Many bill collectors depend on the assumption that most consumers are unaware of their rights under the Fair Debt Collection Practices Act. They often take full advantage of this assumption and use it to intimidate consumers with idle threats such as incarceration, deportation or garnishment of Social Security and retirement benefits, though they possess no grounds or authority to take such actions.

Collection/recovery departments are a necessary component in the recovery of credit losses, but there is a wrong and right way of conducting business. The violation of consumer rights is an unnecessary strategy that should not be utilized or tolerated. Consumers may have remedies when a collector violates the FDCPA, including damages and certain costs. A violation does not automatically eliminate a valid debt.

Do not fall victim to these deceptive tactics—learn your rights. Listed below are just a few helpful tips to aid you in your next encounter with a bill collector, who may not do the following:

  • Call before 8 a.m. or after 9 p.m. without a consumer’s approval.
  • Place repeated or continuous calls with the intent to annoy, abuse or harass a consumer.
  • Discuss a consumer’s debt with unauthorized third parties. Exceptions can include a spouse or an attorney representing the consumer; limited contacts to obtain location information have separate rules.
  • Threaten legal action that is unlawful or that the collector does not intend to take. Age, employment status or receipt of benefits does not by itself prevent a lawsuit.
  • Cause expense to the consumer in paying their debt by requiring the use of such services as Western Union, express mail or check by phone.
  • Use profanity or threaten a consumer to get them to pay a bill.
  • Make telephone calls about a particular debt in violation of federal call-frequency rules. More than seven calls within seven days, or a call within seven days after a telephone conversation about that debt, can be presumed unlawful. Exceptions and the pattern of calls matter; other communication channels have separate protections.
  • Continue to contact a consumer once notification of bankruptcy has been made and attorney name and number has been provided. All further calls must be directed to the attorney for as long as the attorney is representing the consumer.
  • Continue ordinary collection communications after receiving a written request to cease contact. Limited responses remain permitted, such as confirming contact will stop or notifying the consumer of a specific action.
  • Use repeated callbacks or other communication patterns to annoy, abuse or harass a consumer. The circumstances matter; a callback is not automatically unlawful.

Original source reference: ftc.gov/os/statutes/fdcpa/fdcpact.htm. For current guidance, see the FTC debt collection FAQs and CFPB telephone-call rules. State laws may provide additional protections.