Your Rights as a Borrower: What Debt Collectors Can and Can’t Do 

Dealing with a debt collector can feel stressful, but it helps to know that federal law gives borrowers significant protections. Debt collectors operate under strict rules, and understanding those rules puts you in a much stronger position to handle the situation confidently. 

The Fair Debt Collection Practices Act 

The Fair Debt Collection Practices Act (FDCPA) is the primary federal law governing debt collection. It applies to third-party debt collectors—agencies hired by creditors or that purchase debt—and covers personal, family and household debts such as credit cards, medical bills, mortgages and auto loans. 

The FDCPA doesn’t apply to original creditors collecting their own debts (like a bank calling about your credit card), though some states have laws that extend similar protections in those situations. 

What debt collectors can’t do 

Under the FDCPA, debt collectors are prohibited from: 

Calling at inconvenient times 

Collectors may not call before 8 a.m. or after 9 p.m. in your local time zone without your permission. 

Contacting you at work 

If you tell a collector your employer doesn’t allow personal calls at work, they must stop contacting you there. 

Harassment or abuse 

Collectors may not use threatening language, profanity, repeated calls intended to annoy or any other harassing behavior. They cannot threaten violence or legal action they don’t intend to take or don’t have the right to take. 

Deceptive practices 

Collectors cannot misrepresent the amount owed, falsely claim to be attorneys or government representatives, threaten arrest or criminal prosecution for unpaid debt (debt is a civil matter, not a criminal one) or use false or misleading statements to collect a debt. 

Contacting third parties without reason 

Collectors can contact other people to find your contact information, but they generally cannot disclose that you owe a debt to anyone other than your spouse, attorney or co-signer. 

Ignoring a cease-contact request 

If you send a written request asking a collector to stop contacting you, they must comply (with limited exceptions, like notifying you of specific actions they intend to take). 

What debt collectors must do 

The FDCPA also creates affirmative obligations for collectors: 

• Provide a validation notice: within five days of first contact, collectors must send written notice of the debt amount, the creditor’s name and your right to dispute the debt. 

• Verify the debt if disputed: if you dispute the debt in writing within 30 days of receiving the validation notice, the collector must stop collection activity and provide verification of the debt before continuing. 

• Identify themselves: collectors must truthfully identify themselves and the company they represent when asked. 

How to respond to a debt collector 

Request debt validation 

When a debt collector first contacts you, you have 30 days to request written verification of the debt. Send your request by certified mail so you have a record. The collector must stop collection efforts until they’ve provided verification. 

Verification typically includes the name and address of the original creditor, the amount owed and information about the debt. Review it carefully—errors in debt collection are not uncommon. 

Dispute inaccuracies 

If the debt isn’t yours, the amount is wrong or the debt is too old to be legally enforceable, dispute it in writing. Keep copies of all correspondence. 

Send a cease-contact letter if needed 

If you want a collector to stop contacting you, send a written cease-contact request via certified mail. This doesn’t make the debt go away, but it does stop the calls. Be aware that the collector can still take legal action after receiving such a request. 

Know the statute of limitations 

Every state has a statute of limitations on debt—a time limit after which a creditor can no longer sue you to collect. The period can range from a few years to more than a decade, depending on state law and debt type.   

Importantly, making a payment or acknowledging a debt in writing can restart the clock in some states. If you’re dealing with older debt, it’s worth understanding the rules in your state before taking action. 

How to report violations 

If a debt collector violates the FDCPA, you have the right to sue in federal or state court within one year of the violation. You may be entitled to actual damages, statutory damages up to $1,000 and attorney fees. 

You can also file a complaint with: 

• The Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov 

• The Federal Trade Commission (FTC) at ftc.gov 

• Your state attorney general’s office 

Filing a complaint doesn’t guarantee a specific outcome, but it creates a record and contributes to regulatory oversight of debt collection practices. 

A note on credit report accuracy 

Collection accounts that appear on your credit report must be accurate. If a collection account contains errors, you have the right to dispute it directly with the credit bureau. The bureau is required to investigate and respond within 30 days. Accurate negative information, however, can remain on your report for seven years from the date of the original delinquency. 

Finding a path forward 

Horizon partners with GreenPath to provide free financial counseling to members. If you’re navigating a debt collection situation and want to talk through your options, reach out to GreenPath today.