Ten Facts About Debt Collector Calls You Need to Know

If you’re getting debt collector calls at your home or work, know that you have rights. Consumer protection laws put limits on what a debt collector can do and say when they’re trying to collect a debt.

When you know the law, you can protect yourself against unfair debt collection practices. And with a little information on how to deal with debt collectors, you’ll be ready to take control of the situation and get debt relief. To help with that, here are the top 10 facts about debt collector calls that you should know.

1. Not All Debt Collector Calls Are Legitimate

When you get a debt collection call, the first thing to do is check that the caller and the debt is legitimate. Debt collectors don’t always have accurate information, so they sometimes call the wrong person about a debt. There are also debt collectors who misrepresent a debt or pursue debts that are past the statute of limitations.

Ask for the name of the debt collector who’s calling you, the debt collection company’s name, and the details of the debt. This information can give you an idea of the debt’s validity. If it turns out that the debt collector called the wrong person, you can also simply let them know you’re not the person they’re trying to reach. Even if the debt does seem legitimate, don’t take any action or admit that it’s yours yet.

Tell the caller that you want validation information about the debt. Debt collectors are legally required to provide this information by mail or electronically.

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2. You Have 30 Days to Dispute a Debt After the Validation Notice

A debt validation notice gives you the opportunity to recognize whether a debt is yours and if you’re legally responsible for it. If not, you can dispute the debt.

Validation notices normally include the following information:

• Debt collector’s name and mailing address 

• Name of the original creditor 

• Account number associated with the debt

• Current amount of the debt

• How much you owe, broken down so that you can see fees, interest, payments, and credits

• What you can do if you don’t think the debt is yours

• An explanation of your rights

The validation notice must also have a tear-off form that you can send back to the debt collector to dispute the debt or take another action. Once you’ve received the validation notice, you have 30 days to dispute the debt if you don’t believe it’s valid.

3. Creditors and Debt Collection Agencies Are Not the Same

If you don’t recognize the name of the debt collection company contacting you, it doesn’t necessarily mean that the debt collector is calling the wrong person. You could be dealing with debt collectors who either bought your unpaid debt or were hired to collect it.

A creditor is the original issuer of a debt. A debt collection agency is a third-party company that attempts to recover debt.

Once an account has been delinquent for a certain amount of time, most creditors will either send your debt to a debt collector or sell it to them for a fraction of what you owe. This process is called a charge off.

The creditor may get a debt collection agency involved. Some creditors hire debt collection agencies to chase down debt for them. Other creditors sell debt to collection agencies for pennies on the dollar.

4. You’re Protected from Unfair Debt Collection Practices

The Fair Debt Collections Practices Act (FDCPA) is a federal law that governs debt collection. Under the FDCPA, it’s illegal for debt collectors to:

• Contact you at unreasonable hours. Debt collectors can call, text, or send you letters, but not at unreasonable or unusual times. The general guideline is that debt collectors can’t contact you before 8 a.m. or after 9 p.m. unless you agree to it. If you tell a debt collector that they’ve called you at an inconvenient time, they must end the call.

• Harass or threaten you. Debt collectors cannot threaten to harm you, use obscene or profane language, or repeatedly use the phone to annoy you.

• Make false statements or misrepresent themselves in any way. It’s illegal for a debt collector to make false claims about you or themselves when they are trying to collect a debt. For example, a debt collector can’t claim to be a lawyer or a government agent, say that you’ve committed a crime, or misrepresent the amount you owe.

• Threaten to seize, garnish, or sell your property or wages. A debt collector cannot threaten to seize or garnish your wages unless they get a court order to garnish your wages or intend to take you to court in order to do so.

5. Debt Collectors Who Don’t Follow the Law Could Face Legal Consequences

If you think debt collector calls or other such actions may be violating the FDCPA, contact an attorney to see if you have any legal recourse. You have rights as a debtor, and there are legal consequences for creditors and collection agencies who violate those rights. You can also file a complaint with the two federal regulators that oversee the FDCPA:

• Consumer Financial Protection Bureau (CFPB): 1-855-411-2372

• Federal Trade Commission (FTC): 1-877-382-4357 (FTC-HELP)

If you prove a violation of the FDCPA took place, you may receive $1,000 in damages plus compensation for any actual harm the debt collector caused. The debt collector could also be responsible for paying your legal fees. Don’t wait to take action—you can only file a lawsuit for a violation within one year of the offense.

6. Many Creditors Will Settle Your Debt 

The best way to stop debt collector calls is to resolve your debt. But if you simply can’t afford to pay your debt in full, you might be able to negotiate with creditors yourself. If you’re still dealing with the original creditor, they could be willing to lower your interest rate, change the terms of your payments, or even settle the debt for less. Lenders and credit card companies are often willing to work with consumers. That way, they get paid something, which is better than nothing.

The same is true with debt collectors. Since debt collectors normally buy debt at a fraction of what’s owed, they don’t need to collect the full amount to make a profit. You could potentially agree on a debt settlement that you can afford to satisfy your debt.

7. Debt Collectors Can’t Contact You at Work if You Ask Them to Stop

The FDCPA also protects you from unwanted debt collector calls at your job. If you tell the debt collector that you’re not allowed to receive personal calls at work, then they can’t contact you there anymore.

If you ignore the debt collector’s calls or avoid calling back, they can keep trying to get a hold of you at that number. So it’s up to you to speak up and let them know that they’re calling your place of employment and you want them to stop. Then, if they continue, you can submit a complaint to your state’s attorney general’s office, the CFPB, or the FTC. 

What’s more, telling them not to contact you at all is another way to stop debt collector calls. There’s a risk in doing this, though. If they respect the law and stop contacting you, the door may be closed to negotiating an agreement. The next contact may be a court summons, because the debt collector has no other choice.

8. Debt Collectors Can’t Bombard You With Calls

The FDCPA makes it illegal for debt collectors to place repeated or continuous phone calls to you. While the FDCPA doesn’t set a strict limit on calls, it has guidelines to help determine if a debt collector violated the law. Debt collectors are presumed to have violated the law if they call you about a particular debt:

• More than seven times within a seven-day period

• Within seven days after talking to you on the phone about the debt

There are exceptions to these guidelines. For example, if you give a debt collector permission to call you more often than seven times a week, then they wouldn’t be violating the FDCPA. To give you another example, although seven calls within a seven-day period would normally be fine, seven calls on the same day could be considered a violation.

9. You Can Record Calls in Some States

In 37 states and Washington D.C., you can record your own phone calls if you want to, even if you don’t have the other person’s permission. These are called one-party consent states, and if you live in one, consider recording your debt collector calls so that you have proof of what was said.

That leaves 13 two-party consent states where you need the permission of all parties on the call if you want to record. You can still record your calls, but you need to ask for consent before you do in these states:

• California

• Connecticut

• Delaware

• Florida

• Illinois

• Maryland

• Massachusetts

• Michigan

• Montana

• Nevada

• New Hampshire

• Pennsylvania

• Washington

10. Debt Collectors Can’t Threaten Legal Action They Don’t Intend to Take

Debt collectors can’t try to bully you by being dishonest. It’s against the law for them to threaten to sue you or take any legal action if those actions aren’t truly imminent. The person calling you can’t pretend to be an attorney, a government employee, or a law enforcement officer. 

A debt collector also can’t threaten you with arrest. People aren’t put in jail for unpaid debt, so while there can be legal consequences for unpaid debt, an arrest isn’t one of them. Once again, if you believe that a debt collector has broken the law in their communications with you, report them to your state’s attorney general’s office, the CFPB, or the FTC.

How to Get a Debt Collector to Settle for Less

There are ways to work with your creditors to see if they’ll settle your debt amount for less than you originally owed. Here are some steps you can take:

• Call your debt collector or creditor and explain your situation to them.

• Tell them that you cannot pay the full amount on your debt.

• Negotiate new terms with your debt collector based on how much you can pay.

• Get your debt collector to sign a document accepting the new terms.

• Pay the new amount on time each month.

If you’re able to negotiate with your debt collector or original creditor and pay them on time according to your agreement, debt collector calls should stop. However, getting a debt collector to agree to new terms can be difficult. Another option is to get help from a professional debt settlement company.

When using a third-party debt settlement company, you’ll stop paying your creditors and instead place this money into a separate bank account that you control. Once you have enough money in this account, the company will contact your creditors to work out a settlement agreement. Once you’ve paid the reduced balance, it’s recorded as paid in full. The company gets its payment after the settlement is reached.

Keep in mind that you may continue to receive calls from debt collection companies after you stop making your payments. However, this is temporary as long as you fulfill the terms of the settlement agreement.

Stop Debt Collector Calls and Take Control of Your Finances

If you’re struggling with debt collector calls or worried about making monthly payments, it’s time to take control of your situation. Freedom Debt Relief will help you understand your options for dealing with your debt, including our debt relief services. Our Certified Debt Consultants can help you find the right solution for your financial future. Find out today if you qualify.