People who owe money, or "debtors," are protected by a federal law called the Fair Debt Collection Practices Act (FDCPA). The law says what third party debt collectors can do and what they can't do when trying to collect a debt. A third party debt collector is not the orignal creditor. It is a separate party that collects on your account. The law also gives rights to debtors who have been treated wrong by third party debt collectors. The information here explains:

• What kinds of debts and debt collectors are covered by the law,
• What third party debt collectors can do and what they can't do under the law, and
• What rights you have as a debtor.

What is a [no-lexicon] debt collector[/no-lexicon]?

A third party debt collector is a person or company that regularly collects debts owed to another person. A company that is collecting its original debts is not considered a third party debt collector. Typical third party debt collectors are collection agencies and collection lawyers. 

Some people and companies, called debt buyers, have purchased the accounts from the original creditor. Even though they now own the debt and are collecting it for themselves, they are also considered third party debt collectors.

What debts are covered by the law?

The law only covers personal, family, or household debts. Examples of these debts are money that you owe from buying furniture or a car, medical bills, and credit card purchases. Business debts are not covered. Other debts not covered include:

• Child support,
• Fines for parking and other code violations, and
• Damages owed as a result of a car accident or property damage. 

How and when can a third party debt collector contact me?

A third party debt collector is allowed to contact you in person, by mail, or by other ways. They can only contact you between the hours of 8:00AM and 9:00PM unless you agree to let them contact you at other times. 

Third party debt collectors can contact you at your job unless they know that your employer does not allow this. If the third party debt collector calls you at your job, they can't say anything that would let your employer or anyone else know that you owe a debt.

Can they contact my friends and family?

Yes. Third party debt collectors are allowed to talk with other people to find out where you live or work. But they can't tell them that you owe a debt.

What if I have a [no-lexicon]lawyer[/no-lexicon]?

If you have a lawyer, the third party debt collector can only contact the lawyer about your debt. 

How do I stop a third party debt collector from bothering me?

If you have a lawyer, the lawyer can write to the third party debt collector and tell them to stop contacting you. 

If you don't have a lawyer, you can write a short letter to the third party debt collector to tell them to stop contacting you. Always keep a copy of anything you send to a third party debt collector. If you fax a letter or send email to a debt collector, make sure to keep an electronic record of what you sent.

Our Stop Contact from a Collection Agency interview will automatically prepare your letter for you. You may then print the letter and send it to the third party debt collector who has been contacting you.

What will the third party debt collector tell me about my debt?

Within 5 days after first contacting you about your debt, the third party debt collector is supposed to give you this information in writing: 

• The amount of your debt,
• The name of the person or company you owe the money to,
• A statement that the debt will be assumed to be correct unless you dispute it within 30 days, and
• Information about what you should do if you believe you do not owe the money.

What do I tell the third party debt collector if I believe I do not owe the debt?

If you are contacted by a third party debt collector, and you do not believe you owe the money, you should write a letter to them. Explain that you do not owe the debt. Do this within 30 days after you are first contacted. 

Your letter to the third party debt collector should include your name, address, the account number, and an explanation of why you do not believe you owe the money. For example, you may have already paid the debt, or the debt may be much smaller than the amount listed by the third party debt collector.

If you send this letter within 30 days from the date that the third party debt collector first contacted you, the third party debt collector must stop collection on the debt. They can start again once they send a validation or proof to you that the debt is correct.

You can still dispute the debt after the 30-day dispute period, but the third party debt collector does not have to stop trying to collect the debt.

What are some things that are illegal for debt collectors to do?

Harassment

A third party debt collector can't:

• Threaten you with violence,
• Publish a list of people who don't pay their debts with your name on it,
• Use obscene or profane language in conversations with you, or
• Call you repeatedly to annoy you.

False statements

A third party debt collector can't:

• Pretend that they are an attorney or that they work for the government,
• Lead you to believe that you have committed a crime,
• Misrepresent the amount or status of your debt,
• Lead you to believe that non-payment will result in your arrest or imprisonment,
• Say that they will seize, attach, or sell your property or garnish your wages unless they intend to attempt this,
• Lead you to believe that they are sending you court or government documents if they are not,
• Communicate or threaten to communicate false credit information about you to any person,
• Falsely claim that because the debt was transferred that you have lost any defense you might have had,
• Falsely claim that they work for a credit bureau,
• Threaten to sue you if that is not legally possible, or
• Use a false name.

Unfair methods

A third party debt collector can't:

• Make you accept collect telephone calls,
• Take your property or threaten to do so unless it is done legally,
• Deposit any post-dated check before the date on the check,
• Collect any amount from you that was not included in the agreement you signed,
• Use a postcard to contact you about a debt, or
• Use any name or symbol that suggests the name of a debt collector on the outside of an envelope that is sent to you.

What can you do when the third party debt collector breaks the law? 

You can sue a third party debt collector who violates the FDCPA. You can get money if the court finds that the third party debt collector broke the law. You can also get lawyer's fees and court costs. The FDCPA says that you have one year from the date when the third party debt collector broke the law to file a case. You should talk to a lawyer if you think a third party debt collector has broken the law in dealing with you.