What debt collectors can do: 

While the thought of dealing with debt collectors can be daunting, it’s important to understand that they have certain legal powers and limitations. Debt collectors operate under the Fair Debt Collection Practices Act (FDCPA), a federal law that outlines their rights and responsibilities, as well as the rights of consumers. Additionally, many states have their own laws and regulations governing debt collection practices. 

 Here’s what debt collectors are permitted to do: 

• Contact you by phone, mail, or in person: Debt collectors are allowed to contact you to discuss the debt you owe and attempt to collect payment. However, they must follow certain rules regarding communication methods and timing (more on that below). 

• Request information about your income and assets: Debt collectors may ask for information about your income, assets, and overall financial situation to assess your ability to repay the debt. 

• Negotiate payment plans or settlements: Debt collectors can offer you the opportunity to set up a payment plan or negotiate a lump-sum settlement for a reduced amount. 

• Report the debt to credit bureaus: If you fail to repay the debt, debt collectors can report the delinquency to major credit bureaus, which can negatively impact your credit score. 

• Take legal action: In some cases, debt collectors may pursue legal action against you, such as filing a lawsuit to obtain a court judgment for the outstanding debt. In some cases, the can even garnish your wages.  

What debt collectors cannot do: 

While debt collectors have certain powers, they are also subject to strict limitations and prohibited practices under the FDCPA and state laws. Here’s what debt collectors cannot do: 

• Harass, oppress, or abuse you: Debt collectors are prohibited from using abusive language, making threats of violence or harm, or engaging in conduct that could be considered harassment. 

• Deceive or mislead you: Debt collectors cannot lie about the amount of debt owed, misrepresent their authority or identity, or provide false or misleading information. 

• Contact you at unreasonable times or places: Debt collectors cannot call you before 8 a.m. or after 9 p.m. local time, or contact you at your workplace if you’ve informed them that such contact is not permitted. 

• Discuss your debt with unauthorized third parties: Debt collectors cannot disclose your debt to anyone other than you, your spouse, or your attorney, unless they obtain your explicit permission or a court order. 

• Collect more than you legally owe: Debt collectors cannot attempt to collect interest, fees, or charges that are not legally permitted or authorized by the original creditor agreement. 

Your rights as a consumer: 

As a consumer, it’s crucial to understand your rights when dealing with debt collectors. The FDCPA and state laws provide several protections, including: 

• The right to dispute the debt: You have the right to request validation of the debt from the collector, requiring them to provide written proof of the debt’s legitimacy within a specified timeframe. 

• The right to request communication in writing: You can demand that debt collectors communicate with you only in writing, effectively stopping phone calls and in-person contacts. 

• The right to limit communication at work: You can inform debt collectors that you cannot receive calls or communications at your workplace, and they must comply. 

• The right to seek legal assistance: You have the right to consult with an attorney or seek legal representation to protect your rights and negotiate with debt collectors on your behalf. 

• The right to report violations: If a debt collector engages in abusive, deceptive, or illegal practices, you have the right to report them to the appropriate regulatory agencies, such as the Consumer Financial Protection Bureau (CFPB) or your state’s attorney general’s office. 

Resolve your debt 

Of course, the best way to deal with debt collectors is to resolve your debt. At JG Wentworth, we’ve helped countless individuals resolve their debt through our Debt Relief Program.* In fact, if you have $10,000 or more in unsecured debt, there’s a good chance you’ll qualify and get the JGW advantage: 

• One monthly program payment 

• We negotiate on your behalf 

• Average debt resolution in as little as 48-60 months 

• 24/7 support 

• We only get paid if we settle your debt 

If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs.