Debt Collector Rights
You have rights. Don't be intimidated.
FDCPA protections
- Federal Fair Debt Collection Practices Act.
- Collectors CAN'T call before 8am or after 9pm.
- CAN'T threaten arrest or legal action they can't take.
- CAN'T harass, swear, or use abusive language.
- CAN'T tell employer or family.
- CAN'T garnish Social Security (federal protections).
- If they violate — sue for $1,000+ damages.
Validate the debt FIRST
- Within 30 days of first contact — request validation in writing.
- Sample letter at consumerfinance.gov.
- Send certified mail.
- They MUST prove the debt is yours + amount correct.
- Many can't prove — debt sold many times.
- They must stop collection until validated.
Protected income
- Social Security — generally can't be garnished by private collectors.
- VA benefits — protected.
- Federal pensions — protected.
- SSI — fully protected.
- EXCEPTION — federal debts (taxes, student loans) CAN garnish Social Security.
- Keep protected funds in separate bank account.
- Tell bank these are SS deposits — they may protect.
Stop the calls
- Send written "cease & desist" letter.
- They can only contact you to confirm receipt or lawsuit.
- Sample letter at CFPB.
- Send certified mail with return receipt.
- Keep records of every call.
- Doesn't make debt go away — but stops harassment.
Negotiate down
- Old debts often negotiable to 20-50% of amount.
- Get any settlement IN WRITING before paying.
- Pay by check (NOT direct from bank account).
- Get "paid in full" written confirmation.
- Ask for "deletion" from credit report.
- Statute of limitations — old debts may be uncollectable (varies by state, 3-6 years usually).
Report violations
- CFPB — consumerfinance.gov/complaint. Free.
- FTC — reportfraud.ftc.gov.
- State Attorney General — most active on this.
- FDCPA violations — sue for damages + lawyer fees.
- NACA — naca.net. Free directory of consumer attorneys.
- Many take cases on contingency (no upfront cost).
Don't pay scams
Common scam: caller demands cash for "old debt." If unfamiliar — DON'T PAY. Demand validation. Most are scams or expired debts. Never pay by gift card / wire / Venmo. Real collectors accept check + give written validation. Hang up if pressure tactics. Call your bank. Free help: NCLC — nclc.org.