Debt Collection
If you are behind in paying your bills, you can expect to hear from a debt collector. A debt collector is someone, other than the creditor, who regularly collects debts owed to someone else. Lawyers who collect debts on a regular basis are considered debt collectors, too.
What You Need to Know
You have rights: Federal law requires that debt collectors treat you fairly. In short, that means:
- A debt collector may contact you in person, by mail, telephone, telegram, or fax, but may not contact you at inconvenient times or places – for example, before 8 a.m. or after 9 p.m – unless you agree. A debt collector may not contact you at work if the collector is aware that your employer prohibits it.
- If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people only to find out your address, your phone number, and where you work.
- A debt collector may not harass, oppress, or abuse you or any third parties they contact about you.
- A debt collector may not lie or mislead anyone when collecting a debt.
The FTC at Work
Debt collectors generate more complaints to the FTC than any other industry group. In its lawsuits alleging illegal debt collection practices, the FTC has been able to ban some debt collectors from the debt collection business forever, and has gotten millions of dollars back for consumers. The agency held a workshop in 2007 to review the debt collection industry 30 years after the Fair Debt Collection Practices Act became law. Industry members, consumer advocates, state regulators, and academic researchers looked at changes in the industry, and whether the law is keeping pace with developments in the marketplace.
- FTC Highlights Expanded Work on Debt Collection Issues over the Past Year
- Under FTC Settlement, Debt Buyer Agrees to Pay $2.5 Million for Alleged Consumer Deception
- At FTC's Request, Court Orders Debt Collection Operation to Stop Deceiving and Abusing Consumers
- FTC Issues Final Policy Statement on Collecting Debts of the Deceased
- FTC to Hold Workshop on Ways to Protect Consumers As Debt Collection Technologies Change
- FTC Submits 2011 Fair Debt Collection Practices Report to Congress
- Leading Debt Collector Agrees to Pay Record $2.8 Million to Settle FTC Charges
- Debt Collector Will Pay $1.75 Million to Settle FTC Charges
- FTC Issues Report on Reforming Debt Collection Litigation and Arbitration; Recommends Steps to Protect Consumers and Repair a Broken System
- FTC Charges Payday Lender with Deceiving Employers in Scheme to Collect Debts
- Debt Collectors Will Pay More Than $1 Million to Settle FTC Charges
- Debt Collection Supervisors Settle FTC Charges
- Internet Payday Lenders Will Pay $1 Million to Settle FTC and Nevada Charges; FTC Had Challenged Defendants' Illegal Lending and Collection Tactics
- Debt Collectors Settle with FTC; Abusive Practices Affected Consumers Nationwide
- Collecting Consumer Debts: The Challenges of Change: A Federal Trade Commission Workshop Report (February 2009)
- Nationwide Debt Collector Will Pay $2.25 Million to Settle FTC Charges
- Bear Stearns and EMC Mortgage to Pay $28 Million to Settle FTC Charges of Unlawful Mortgage Servicing and Debt Collection Practices
- Defendants in Debt Collection Scheme Aimed At Hispanics Agree to Settle FTC Charges
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Debt Collection (:30)
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