What Can Debt Collectors Do Within the Law

Debt collectors are bound by laws that protect consumers from harassment and unfair practices. They can contact you by phone, email, or mail to collect a debt.

Debt collectors can send you a written notice, known as a validation notice, within five days of their initial contact. This notice must include the amount of the debt, the name of the creditor, and a statement that unless you dispute the debt within 30 days, it will be assumed you owe it.

Debt collectors can also send you a copy of any lawsuit they file against you, as well as a notice of any judgment entered against you.

Some debt collectors are real and act on behalf of the company you owe money to. They're hired by creditors to recover payments on delinquent accounts.

Debt collectors can include collection agencies, attorneys, creditors collecting for someone else, creditors collecting under another name, and others.

Under the Fair Debt Collection Practices Act (FDCPA), creditors collecting for themselves are not considered debt collectors. This means they're not bound by the same rules as other debt collectors.

Debt collectors must obtain a license from the relevant state authority, such as the Department of Labor in Maryland. You can check a collection agency's license status through NMLS.

In Texas, debt collectors are prohibited from using certain tactics, including falsely accusing you of a crime, using profane or obscene language, and misrepresenting that their communications are coming from an official government source.

Here are some key laws that regulate debt collectors:

In Maryland, collection agencies must obtain a license from the Department of Labor, Office of Financial Regulation. You can check a collection agency's license status through NMLS, a multistate platform for licensing.

If you suspect a business is operating as an unlicensed collection agency, it's best to contact an attorney. Any judgments obtained by an unlicensed business are void and can be challenged at any time.

In Maryland, unlicensed collection agencies can't enforce judgments, so it's essential to verify a collection agency's license status before dealing with them.

Federal law provides significant protections for consumers dealing with debt collectors.

Under the Fair Debt Collection Practices Act, third-party debt collectors cannot use profane or obscene language. They also cannot threaten you with violence or other criminal acts.

Debt collectors are prohibited from contacting people on social media in a way that can be seen by the public or the person's contacts. They also cannot use "false, deceptive, or misleading representations" to contact you about a debt.

Here are some specific rules debt collectors must follow when contacting people through social media:

Debt collectors must also follow certain rules when contacting you directly, such as not contacting you at inconvenient times or places, not contacting your employer, and not harassing or abusing you.

Disputing Debt can be a straightforward process if you know the right steps. You must give the debt collector written notice if you dispute the legitimacy of something in your debt collector's file.

This notice should be sent by certified mail (with "return receipt requested") so you know it was officially received by the collector. The collector then has 30 days to determine whether or not the disputed item is correct.

If the disputed item is incorrect, the debt collector must correct it and notify anyone who received a report containing the incorrect item. If the collector can't determine the accuracy of the item within 30 days, they must make the change you requested and notify anyone who received a report containing the incorrect item.

To dispute debt effectively, it's essential to know what you owe. You can request a free annual credit report to learn more about your debts and identify any false, outdated, or inaccurate entries.

Here are the key steps to dispute debt:

If you dispute a debt, you must give the collector written notice. This can be done by sending a letter, but it's a good idea to send it by certified mail with "return receipt requested" so you know it was officially received.

Simply calling the collector won't stop them from continuing collection activities. You need to put your dispute in writing to make a difference.

The collector then has 30 days to determine whether the disputed item is correct or not. This is a strict deadline they must meet.

If the disputed item is correct, the debt collector can continue collection activities without any changes. Unfortunately, this means they can still try to collect the debt from you.

If the disputed item is incorrect, the collector must correct it and notify anyone who received a report containing the incorrect information. This is an important step in ensuring your rights are protected.

If the collector can't determine whether the item is correct or not after 30 days, they must make the change you requested and notify anyone who received a report containing the incorrect item. This is a crucial safeguard to prevent further errors.

To dispute a debt, it's essential to know what you owe. You can get your free annual credit report to learn more about your debts.

Review your credit report carefully for false, outdated, or inaccurate entries. This will help you identify any potential issues with the debt.

To get started, you can obtain your free annual credit report from the link provided. This will give you a clear picture of your debts and help you prepare for disputing any inaccuracies.

Debt collectors have certain methods they can use to collect a debt, but there are also limits to what they can do. They may call you at home, but not at work unless your employer allows it.

Debt collectors are restricted from using force or violence, threatening criminal prosecution unless it's actually involved, and disclosing false information that could harm your creditworthiness. They also can't contact your employer before getting a final judgment.

Here are some specific actions debt collectors are prohibited from taking:

Debt Buyers are companies or individuals who buy debt from other creditors for a very low cost, often because the original creditor was unable to collect. They then try to collect the debt themselves.

Debt Buyers must abide by the same rules as debt collectors, including the Federal Debt Collection Practices Act and the Maryland Debt Collection Act. They must also provide proof of the debt, which can include a document signed by you when opening the credit card or a statement showing you used the account.

To prove ownership of the debt, Debt Buyers must submit evidence, including a list of previous owners and any paperwork associated with the sale of the debt. This can be a lengthy process.

Here are some examples of debt that Debt Buyers may attempt to collect:

Debt Buyers must also describe how much debt you owe, including principal, interest, and late fees. This information is crucial in determining the total amount you owe.

Debt collectors are not above the law, and there are strict rules in place to protect you from their abusive tactics. Under Maryland's Consumer Debt Collection Act, debt collectors may not use or threaten force or violence, or threaten criminal prosecution unless a violation of criminal law is involved.

You have the right to be treated with respect and dignity, even when dealing with debt collectors. Debt collectors may not disclose or threaten to disclose false information affecting your reputation for creditworthiness.

Here are some specific things that debt collectors are not allowed to do:

Additionally, the Fair Debt Collection Practices Act prohibits debt collectors from using unfair or unconscionable means to collect or attempt to collect a debt, as well as any conduct to harass, oppress, or abuse.

Real debt collectors will accept normal, trackable payments like check or traditional credit card. They won't ask you to pay by untraceable methods.

Scammers often insist on Visa gift card or iTunes gift card payments, which can be untraceable. This is a red flag.

Don't send a debt payment by wire transfer, especially if it's overseas. This is a common tactic used by scammers.

First, if you suspect a scam, contact your local law enforcement. They can help you sort out the situation.

Debt collectors can call you at work, but only if they don't know that your employer prohibits it. If they do know, they must respect your workplace's rules.

A debt collector can contact you by email, but they can't use an email address that's provided by your employer. If they're unsure, it's best to ask them to stop using that email address.

Debt collectors can use a work email address if you've used it to contact them or the creditor about the debt, or if you've given it to them directly. They can also use it if a previous debt collector contacted you at that email address.

If a debt collector communicates with you by email, they must include a way to opt out of future emails to that address. This is a requirement to protect your privacy.

Here are some scenarios where a debt collector might be able to contact you at work: