Can a debt collector come to your work? What credit card debt collectors can and can’t do

If you have ever fallen behind on a bill, you have likely found yourself on the receiving end of a debt collector’s efforts. Debt collectors are responsible for collecting debts on behalf of creditors or collection agencies. As the phone rings, it is only natural to find yourself asking questions like, “What can credit card companies do to collect debt?” or worse, “Can a debt collector come to your work?”

That is where the Fair Debt Collection Practices Act (FDCPA) helps. Established in 1977 and last updated in 2010, this legislation provides consumers with protections from persistent debt collectors. A collection agency is a third-party company hired to recover unpaid debts. It clearly outlines what they can and cannot do, protecting consumers with a wide variety of debt, including car loans, medical bills and, of course, credit card debt.

If you have fallen behind on your credit card bill, this is what you need to know about what credit card debt collectors can and can’t do.

Understanding the role of credit card debt collectors

Everyone knows what a credit card debt collector is, but not everyone is so familiar with the limitations that affect their collection efforts.

The FDCPA provides certain protections that limit what debt collectors can and can’t do. Under the FDCPA, debt collectors may not engage in practices considered abusive, unfair, or deceptive when pursuing payment of a debt.

While the FDCPA does not apply to business credit card debt, it does apply to personal, family, and household debts. There is another important caveat as well—the law is quite specific about the types of debt collectors it covers. Original creditors are typically not bound by the FDCPA, with the law instead targeting mostly collection agencies, attorneys, and debt buyers. Third-party debt collectors are outside agencies hired by creditors to recover debts, while in-house debt collectors are employees of the original creditor. Debt collection agencies and debt buyers are examples of entities that regularly collect debts owed to others.

While it may feel like a debt collector is constantly buzzing around you, the FDCPA does restrict how and when they can contact you.

What can debt collectors legally do?

Before a debt collector can begin collection efforts, they must first notify you of the debt and provide you with an opportunity to pay.

A debt collector is required to furnish you with validation information that includes:

• The debt collector’s name and address
• The name of the original creditor
• The account number associated with the debt
• The total amount owed, clearly itemized to show interest, fees, payments, and credits
• Your rights regarding debt collection
• Instructions on how to dispute the debt if you believe it is incorrect

This validation information must be provided either during the initial contact or within five days afterward, often referred to as a validation notice or written notice, allowing you to verify the debt details.

You may also request additional information from the original creditor, but this request must be made within 30 days of receiving the validation information. It’s important to keep copies of any written correspondence for your records.

While debt collectors are restricted in many ways, they are permitted to pursue collection through various means. They may contact you via phone calls, emails, or letters, and you have the right under the FDCPA to manage and limit these debt collector communications, including debt collector calls. The following sections will explain some of the actions debt collectors can legally take when attempting to collect a debt.

Contact you by phone, email, or mail

Debt collectors are allowed to contact you in several ways. This includes phone calls, mailed letters, and text messages. You may also receive personal calls from debt collectors, including at your workplace. They may also leave you voicemails explaining that you have an overdue debt.

Use social media

As of Nov. 30, 2021, debt collectors may use social media to try to contact you. They can send you direct messages or even friend requests on social media. 

However, they must disclose that they are a debt collector. Additionally, they cannot communicate in any manner that can be viewed by friends on the platform or the general public. 

Contact friends and family

Some consumers may be surprised to find that debt collectors are legally permitted to contact their friends, family, and even neighbors. This is especially true if they serve as a joint account holder or co-signer. 

Contact your employer

Just like a debt collector can contact your friends and family, they can also contact your place of employment (these are often referred to as work debt collectors). However, they are barred from revealing information regarding your debt.

File a lawsuit

If you fail to respond or resolve your debts, debt collectors can sue you. If a debt collector sues you, you will receive court papers that require your response. Lawsuits can be filed in state or federal court, and you may need to respond in either venue. A federal court is an option for certain types of debt collection lawsuits. In many cases, the judge rules against the borrower when they have failed to respond to collection efforts, and the court may issue a court order for wage garnishment or other actions.

Therefore, it is imperative that you speak to your creditors and work with them to find a plan for repayment that works for you both.

Garnish your wages

A debt collector may request to garnish your wages, or the judge may order it. Either way, the court can withhold a portion of your income to resolve your debt. It may also freeze your bank account or place a lien on your property.

However, if you do fall subject to wage garnishment, there are protections in place to protect your employment. Under Title III of the Consumer Credit Protection Act (CCPA), your employer is not allowed to discharge an employee due to wage garnishment. Federal law also protects certain benefits, such as Social Security benefits and veterans’ benefits, from garnishment by debt collectors.

What debt collectors can’t do under the Fair Debt Collection Practices Act

While debt collectors do have many permissions by law, there are also several specific restrictions that they must follow. Debt collectors are limited in their collection activities when trying to collect consumer debts, including past due debts and unpaid debt.

Harass or mislead you

Debt collectors can certainly be an annoyance, but they are prohibited from legally harassing, abusing or threatening you. This includes the use of foul or aggressive language.

They are also prohibited from making false claims. The FDCPA specifically prohibits deceptive practices by debt collectors. Debt collectors may not misrepresent themselves, and they cannot lie about what you owe. This means they cannot claim to be an attorney or law enforcement in an effort to collect a debt. They also cannot threaten you with jail time if you do not pay.

Add to your debt

Debt collectors may not add interest, fees, or penalties to your debt. However, there may be exceptions if your contract or state law allows for it. 

Take funds without permission 

If you do make a payment for your outstanding debt, your debt collector must honor the terms. That means they cannot deposit a postdated check in advance. They also cannot seize or threaten to seize your property, unless specifically permitted in your contract or under state law. 

Debt collectors may not garnish certain federal benefits, such as Social Security payments or VA benefits, that are directly deposited into your account. 

Disregard communication requests

You have the right to request that your debt collector stop contacting you, but this request must be made in writing. The debt collector may not contact you after that. 

For example, a debt collector is permitted to call you at work. However, if you are not allowed to take personal calls at work and a debt collector contacts you there, you can request that they stop.

However, this newfound peace is often only a short reprieve – debt collectors will typically take that as a sign to intensify collection efforts. Debt collectors can sue you or even request wage garnishment. 

Discuss your debt with other parties 

While debt collectors may contact people you know, there are limits. 

They may only call as a third party when they fail to reach you directly. They can request your contact information, ask for your address, or obtain your place of employment, but they cannot actually discuss your credit card debt. 

Debt collectors are also limited to just a single communication, unless that party specifically requests a follow-up or if the debt collector has a reasonable belief that new information is available.  

Contact you at will

Debt collectors are limited in how they can contact you. As of Nov. 2021, they cannot make more than seven calls per week, per person. This limit includes any calls made to other parties concerning your debt.

When they do contact you, it cannot be at an unusual time or one that is considered inconvenient to you. They are also prohibited from contacting you outside of the permitted hours. Open communication hours generally last from 8 a.m. to 9 p.m.

Additionally, debt collectors are prohibited from publicly posting about your debt on social media and other public platforms. They can, however, contact you privately unless you specifically request that they stop. Furthermore, any email or text communications must also include an option to opt out of future communications.

Contact you if you have a lawyer

If your debt collector is aware that you have an attorney, they are not permitted to contact you directly. Instead, all further communications must be directed to your legal representation. 

State protections for debt collectors

In addition to federal laws, there may be additional state protections against debt collections. State laws vary and may affect how debts such as utility bills are collected, including the statute of limitations and the rights consumers have under different state legal frameworks.

For example, there is a statute of limitations that applies to most debts. While debt collectors can still pursue collection efforts after this period, they may not bring a lawsuit for that debt after a certain period of time.

Laws vary by state. For example, the statute of limitations for credit card debt is four years in California, while in Connecticut it is six years, and in states like New York and Virginia it is only three. Meanwhile, Kentucky and Rhode Island last the longest at 10 years.

Be sure to check with your state attorney general’s office to see the exact laws regarding debt collection efforts for your state. The state attorney general’s office can also guide your rights regarding utility bills and other types of consumer debts.

What to do if you think a collector is violating the law

There may be times when debt collectors push the limits and step outside the limits of the law. If a debt collector broke the law, you may be entitled to recover court costs and attorney fees if you win a lawsuit under federal law.

If this happens to you, be sure to report the issue for help from these organizations. You can also file a complaint if you believe a debt collector broke the law.

• The Federal Trade Commission (FTC)
• Your state attorney general’s office
• The Consumer Financial Protection Bureau (CFPB)

Should you require legal representation, you can use the Free Legal Help dictionary to find a pro bono legal aid program.

What if i don’t think i owe the debt?

Within 30 days, send a written letter of dispute to your creditor.

• State that you believe the debt does not belong to you
• Ask your creditor for a return receipt to confirm they received your dispute
• Send via certified mail, and keep a record for future reference

Upon receipt, your debt collection must cease debt collection efforts until it submits written verification of the debt (such as a copy of the original bill). 

If your letter of dispute is not submitted within 30 days, the debt is considered legitimate, and the debt collector may continue collection efforts, as permitted by law.

How credit card debt collection affects your credit score

Just like the FDCPA regulates debt collection efforts, the Fair Credit Reporting Act (FCRA) addresses how credit card debt is reported to the major credit bureaus.

Debt collectors have the option to contact the major credit bureaus about your debt, which can hurt your credit score. Debt collectors may also report your debt information to a credit reporting company, which can affect your credit reports. However, before this can be done, the debt collector must do one of the following:

• Communicate with you over the phone or in person
• Mail a letter
• Send an electronic communication

They then must wait a reasonable amount of time, typically 14 days, before proceeding. This is to ensure that all communications are deliverable. After this period, a debt collector may report the debt to credit reporting companies if you fail to pay your credit card bill.

However, if you believe that your credit report contains incorrect information, you can file a dispute. It is important to review your debt information for accuracy on your credit reports to ensure all details are correct. While the credit bureau investigates the matter, it must adjust your credit report to include notice of the dispute.

If the investigation rules in favor of the debt collector, the debt can stay on your credit report for up to seven years. Therefore, it is essential to settle any outstanding debts promptly to avoid jeopardizing your financial future.

Also, be sure to sign up for a free credit report so you can monitor any changes made to your score.

 ➤  SEE MORE:How to pay off delinquent credit card debt: When does it make sense to settle?

The bottom line

The penalties for credit card debt can be severe if you neglect to pay your debt. However, while debt collectors may contact or even sue you, they are still limited by certain laws that protect credit card users.

Knowing how to deal with credit card debt collectors is crucial to your financial health. If you feel that you cannot pay your credit card bill, contact your debt collector immediately to discuss what options are available. Many times, they will reduce your balance in an effort to settle the debt. Even if that is not an option, they will usually put you on a payment plan that makes repayment possible for your budget.

Whatever you do, do not avoid a debt collector. Although they may be limited by certain laws, you still risk damage to your credit score and potential litigation if you refuse to pay.

As a final tip, always avoid sharing personal or financial information with debt collectors until you have verified the legitimacy of the debt and received proper validation. Protecting your financial information is essential to prevent scams and identity theft.

bonus tip!

Use our Credit Card Payoff Calculator to look at a breakdown of what you owe.

It can help you develop a plan for repayment, allowing you to avoid damage to your credit score and potential legal action.