair Trade Commission (FTC), or your state attorney general. Make sure to submit all materials you have and to check on the status of your complaint periodically.
3. Know when to seek legal help: If you fear for your personal or financial safety, consider seeking legal help. Debt collectors can sue for your debts. If you receive notice that a lawsuit is being pursued, find a lawyer fast. You can find a lawyer in your area through the American Bar Association.

If you decide to pursue a lawsuit based on your complaint, you should look for a lawyer to better handle your case. Check out the National Association of Consumer Advocates to find the best lawyer for your case.

There are so many reasons that you can find yourself in debt or fighting debt. Whether you’re the victim of predatory business practices or simply finding yourself in hard times, going into debt isn’t a moral failing or something to be ashamed of. 

Debtors and those disputing debts should be treated with respect. The FDCPA helps debtors maintain their rights and avoid living a life of fear as they navigate their financial difficulties. 

If you feel your rights have been violated by a debt collector, don’t suffer in silence. The FTC is advocating for consumers, and they want to help.