Debt collectors are companies whose job is to get people to pay their bills. They have to follow the rules when they collect debts. This article goes over some of those rules.

What laws do debt collectors have to follow?

There are two major laws debt collectors must follow:

• Fair Debt Collection Practices Act (FDCPA)
• Illinois Collection Agency Act

Can debt collectors sue me?

Yes. They can sue you, or threaten to sue you, in court. They can send you letters or call you. 

Within 5 days of the first time they contact you, debt collectors have to send you a written notice about the debt (see below).

If you receive a Complaint and Summons, this means a lawsuit has been filed. It is important to respond to a debt collection lawsuit or you may have a default judgment entered against you. 

If they sue me, will I automatically lose?

Not necessarily. Before a debt collector sues you, your debt may have been bought and sold (or "assigned") mulitple times by debt buyers, who are in the business of buying debts.

Debt collectors must prove that they own the debt when they file a lawsuit. If the debt collector is the original creditor, the collector must attach a copy of the original written agreement or contract for the loan between you and the creditor. 

If the debt was sold or assigned prior to the lawsuit, proof of the assignment must be provided. The written assignment must be attached to the lawsuit. 

If they do not provide the required documents, you may be able to get the judge to dismiss the case.

There are other reasons you may be able to get the case dismissed, too. You should talk to a lawyer to make sure you know all of your options. If the debt buyer broke the rules, the judge may force them to pay for your lawyer's fees. So you may be able to get a lawyer even if you can't afford one.

Is there anything I can do to stop the debt collector from contacting me?

Yes. There are two things you can do.

Stop contacting letter

You can send them a letter telling them that:

• You cannot pay the debt;
• You will not pay the debt; and 
• That the debt collection agency should stop contacting you.

If you do, they are no longer allowed to contact you. Use our Request to collection agency to stop contacting Easy Form program to help you write the letter.

[no-lexicon]Collection proof debtor letter[/no-lexicon]

If your income is below a certain amount, you can also send a letter telling them that you are "collection proof." This means that all of your money is protected. Learn more about the Collection proof debtor letter.

What are the rules for written notices from a debt collector?

A written notice from a debt collector must contain: 

• Amount you owe,
• Name of creditor,
• Information about how you can challenge the debt, and
• Details about how to request written proof the debt exists.

What can't the debt collector do?

The debt collector cannot:

• Force you to pay,
• Use obscene language,
• Threaten to harm your reputation or your property,
• Harass you or your family on the phone,
• Falsely claim to be a lawyer,
• Use postcards or envelopes which indicate the company contacting you is a debt collector, or
• Contact people other than you about your debt.

If a collection agency does any of these things, you may have a lawsuit against them for actual and statutory damages.

You may also file a complaint against them with the following groups:

Consumer Financial Protection Bureau 
PO Box 27170
Washington, DC 20038
 

Federal Trade Commission
Consumer Response Center
Federal Trade Commission
600 Pennsylvania Ave., NW
Washington DC 20580
1-877-FTC-HELP (382-4357)

Consumer Complaint Online Submission Form with Illinois Attorney General
100 W. Randolph St., 13th floor
Chicago, IL 60601
1-800-386-5438

You can also file a lawsuit in federal court. Talk to a consumer advocate lawyer about this option.

Does a debt collector need a license?

Yes. A debt collector in Illinois must be licensed with the Illinois Department of Financial and Professional Regulation before doing collections actions like filing a lawsuit. If you are contacted by someone who is trying to collect a debt, you can check with the Department if they are licensed.