What Can and What Can't Debt Collectors Do

Millions of Americans have debts that have been sent to collections. While the process can be stressful, it should not be abusive, threatening, harassing, or deceptive in nature. Federal and state laws limit what debt collectors can and cannot do. Understanding these protections is the first step towards asserting your legal rights.

The attorneys at the Muter Law Office represent debtors in collection matters, protecting them against aggressive and unlawful debt collection practices. Here, we explain key legal protections provided under the federal Fair Debt Collection Practices Act (FDCPA) and Wisconsin’s Consumer Act, which provides additional legal protections for Wisconsin residents.

What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is the primary federal law that governs debt collection practices. It limits what debt collectors can do to collect a debt, prohibiting them from using abusive, unfair, or deceptive debt collection practices. The FDCPA applies to debts for personal, family, or household purposes. It does not apply to business debts, and generally does not apply to debt collection efforts by the original creditor or business to whom money is owed.

What Limitations Does the FDCPA Impose on Debt Collectors?

The FDCPA imposes strict limitations on when and how debt collectors can contact debtors. This federal law generally applies to debt collection companies and attorneys, but does not apply to debts owed to the original creditor.

Time and Place

Debt collectors are prohibited from contacting debtors at a time or place they know would be inconvenient or embarrassing to them. Debt collectors are generally prohibited from contacting you before 8 a.m. and after 9 p.m. Additionally, if a debt collector knows you are not permitted to receive personal calls at work, they are not permitted to contact you there.

Harassment

Debt collectors cannot harass the debtor, or anyone else, in person or over the phone, including via text or email.

False or Misleading Statements

Debt collectors are prohibited from lying or using deceptive practices to collect a debt. For example, they cannot claim to be an attorney or government representative, misrepresent the amount you owe, falsely claim you have committed a crime, or threaten legal action they do not intend to take.

Contacting a Debtor After a Request to Stop

You have the right to ask a debt collector to stop contacting you. Once a debtor sends a cease-and-desist letter, the debt collector can only make contact to notify you that they will cease contact with you, other than to provide notice of specific actions, such as filing a lawsuit.

Discussing Debt with Third Parties

Debt collectors are prohibited from sharing information about a debt with anyone other than the debtor, their spouse, or their attorney. The debt collector cannot contact your family, friends, or employer to discuss the debt.

Communication on Social Media and Other Electronic Means

A debt collector cannot use social media to post publicly about a debt they claim is owed. They can, however, contact a debtor privately, such as through a messaging service or using email or text messaging. If a debt collector uses electronic means to contact a debtor, they must offer a reasonable and simple method for the debtor to opt out.

Debtor Represented by an Attorney

If a debt collector knows you are represented by an attorney regarding a debt, they must not contact the debtor directly and should contact the attorney instead. If a debt collector calls you, provide the name of your attorney and tell the debt collector to contact the attorney directly.

What Information Are Debt Collectors Required to Provide When Trying to Collect a Debt?

When a debt collector contacts you, they must validate the debt by providing the following information:

• A statement that the communication is from a debt collector
• The name of the creditor
• The account number associated with the debt

• The current total amount of the debt.
• An itemized breakdown of the debt that details interest, fees, payments, and credits accrued since a specified date

• How to reply to the debt collector and how to dispute the debt
• The end date of the 30-day period for disputing the debt

How to Dispute a Debt

After receiving the debt validation information, you have 30 days to dispute the debt in writing. Reasons for disputing a debt include:

• You don’t owe the debt
• You paid the debt
• The debt amount is incorrect

What Limitations Does Wisconsin Impose on Debt Collectors?

Wisconsin state laws offer protections similar to those under the Federal FDCPA, and go a step further by providing Wisconsin residents additional protection in debt collection matters. Under the Wisconsin Consumer Act, many of the federal debtor protection laws that only apply to debt collectors are extended to original creditors.

Why Choose Muter Law for Bankruptcy Assistance

The bankruptcy attorneys at Muter Law Office can help protect against unfair debt collection practices. We help debtors who are struggling to make payments on their mortgages, loans, or other debts, and work to end harassment and ensure fair treatment under the law. We offer practical, cost-effective solutions to complex legal issues. We can evaluate your situation and provide advice and guidance to help you decide whether filing for bankruptcy is the right decision for you.

Contact the Bankruptcy Attorneys at Muter Law Office Today

Contact the Muter Law Office today to schedule a confidential appointment to discuss your situation and how we can assist you.