How to Stop Credit Card Collection Calls

If you stop making minimum payments on your credit card accounts, it may trigger collection calls and other debt recovery efforts that could make your life stressful. 

The good news is that as a consumer, you have rights when it comes to debt collection practices. The Fair Debt Collection Practices Act (FDCPA) protects consumers against unfair or aggressive debt collection tactics.

If you're being mistreated by debt collectors, or if they're calling you constantly, you can get them to stop with a written cease and desist letter. However, it could be a bad idea to cut off lines of communication completely. Here's how to stop collection calls from debt collectors—and why you probably shouldn't.

When You Should (and Shouldn't) Put a Stop to Collection Calls

It doesn't take long to get sick of collection calls. The FDCPA allows you to limit those calls or stop them altogether by dictating the hours debt collectors call and letting you stop communication completely. 

While this could be tempting, first ask yourself if you should stop those calls. 

There are both benefits and drawbacks to getting collection calls that you should consider before you exercise your rights under the FDCPA. While you might spare yourself the stress and hassle of dealing with debt collectors, you could risk other unwanted consequences.

When it could be useful to stop collection calls

It may make sense to tell a debt collector to stop contacting you if they're calling about a debt that isn't yours. Similarly, if the debt is very old, you may be beyond the statute of limitations, which would mean the debt can't be sued over anymore. Making a payment to a debt collector could reset the clock on that statute of limitations, so it could make sense to tell a debt collector to stop reaching out.

When it could be a bad idea to stop collection calls

If the debt is yours and within the statute of limitations, think twice before you ask a debt collector to stop contacting you. Taking away the debt collector's ability to talk to you about the debt could escalate the situation. 

Without other options, the debt collector could decide to file a lawsuit against you. Keeping in contact with the debt collector could help you keep your options open for other resolutions like debt settlement (settling the debt for less than you owe).

Additionally, it's worth noting that the FDCPA rules apply only to debt collectors—not original creditors. So you may continue to receive calls from banks or lenders you worked with originally even if you ask them to stop. 

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How to Stop Collection Calls from Credit Card Companies

You may have few options to stop collection calls if they're coming directly from your credit card company. Original creditors, like card issuers, aren't regulated by the FDCPA and federal protections are limited. 

Some states, including California, have laws restricting creditor collection calls. If yours doesn’t, try these options.

Know your rights

The FDCPA doesn’t apply, but state laws could help. And telemarketing laws may restrict collection calls. For example, the Telephone Consumer Protection Act (TCPA) bans creditors from spamming you with automated texts. Creditors can’t call you on your mobile phone using an auto dialer or pre-recorded message. However, they can manually dial your number.

Send a cease-and-desist letter

A written request to stop collection calls isn’t legally binding for original creditors, but may work. Send it via certified mail.

Work with a credit counselor

A credit counselor could help you enroll in a debt management plan (DMP) if you qualify. If you enroll in a DMP, your creditor may agree to stop calling you about your debts while you work on paying them down as part of the program.

File for bankruptcy

Creditors and debt collectors must stop trying to collect debts that are discharged through bankruptcy. You may need to sell assets as part of the bankruptcy process, and some debts may not be eligible for discharge.

Reach a settlement

Debt settlement—getting creditors to accept less than the full amount you owe to settle the debt—can stop collections calls once completed. However, the calls may continue during settlement talks. 

Here’s how debt settlement works: Creditors settle when they think it’s more profitable to get some of what you owe rather than nothing at all, so you need to be convincing in your negotiations. You can use a debt settlement company or handle negotiations yourself. It can take months to settle each account, and two to four years to settle all of your eligible debts. 

How to Stop Collection Calls from Debt Collectors

Stopping collection calls from debt collectors whose main business is debt collection is easier since they fall under FDCPA protections. 

Here’s what you can do to stop professional debt collectors:

• Dispute the debt. Request a debt validation letter. Debt collectors are required to send you this information, also called a debt validation notice, within the first five days of contacting you. If they haven’t sent you a debt validation letter yet, ask for one. And after you receive the debt validation letter, you have 30 days to respond or dispute the debt. You can send a request in writing to ask for additional information or explain why the debt isn’t yours or is invalid. After receiving this request during the 30-day dispute period, debt collectors must stop calling you until the debt is verified. Collectors sometimes contact you with incomplete information, fishing for more. Dispute inaccurate information and make them confirm that their info is accurate.

• Send a cease-and-desist letter. This legally stops collection calls, except for confirmation or legal notices. You can use CFPB sample letters and certified mail. If you hope to negotiate an agreement, sending a cease-and-desist letter could be counterproductive. The creditor won’t be able to contact you. You could also opt for telling collectors when to contact you, and how (e.g., email vs. phone) to limit contact. 

• Direct them to your attorney (if you have one). Debt collectors must go through your legal representative when they know you have one.

The 11-word phrase myth

There's a lot of folks saying online that you can stop debt collection calls simply by telling them: “Please cease and desist all calls and contact with me immediately.”

This rumor is only partially true. While some debt collectors may stop contacting you if you ask them by phone, you need to send a written request by mail for it to be legally binding. 

Once you send that communication, debt collectors can contact you once more to confirm that they will no longer contact you (it might seem silly, but it's allowed). They can also send legal notices.

Another thing this partial myth doesn't tell you is that this isn't necessarily the best idea. If you cut off communication with your debt collectors, they may pursue legal action against you instead. And if they sue you for the debt they're trying to collect (and win), you could face consequences, such as wage garnishment.

What Happens When You Stop Paying Your Credit Cards?

If you stop paying your credit card bills and you haven’t arranged a debt relief strategy your card issuers agree with, they’ll probably pressure you about paying your debt. They may do any of the following:

• Send you demand letters.

• Call you at home, on your mobile phone, or at work.

• Close your account so that you can’t purchase things or take out cash advances.

Most credit card companies or banks report your missed payments to credit reporting agencies if they're at least 30 days past due. Your credit score could tank. After about 90 days, issuers may transfer your debt to a collection agency, or sell it to a debt buyer. These parties then make their own collection calls. 

Knowing whether you’re dealing with a creditor, collector, or debt buyer is key to stopping collection calls. Federal law protects you from debt collectors and debt buyers by restricting what they can do legally. Original creditors, like banks and credit card companies, are freer to bug you.

How Do Debt Collectors Work?

A debt collector is an individual (or company) who collects repayment on overdue debts. Your original creditor may hire debt collectors who then contact you to collect money you owe. 

How debt collection works:

• Debt collectors find you with information from your original creditor.

• Debt collectors call until you pay up.

There are rules. The Fair Debt Collection Practices Act (FDCPA) governs debt collectors. The Act was passed in Congress in 1978, and was "designed to eliminate abusive, deceptive, and unfair debt collection practices," according to the Federal Reserve.

Rules debt collectors must follow:

• Debt collectors can't call before 8 a.m. or after 9 p.m. your time.

• Debt collectors can't contact you at work when they have reason to believe your employer bans these types of calls (including if you simply tell them you can’t get calls at work).

• Debt collectors can’t harass you or lie.

• Debt collectors must contact you through your attorney when they know you have one.

• When you send a cease-and-desist letter, debt collectors must stop contacting you except to confirm that they’ll stop contacting you, or to let you know they’re suing you.

These FDCPA rules don’t apply to original creditors (the credit card companies, banks, or personal loan providers who loaned to you). Some states regulate collection calls from original creditors separately. Research state-level protections where you live so you can identify rule-breaking and take action.

How Do Debt Buyers Work?

Debt buyers purchase debts from creditors at a discount, and own them outright. They may use collection calls the same way original creditors do. Most debt buyers must follow FDCPA rules if their main business is collecting debts. That means they are bound by the same restrictions as third-party debt collectors, such as not calling before 8 a.m. or after 9 p.m. 

However, if a debt buyer’s main business isn’t debt collection (e.g., a bank that occasionally buys debt), they might not fall under FDCPA rules. This is uncommon, but possible.

Here’s a typical debt-buying process:

• Your original creditor hires a collection agency to call you.

• The collection agency fails to collect your debt.

• Your original creditor sells your debt to someone else, a debt buyer.

• The debt buyer attempts to collect your debt.

What to Do if Collection Calls Continue

Here are the steps to take in this situation. 

Document everything

Keep detailed records. Note the date and time of calls, the name of the collector, the company they represent, and what was discussed. Keep a copy of everything. If you take legal action or file a complaint, this documentation may support your case.

File a complaint

Have debt collectors contacted you after you wrote asking them to stop? You can file a complaint with the CFPB or your state’s attorney general’s office. These organizations can investigate your complaint. They may take action against collectors.

Know how to protect yourself

Debt collectors can be very pushy. Avoid confirming debt details unless you've received written validation from the debt collector. Also, don't make any verbal promises about paying the debt. If it's very old, it may not be collectible, but even acknowledging the debt is yours could restart the statute of limitations in some cases. 

Do your best to stay calm

Your goal in talking to debt collectors is to arm yourself with information you can use to work toward the best possible outcome for yourself. Try not to let them intimidate you, and don't let fear guide your responses or communication.

If you need debt relief in Arizona (or anywhere else in the country), explore your options. The first step is the most important one—find out more today.

What If You Ignore Debt Collectors?

If you ignore them, debt collectors could escalate. This could end in them suing you—and winning. If you don’t pick up the phone and read your mail, it might be some time before you realize you’ve been sued. If you’re too late to represent yourself in court, the debt collector could win the case automatically.

If a debt collector wins a case against you in court, it could result in drastic action. With a court order, the collector could potentially ask your bank to freeze your assets. The collector may take money directly from your checking account to pay your debts. Debt collectors could also request that your bank garnish your wages, meaning a percentage of every paycheck automatically goes to your debt.

Ignoring calls is risky, because it may leave you unable to respond to a court summons for debt in a timely manner. You must show up in court to win your case.

Taking Action

To stop collection calls and tackle debt:

• Look over your finances. Evaluate your situation to pick the best strategy.

• Choose a solution. Consider negotiation, counseling, bankruptcy, or relief programs to manage your situation. 

• Document calls. Record all collection call details in case you make complaints.

• Know your rights. Understand FDCPA protections against unfair collection calls.

• Get expert help. Seek advice from financial advisors or debt professionals.

If you need debt relief, the first step is the most important one—find out more today.