Debt Collection Laws

How Debt Collection Laws Prevent Collection Agencies from Harassing You

Debt collection laws have been on the books for years to prevent harassment from debt collection agencies. These agencies can sometimes become threatening and abusive in their attempts to bully you in paying them off and this is a primary reason that people seek credit counseling. You should never buckle under to pressure to pay without firm information in writing from a debt collection agency in order to protect your rights and guarantee that the agency is legitimate and compliant with debt collection laws. The Federal Trade Commission (FTC) has developed a set of debt collection laws called the Fair Debt Collection Practices Act that limits unreasonable harassment from these companies. If one of them is after you, you should know how to protect yourself.

Debt Collection Laws' Limitations on Collection Agencies

• Debt collection agencies may not contact you before 8:00 am or after 9:00 pm.

• Debt collection laws prevent agencies from contacting you at work once you tell them your employer doesn't allow such calls.

• Debt collection agencies may not lie about who they are.

• Repeated calls meant to harass or annoy you are not allowed in the Fair Debt Collection Practices Act.

• Debt collection agencies cannot lie to you or threaten you.

• You are not allowed to be told that you will go to jail or that you have committed a crime.

• Debt collection laws prohibit agencies from telling other people they are trying to contact you because of a debt problem.

• Collection agencies may not say they will garnish your wages.

• They may not contact you again once you have requested, in writing, that contact cease. The only exception that the debt collection laws allow is one more contact to inform you that legal action will take place to collect the debt.