KNOW YOUR RIGHTS: DEBT COLLECTION
Know Your Rights is a Legal Aid Society educational series that provides helpful information on a variety of relevant topics. This issue, we talk DEBT COLLECTION!
Here’s what you need to know:
Written by Legal Aid Society Senior Attorney Melissa Weinstein
If a debt collector is contacting you, before you respond, it’s important to understand your rights under the law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects you from abusive, unfair, or deceptive debt collection practices.
What To Know About Debt Collection
Your rights under the FDCPA applies to most personal debt, including credit card debt, car loans, medical bills, student loans, mortgage, and other household debts.
Are debt collectors allowed to contact me at any time or place?
No. The law limits how and when a debt collector can contact you. Debt collectors:
can’t contact you before 8 a.m. or after 9 p.m., unless you agree to it
can’t contact you at work if you tell them you’re not allowed to get calls there
can’t contact you by email or text message if you ask them to stop
can’t call you more than seven times within a seven-day period or within seven days after talking with you by phone
can’t privately message you on social media if you ask them to stop
How are debt collectors allowed to contact me?
Debt collectors can call you, contact you by private message on social media, or send letters, emails, or text messages to collect a debt if you don’t ask them to stop. They can also serve you with a civil summons if they decide to sue you to collect the debt, even if you ask them to stop contacting you.
What does the debt collector have to tell me about the debt?
A debt collector has to give you “validation information” about the debt either when they first communicate with you or within five days of the first contact if you request it. The validation information has to include the following:
their name and mailing address
the name of the creditor you owe the debt to
how much money you owe
what to do if you don’t think it’s your debt
your right to get information about the original creditor if you request it within 30 days of getting verification information from the debt collector
How do I stop a debt collector from contacting me?
Mail a letter to the collection company and ask it to stop contacting you. Keep a copy for yourself. Consider sending the letter by certified mail, so you’ll have a record the collector got it. Once the collection company gets your letter, it can only contact you to confirm it received your letter or to tell you it plans to take legal action against you. If an attorney is representing you, tell the collector. The debt collector must communicate with your attorney, not you.
Can a debt collector contact anyone else about my debt?
Generally, a debt collector can’t discuss your debt with anyone but you, your spouse, or your attorney. A debt collector can contact other people to find out your address, your home phone number, and where you work, but it can’t contact them more than once, and it can never tell them you owe a debt.
What if I don't think I owe the debt?
Once you get the validation information, if you still don’t recognize a debt, or don’t think the debt is yours, send the debt collector a dispute within 30 days. Tell them you don’t owe some or all of the money, and ask for verification of the debt. Once the collection company gets the letter, it must stop trying to collect the debt until it sends you written verification of the debt, like a copy of the original bill for the amount you owe. If you don’t dispute the debt within 30 days of getting the validation information, the debt collector will assume the debt is legitimate. If you think you’ve been a victim of identity theft, let the debt collector know; you should also contact local law enforcement and file an identity theft report with the Federal Trade Commission right away.
Can a debt collector report my debt to a credit reporting company?
Yes, but a debt collector must take one of the following actions before reporting a debt to a credit reporting company:
talk to you by phone or in person about the debt.
mail a letter or send an electronic communication about the debt, such as a validation notice, and wait for a reasonable amount of time for you to respond.
you also have an opportunity to dispute debt reported to a credit reporting agency and separate rights to protect you from inaccurate information.
What else are debt collectors not allowed to do?
In addition to the limitations on contacting you we already mentioned, debt collectors can’t harass you in other ways.
Debt collectors can’t speak to you in a threating or abusive manner. For example, they
can’t threaten to hurt you
can’t use obscene or profane language
Debt collectors can’t lie. For example, they
can’t tell you that you owe a different amount than what you actually owe
can’t pretend to be an attorney or from the government
can’t tell you that you’ll be arrested, or claim they’ll take legal action against you if it’s not true
Debt collectors can’t treat you unfairly. For example, they
can’t try to collect interest, fees, or other charges on top of the amount you owe, unless the original contract or a law says they can
can’t deposit a post-dated check early
can’t publicly reveal your debts, including by sending postcards or putting information on envelopes
What happens if a debt collector sues me?
If a debt collection lawsuit is filed against you in Kentucky, you will receive a civil summons and a copy of the “Complaint” which should say the name of the creditor, the amount of the debt, and the name of the attorney representing the creditor.
Under Kentucky law, once you are legally served, you have to respond in 20 days. To preserve your rights, respond and don’t ignore the lawsuit. Contact Legal Aid Society for representation before your 20 day deadline has passed.
Where do I report a debt collector for doing something illegal?
Report any problems you have with a debt collector to
contact an attorney
Besides reporting them, you may have the option to sue a collector, but you have to file your lawsuit within one year after the collector broke the law. If the judge agrees that the debt collector broke the law, you can awarded monetary damages and be reimbursed for you for attorney’s fee