Issued by the Federal Trade Commission
If you’re falling behind on your bill payments or a creditor incorrectly thinks you are, you might hear from a debt collector. The Federal Trade Commission (FTC), which protects consumers, enforces the Fair Debt Collection Practices Act. This law stops debt collectors from using abusive, unfair, or misleading methods to collect debts.
Debt collectors are defined broadly under this Act. They include collection agencies, lawyers who regularly handle debt collections, and companies that buy defaulted debts to collect them.
Here’s a Q&A about your rights under the Act:
**What types of debt does the Act cover?**
The Act covers personal, family, and household debts like credit card bills, car loans, medical bills, and mortgages. Business-related debts are not included.
**Can debt collectors contact me anytime or anywhere?**
No, they can’t. Debt collectors are not allowed to contact you at inconvenient times or places, such as before 8 AM or after 9 PM, unless you agree to it. They also shouldn’t call you at work if it’s not allowed.
**How can I stop a debt collector from contacting me?**
If a debt collector reaches out, it’s a good idea to talk to them at least once to try to resolve the issue. If you want them to stop contacting you, tell them in writing. Write a letter, keep a copy, and send it by certified mail with a return receipt. After they receive it, they should not contact you again except to inform you of no further contact or to notify you of a specific action like a lawsuit.
**Can a debt collector tell others about my debt?**
If you have a lawyer handling your debt, the collector should talk to your attorney. Without a lawyer, collectors can contact others only to find out your address, phone number, and where you work.
**What information must a debt collector provide about my debt?**
Debt collectors must send you a written “validation notice” within five days of their first contact. This notice should include details about the debt and the creditor.
**What are debt collectors not allowed to do?**
They are prohibited from harassment and making false statements. This includes using obscene language, making threats, or calling repeatedly to annoy you. They also can’t lie about who they are, like pretending to be attorneys or government representatives, or about the amount you owe.
**Can I choose which debts my payments go to?**
Yes, if a collector is trying to collect multiple debts, you can specify which debt your payment should apply to.
**Can my bank account or wages be garnished?**
If you fail to pay a debt, a creditor or collector can file a lawsuit against you. Wage garnishment, where your employer withholds part of your earnings to pay off the debt, usually requires a court order.
**Can federal benefits be garnished?**
Some federal benefits are protected from garnishment, but they may be garnished in cases of certain debts like overdue taxes, alimony, child support, or student loan debts.
**What should I do if a debt collector breaks the law?**
You can sue a debt collector in state or federal court if they violate the law.
**What should I do if a debt collector sues me?**
If you receive a lawsuit from a debt collector, respond to protect your rights and seek any available debt help resources.
**Where can I report a problematic debt collector?**
You can report issues with a debt collector to your state’s Attorney General’s office or the Federal Trade Commission.
For more detailed information, visit the FTC’s resources or MyMoney.gov, the U.S. government’s financial education hub.