5 Things Debt Collectors can't do -- but 5 They Can

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5 Things Debt Collectors Can't Do -- and 5 They Can
Debt collectors have limitations on what they can pursue to collect money, however they are allowed to pursue you for a lawsuit.
By Sean Pyles Senior Writer | Personal finances, financial debt Sean Pyles leads podcasting at NerdWallet as the producer and host of the NerdWallet's "Smart Money" podcast. The show "Smart Money," Sean talks with Nerds on NerdWallet's NerdWallet Content team to answer the questions of listeners about their personal finances. With a focus on shrewd and actionable financial advice, Sean provides real-world guidance to help people improve in their finances. In addition to answering listeners' financial questions on "Smart Money" Sean also interviews guests outside of NerdWallet and also creates special segments to explore topics such as the racial wealth gap and how to begin investing, and the history for student loans.
Before Sean lead podcasting for NerdWallet the company, he also wrote about topics related to consumer debt. His work has appeared in USA Today, The New York Times as well as other publications. When when he's not writing about personal finances, Sean can be found digging around his garden, going for runs and walking his dog for long walks. He lives in Ocean Shores, Washington.





Mar 24, 2022


Editor: Kathy Hinson Lead Assigning Editor Personal finances, credit scoring financial management and debt Kathy Hinson leads the core personal finance team at NerdWallet. In the past, she worked for 18 years with The Oregonian in Portland in positions such as copy desk chief and team editor and designer. Her previous experience includes copy and news editing for several Southern California newspapers, including the Los Angeles Times. She earned a bachelor's degree in journalism and mass communications from The University of Iowa.







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If you are feeling powerless confronting debt collectors, know that their tactics are limited by the .
Here are five things -the people who are able to collect obligation on behalf another creditor -- can't do and five things they could.
5 things that debt collectors shouldn't do
1. Come to your workplace
Under the FDCPA it is against the law an individual to visit your workplace to collect payment. The law prohibits the publicizing of your debts, and showing on your work premises to collect your debts. So, debt collectors cannot harass you personally at work.
However, a debt collection agency as well as a credit card company, may call you at work, but they're not able to inform your colleagues that they are debt collectors. If you ask the debt collector to not contact you while at work, then by law, they have to cease their calls.
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2. Harass you
Harassment from debt collectors may come in a variety of ways:
Calls repeatedly.
Violence threats.
Publishing information about you.
Language that is abusive or vulgar.

All of them are unlawful under the act on debt collection practices.
3. Arrest you for debt
You aren't able to be detained for a debt you owe to the debt collector.
If a debt collector pursues you for debt and you fail to show up in court, you may lose in default and be required to pay. If you don't comply with the judge's order, that debt collector could seek an arrest warrant.
4. Pursue you for debt you don't owe
The industry of debt collection is plagued by inaccuracies. Incomplete or inaccurate documentation can cause a debt collector to pursue the wrong person for payment, or to pursue the right person to pay the debt that they have already paid. This issue isn't uncommon but it's not legal.
If you doubt a debt you're being asked to pay, start with an examination of the credit report. They can be obtained at no cost by .
Be aware that collectors are able to contact their family or executors to discuss payment, but they are not able to misrepresent whether someone is obligated to settle the debt.
5. Call you whenever they want
Collectors of debt aren't allowed to call you prior to 8 a.m. and after 9 p.m. You can request that a debt collector stop calling or writing in pursuit of payment on the debt. Your obligation to pay for the debt is still there, however.
>> LEARN:
5 things debt collectors can do
1. Seek payment on an expired debt
All unsecured debts, like credit cards and medical bills are subject to a . After this date, the debt has been "expired" meaning that you aren't able to be sued for repayment. But you still owe it and debt collectors may still seek payment on the financial obligations that were previously due.
2. Pressure you
While debt collectors cannot threaten you or mislead them, they are able to make use of pressure to collect payments. The pressure could include constant calls, letters that are frequently sent, or talk about pursuing an action to collect the debt -- as long as they remain within the limits of the law.
3. Pay you in full for a debt
The debt collector can be an last resort. The lawsuits usually lead to the garnishment of wages, bank levies or both, since the majority of debtors don't show up to court and are subsequently unable to pay.
4. Sell your debt
A debt collector could sell debts it isn't in a position to collect and also sell the remaining balance if only partial payments were made. Therefore, if one debt collector doesn't contact you anymore about the debt, don't be amazed if a new one begins. If you do pay off a debt in full, be sure you get the agreement in writing to be able to prove that you did so.
5. Talk about what you are owed
Because debt collectors purchase debts for pennies per dollar, they can make large profit margins if they are able to collect the initial amount owed. This gives them greater flexibility when negotiating payments from the consumer. It is possible to negotiate a settlement that is 25 percent or 30 percent of what you originally owed. Also, make sure you get the settlement agreement written down so that you can show proof that the debt was deemed to be paid in full for the agreed-upon settlement amount.
>> MORE:



The author's bio: Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His writing has been featured in The New York Times, USA Today and elsewhere.







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