Laws Regulating Debt Collectors: FAQ

January 11, 2009

Below are some questions our office frequently receives.

The collection agent I spoke to was very threatening and called me in the middle of the night. Is this legal?

No, such collection techniques are not legal.

Collection agencies must by law follow certain detailed procedures when contacting a consumer by mail or phone. Collection agencies must also by law provide you with certain information about your rights.

You can sue a collection agency if it breaks these laws in its communications with you.

How can I prove a debt collector broke the law?

To help you prove your case, it is very important that you save all letters and voicemails from collection agencies.

You should also save all old statements, the original account agreement, and any other documents you have for the account.

We do not recommend dealing with collection agencies over the phone. But, if you decide to speak with a collection agency over the phone, you may want to consider taping all phone calls. In Maryland, you must by law get the other partyÂs permission before recording a call.

Also, save any recorded phone messages from collection agencies. If you speak with a collection agent over the phone, make detailed notes about the phone call as soon as you hang up, even if you are recording the call.

And, if you have an attorney, the collection agency must by law (1) stop contacting you about the account and (2) direct all communications about the account to your attorney.

What kinds of debt collector contacts are prohibited by law?

Many state and federal laws regulate debt collection activities. In some cases, a consumer can sue a debt collector if it violates these laws. Below is a partial list of illegal debt collector activities.

You should contact an attorney for more information if you think a debt collector has behaved inappropriately or made suspicious statements to you.

Even if you donÂt see a description below that fits your situation, there may be other laws that apply.

Harassment. A debt collector may not:

Threaten violence or harm.

Refuse to identify him- or herself and the fact he or she is a debt collector.

Advertise or publish a debt. (Exception: it usually may report the debt to credit bureaus.)

Use obscene language.

Call very early, very late, or in an otherwise harassing pattern.

Contact you by postcard in an attempt to embarrass you.

Charge you for collect calls.

Contact neighbors, employers, or family members about your debt. (This is illegal in most cases.)

Continue to contact you about a debt after you have informed the collector that an attorney represents you.

False Statements Prohibited. A debt collector may not make false statements when trying to collect a debt. Some examples are:

Falsely implying that a debt collector is an attorney, police officer, or government representative.

Falsely implying that a consumer can be arrested or imprisoned for not paying a debt.

Falsely claiming or implying to be affiliated with a credit bureau.

Misrepresenting the amount or legal status of the debt.

Sending fake Âlegal papersÂ in an attempt to collect on a debt.

Telling a consumer that a letter is not a legal document when it is.

Telling a consumer a lawsuit is in progress when that is not true.

Telling a consumer the debt collector will seize the consumerÂs property or wages. (This is an illegal threat unless the debt collector both has the legal right to do so and intends to do so soon.)

Telling a consumer the debt collector will garnish his or her paycheck “immediately” or “next week,” when there is no final legal judgment in place. Garnishments usually cannot take place until a creditor or debt collector gets a final court judgment against the consumer.

Telling a consumer she or he will be sued. (This is an illegal threat unless the debt collector both has legal grounds to sue and intends to do so soonÂ not months or years later.)

Making contradictory statements about a consumerÂs legal rights. For example: in one paragraph, a collectorÂs notice might inform a consumer of his legal rights, but in the next paragraph the collector might write, Âyou waive all of the above rights if we donÂt hear from you in 30 days.Â