5 Things Debt Collections Aren't Able to do -- but 5 Things Debt Collectors Can

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5 Things Debt Collections Aren't Able to Do -- and 5 They Can
Debt collectors have limitations on what they can pursue for money, however, they can take legal action against you.
Written by Sean Pyles Senior Writer | Personal finances, credit, and personal finance Sean Pyles leads podcasting at NerdWallet as the host and producer of NerdWallet's "Smart Money" podcast. In "Smart Money" Sean talks with Nerds across NerdWallet's NerdWallet Content team to answer listeners' personal finance questions. With a focus on thoughtful and practical advice on money, Sean provides real-world guidance that can help consumers better their financial lives. Beyond answering listeners' money questions on "Smart Money," Sean also interviews guests who are not part of NerdWallet and produces special segments on topics like the racial wealth gap and how to begin investing, and the history for student loans.
Before Sean took over podcasting at NerdWallet He also covered issues concerning consumer debt. His work has appeared throughout the media including USA Today, The New York Times and other publications. When when he's not writing about personal finance, Sean can be found working in the garden, taking runs , and taking his dog on long walks. He lives within Ocean Shores, Washington.





Mar 24 2022


Edited by Kathy Hinson Lead Assigning Editor Personal finance, credit scoring, debt and money management Kathy Hinson leads the core personal finance team at NerdWallet. In the past, she worked for 18 years working at The Oregonian in Portland in capacities such as chief of the copy desk and team editor and designer. Prior experience includes news and copy editing for several Southern California newspapers, including the Los Angeles Times. She received a bachelor's degree in mass communication and journalism in the University of Iowa.







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If you feel powerless when confronting debt collectors, know that their tactics are limited by .
There are five things- those who take on a debt on behalf of a creditor -- can't do and five things they could.
5 things that debt collectors aren't able to do
1. Go to work
In the context of the FDCPA, it's illegal for anyone to show up at your workplace to collect payment. The law prohibits you from releasing your debts and showing on your work premises to collect debts. This means that collectors of debt cannot contact you personally at work.
But, a debt collector, like an organization that deals with credit cards, might call you while at work, though they aren't able to tell the other employees that they're debt collectors. If you ask the debt collector not to contact you at work, they are required to stop.
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2. Harass you
Harassment from a debt collector can come in a variety of forms:
Calls repeatedly.
Threats of violence.
Publishing information about you.
Obscene or abusive language.

All of them are unlawful under the law on debt collection practices.
3. Arrest you for debt
You can't be arrested on a debt that you owe to the debt collector.
However, if a debt collector seeks to sue you for the debt, and you don't appear in the court, you could lose in default and be required to pay. Then if you defy that or the court's orders, then that debt collector could seek an arrest warrant.
4. Pursue you for debt you don't owe
The field of debt collection is full of errors. Incorrect or incomplete documentation could cause a debt collector to pursue the wrong person for payment, or to pursue the right person for a debt he or she already paid. This problem isn't unusual but it's not legal.
If you doubt the amount of debt you're required to pay, you should start by doing a an examination of your credit reports. You can get them at no cost by .
Be aware that collectors are able to contact their family or executor to discuss debt repayment, but they can't lie about whether someone is legally bound to settle the debt.
5. You can contact them at any time they'd like
Debt collectors can't call you prior to the time of 8 a.m. and after nine p.m. You may request that a debt collector stop calling or writing to inquire of payment on the debt. Your obligation to pay for the amount owed is not over, however.
>> LEARN:
5 things that debt collectors are able to do
1. Make sure you pay off an outstanding debt
All debts with no security, such as medical bills and credit cards, have a . At the time of this date, the debt becomes "expired" meaning that you aren't able to be sued for payment. But you still owe it, and debt collectors can still seek payment on the financial obligations that were previously due.
2. Pressure you
While debt collectors cannot threaten you or mislead you, they may use pressure to get payment. The pressure could include constant calls, frequent letters, or talk about pursuing the possibility of suing for payment of the debt, as long as they stay within the bounds of the law.
3. You can sue you to pay a debt
The debt collector can be an attempt to collect debt as a last resort. The lawsuits usually lead to the garnishment of wages or bank levies, or both, since the majority of people who are in debt don't appear in the court, and they lose because of default.
4. Sell your debt
A debt collector could be able to sell debt it was not in a position to collect or even sell the rest even if only a small amount of payment was made. If one collector ceases to contact you regarding an outstanding debt, don't get shocked if another one starts. If you pay off a debt in full, be sure you have the agreement in writing to prove that you did so.
5. Negotiate the amount you have to pay
Because debt collectors purchase debts at pennies on the dollar, they can make high profit margins when they can collect the amount originally due. This gives them more flexibility when negotiating payments from consumers. You may be able to negotiate a settlement that is 25% or 30% of the debt you initially were owed. Again, get the agreement written down so that you have proof the debt was to be paid in full in the agreed-upon settlement amount.
>> MORE:



Author bios: Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His writing has appeared on The New York Times, USA Today and elsewhere.







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