Understanding Your Rights Under the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) is a strong federal law that protects consumers from unfair debt collection tactics. It applies only to third-party debt collectors and only for personal—not business—debts. In addition to federal laws, your state may offer even more protection.
A Snapshot of Debt Collection Complaints
In its 2013 annual report to Congress, the Consumer Financial Protection Bureau (CFPB) highlighted complaint data collected by the Federal Trade Commission (FTC). During 2012, the FTC received 125,136 complaints about debt collectors, a decrease from 144,451 in 2011.
It’s important to note that filing a complaint does not always mean a law has been broken. Some complaints may even result from overseas scam operations pretending to be legitimate debt collectors.
Common Illegal Debt Collection Practices and Complaint Volumes
Below are some of the most common consumer complaints, the number of reports, and the related laws.
1. Repeated Calls to Harass You
Number of complaints: 37,543
The law: Debt collectors may not call you repeatedly to annoy or harass you. While there’s no official limit to how many times they can call, courts can decide whether the behavior crosses the line. If this happens to you, start documenting each call and message.
2. Trying to Collect More Than What’s Owed
Number of complaints: 9,034
The law: Collectors may add interest to debts, but only if the original contract or law allows it. They can’t inflate the debt illegally. Nevertheless, some still try to do so.
3. Failing to Send a Written Notice
Number of complaints: 26,139
The law: Within five days of first contact, the collector must send written notice stating:
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The amount of the debt
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The name of the original creditor
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Your right to dispute the debt
4. Threatening Violence
Number of complaints: 3,312
The law: Under no circumstances can debt collectors threaten violence. This is strictly illegal.
5. Making Illegal Threats
Number of complaints: 30,470
The law: Collectors cannot threaten lawsuits, arrest, wage garnishment, or credit damage unless they have legal grounds and actually intend to proceed. Usually, these actions must follow a legal judgment—if they are allowed at all.
6. Using Obscene or Abusive Language
Number of complaints: 13,329
The law: Any use of obscene, profane, or abusive language—including slurs—is prohibited. If a collector crosses the line, document the behavior and tell them you’re recording the call.
7. Calling at Inappropriate Hours
Number of complaints: 8,166
The law: Debt collectors are not allowed to call before 8 a.m. or after 9 p.m., unless you give permission or request a different time.
8. Revealing Your Debt to Others
Number of complaints: 16,679
The law: Collectors can contact third parties, such as family or coworkers, but only to locate you. They are not allowed to disclose the debt, and repeated calls are restricted.
9. Calling You at Work Despite Requests to Stop
Number of complaints: 14,482
The law: If you tell a collector not to call you at work, they must comply. Additionally, they are not allowed to discuss your debt with coworkers—except in specific cases like legal wage garnishment.
10. Failing to Verify a Disputed Debt
Number of complaints: 9,814
The law: If you dispute the debt in writing, the collector must stop all attempts to collect until they provide written proof.
11. Ignoring Requests to Stop Communication
Number of complaints: 4,928
The law: You can send a written request for the collector to stop contacting you. After receiving your notice, the only contact allowed is notification of legal action.
What to Do If a Collector Breaks the Law
If you believe a debt collector has violated the law, here are two steps you can take:
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File a complaint with the CFPB and your state attorney general.
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Consult a consumer law attorney. You may be eligible for damages or attorney fees.