Debt Collection FAQs

What To Know About Debt Collection

What types of debts are covered under the law?

Your credit card debt, auto loans, medical bills, student loans, mortgage, and other household debts are covered under the FDCPA. Business debts are not.

Can debt collectors contact me at any time or place?

No. Debt collectors can’t contact you before 8 a.m. or after 9 p.m., unless you agree to it. They also can’t contact you at work if you tell them you’re not allowed to get calls there.

How can a debt collector contact me?

Debt collectors can call you, or send letters, emails, or text messages to collect a debt.

How can I stop a debt collector from contacting me?

Mail a letter to the collection company and ask it to stop contacting you. Keep a copy for yourself. Consider sending the letter by certified mail and paying for a “return receipt.” That way, you’ll have a record the collector got it. Once the collection company gets your letter, it can only contact you to confirm it will stop contacting you in the future or to tell you it plans to take a specific action, like filing a lawsuit. If you’re represented by an attorney, tell the collector. The collector must communicate with your attorney, not you, unless the attorney fails to respond to the collector’s communications within a reasonable time.

Consider talking to the collector at least once, even if you don’t think you owe the debt or can’t repay it immediately. That way, you can get more information about the debt and confirm whether it’s really yours. To avoid debt collection scammers, be careful about sharing your personal or financial information, especially if you’re not already familiar with the collector. Not everyone who calls saying that you owe a debt is a real debt collector. Some are scammers who are just trying to take your money.

Can a debt collector contact anyone else about my debt?

A debt collector generally cannot discuss your debt with anyone but you or your spouse. If an attorney is representing you, and you’ve told the collector, the debt collector must contact the attorney. A collector can contact other people to find out your address, your home phone number, and where you work, but usually can’t contact them more than once, and cannot tell them you owe a debt.

What does the debt collector have to tell me about the debt?

A collector has to give you “validation information” about the debt, either during the collector’s first phone call with you or in writing within five days after first contacting you. The collector has to tell you four pieces of information

• how much money you owe
• the name of the creditor you owe it to
• how to get the name of the original creditor
• what to do if you don’t think it’s your debt

What if I don’t think I owe the debt?

If you don’t recognize a debt, send the debt collector a letter, and ask for verification of the debt. Once you get the validation information, if you don’t recognize a debt, or don’t think the debt is yours, send the debt collector a dispute letter saying you don’t owe some or all of the money, and ask for verification of the debt. Make sure to send the dispute letter within 30 days. Once the collection company receives the letter, it must stop trying to collect the debt until sending you written verification of the debt, like a copy of the original bill for the amount you owe. Consider sending your letter by certified mail and requesting a return receipt to show that the collector got it. Keep a copy of the letter for your records.

What are debt collectors not allowed to do?

Collectors can’t harass you. For example, collectors

• can’t threaten to hurt you
• may not use obscene or profane language
• can’t repeatedly use the phone to annoy or harass you

Collectors can’t lie. For example, collectors

• cannot tell you that you owe a different amount than what you actually owe
• may not pretend to be an attorney or from the government
• can’t tell you that you’ll be arrested, or claim they’ll take legal action against you if it’s not true

Collectors can’t treat you unfairly. For example, collectors

• may not try to collect interest, fees, or other charges on top of the amount you owe, unless the original contract or a law says they can
• can’t deposit a post-dated check early
• cannot publicly reveal your debts, including by sending postcards or putting information on envelopes

Can I control which debts my payments apply to?

Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you choose. A debt collector can’t apply a payment to a debt you say you don’t owe.

What should I do if a debt collector sues me?

If a debt collection lawsuit is filed against you, you’ll want to respond by the date specified in the court papers. And you can respond either personally or through your attorney. That will preserve your rights. Don’t ignore the lawsuit. To learn more, read What To Do if a Debt Collector Sues You.

Can a debt collector take money from my paycheck?

Yes, but the collector must first sue you to get a court order — called a garnishment — that says it can take money from your paycheck to pay your debts. A collector also can seek a court order to take money from your bank account. Don’t ignore a lawsuit, or you could lose the chance to fight a court order.

Can my federal benefits be garnished?

If you have an unpaid debt, a creditor or the debt collector it hires may get a court order to try to take money from your bank account to pay the debt. The court order is called a garnishment.

Many federal benefits are generally exempt from garnishment, except to pay delinquent taxes, alimony, child support, or student loans. States have their own laws about which state benefits can be garnished.

Federal benefits that are generally exempt from garnishment (except to pay delinquent taxes, alimony, child support or student loans) include:

• Social Security benefits
• Supplemental Security Income benefits
• Veterans benefits
• Federal student aid
• Military annuities and survivors’ benefits
• Benefits from the Office of Personnel Management
• Railroad retirement benefits
• Federal emergency disaster assistance