What laws limit what debt collectors can say or do? | Consumer Financial Protection Bureau (2024)

FAQs

What laws limit what debt collectors can say or do? | Consumer Financial Protection Bureau? ›

The Fair Debt Collection Practices Act

Fair Debt Collection Practices Act.

The Fair Debt Collection Practices Act (FDCPA) (15 USC 1692 et seq.), which became effective in March 1978, was designed to eliminate abusive, deceptive, and unfair debt collection practices.

Debt collectors cannot call you at unusual or inconvenient times or places. Generally, they may call between 8 a.m. and 9 p.m., but you may ask them to call at other times if those hours are inconvenient for you.

The 7-in-7 rule explained

Collectors are permitted to place a call to the consumer about a particular debt seven (7) times within a period of seven (7) consecutive days, so long as no contact is made with the consumer in any of the attempts.

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, or deceptive practices to collect debts from you, including: Misrepresenting the nature of the debt, including the amount owed. Falsely claiming that the person contacting you is an attorney.

As a consumer, you have the right to demand that a debt collector stop contacting you (15 U.S.C. § 1692c). You must notify a debt collector in writing that you want them to terminate all communication, or to terminate a particular type of communication such as telephone calls.

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.

But what must the creditor provide by way of documentation? At a minimum, it must produce: A copy of the original written agreement between the parties, such as the loan note or credit card agreement, preferably signed by you.

Can a 10 year old debt still be collected? ›

Can a Debt Collector Collect After 10 Years? In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.

By paying the collection agency directly, the notification of the debt could stay on your credit report longer than if you attempt to use another option, like filing for bankruptcy. When institutions check your credit report and see this information on it, it may harm your ability to obtain loans.

If you never pay a debt in collections, the immediate consequence is a significant negative impact on your credit score. This derogatory mark can stay on your credit report for seven years, affecting your ability to secure loans, credit cards, and favorable interest rates.

a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

Reg F includes a debt validation notice template, also known as model validation notice (MVN), with new content and formatting guidelines. The rule provides certain legal protections to debt collectors who use the model validation notice to deliver validation information to consumers.

The convenient times to communicate with the consumer are after 11:00 a.m. Eastern time (8:00 a.m. Pacific time) and before 9:00 p.m. Eastern time (6:00 p.m. Pacific time).

They are generally prohibited from contacting you before 8 a.m. or after 9 p.m. The law also requires debt collectors to follow instructions you give them about when and where you don't want to be contacted.

Congress passed a law called the Telephone Consumer Protection Act (TCPA) to govern telemarketing. However, it also applies to debt collection calls. Basically, the TCPA provides that companies including debt collectors can't call your cell with an autodialer.

It is the purpose of this subchapter to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection ...