Fair Debt Collection Laws and Consumer Protections

In the United States, the Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive, deceptive, and unfair debt collection practices. This law applies to original creditors as well as third-party debt collectors.

The FDCPA prohibits debt collectors from contacting consumers at inconvenient times, such as before 8 am or after 9 pm, unless the consumer agrees to it. This means you can't be woken up in the middle of the night by a debt collector.

Debt collectors are also not allowed to harass or oppress consumers, which can include repeatedly calling or sending letters to try to collect a debt. They must give you a clear and specific statement of the debt, including the amount owed and the name of the creditor.

Debt collectors are regulated by laws that protect consumers from unfair practices. They can't file a complaint against you, according to the Texas Debt Collection Act.

Debt collectors can't take your home or wages for most debts. If your residence is a homestead, it's protected from being taken to pay a debt, except for certain types of debt like mortgages or taxes. Wages can only be garnished for debts related to child support, back taxes, or defaulted student loans.

Debt collectors can't call you at work if they know your employer doesn't allow it. They also can't call you before 8:00 a.m. or after 9:00 p.m. unless they know that's a more convenient time for you.

Debt collectors can't use unfair or unconscionable means to collect a debt. This includes harassing, oppressing, or abusing you. If you're being subjected to these tactics, you can notify the collector in writing and ask them to stop contacting you.

Here are some specific things debt collectors can't do:

Disputing a debt can be a straightforward process, but it's essential to follow the rules to protect yourself.

If a debt collector contacts you about a debt you don't owe, you must respond in writing to dispute the debt. This will help prevent the debt collector from continuing to contact you.

To dispute a debt, you should send a written notice to the debt collector within 30 days of when they first contacted you. You can dispute a debt if you don't owe it, if you've already paid it, if you want more information, or if you want the debt collector to stop contacting you.

Here are the specific situations in which you should dispute a debt:

To dispute a debt, you should send a letter by certified mail with a return receipt, and keep a copy of the letter and receipt. This will ensure that the debt collector receives your notice and can't claim they didn't receive it.

The debt collector then has 30 days to determine whether the disputed item is correct or not. If it's correct, they can continue collection activities. If it's incorrect, they must correct it and notify anyone who received a report containing the incorrect item.

Debt collectors are not allowed to contact you at unusual times or places, such as before 8 a.m. or after 9 p.m. without your consent.

If you're represented by an attorney, debt collectors must communicate with your attorney, not you, unless your attorney fails to respond within a reasonable time or gives consent.

Debt collectors can't contact your employer to collect a debt, except to verify your employment, get your location information, or garnish your wages after a court judgment.

You can request that debt collectors stop contacting you via a specific method, such as phone calls or texts, and they must comply.

Debt collectors can't contact your family, neighbors, or other people about your debt, except to get your location information, with a court's permission, or after a court judgment.

You have the right to demand that debt collectors terminate all further communications in writing, and they must comply.

Debt collectors must notify you in writing about your right to challenge the validity of a debt and provide other basic information in their first communication.

Here are some examples of when debt collectors can contact you:

And here are some examples of when debt collectors can't contact you:

Debt collectors must follow strict guidelines to avoid engaging in unfair or unconscionable practices. Unfair practices include collecting any amount not expressly authorized by the agreement creating the debt or permitted by law.

Debt collectors are prohibited from using postdated checks or other postdated payment instruments without proper notification. They must notify the consumer in writing of their intent to deposit such a check or instrument not more than ten nor less than three business days prior to such deposit.

Debt collectors cannot threaten to take your home or garnish your wages unless you have defaulted on a mortgage, home equity loan, or certain taxes. If a debt collector threatens to take your home or garnish your wages, it may be a debt collection scam.

The Fair Debt Collection Practices Act prohibits debt collectors from contacting you before 8:00 a.m. or after 9:00 p.m. unless they know or have reason to know that such times are more convenient for you.

Debt collectors must notify you in writing of their intention to deposit a postdated check or other postdated payment instrument. They must also provide you with information about your right to dispute the debt.

Debt collectors are prohibited from using abusive collection tactics, including threatening violence or other criminal acts, using profane or obscene language, and falsely accusing you of fraud or other crimes.

Here are some examples of unfair or unconscionable practices:

If you are being subjected to harassing, abusive, or fraudulent debt collection tactics, you have the right to demand that the collector terminate all further communications. You must make this demand in writing and keep a copy of your letter.