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Can Debt Collectors Lie to You?

Sarah Edwards | January 22, 2024

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Harris is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Debt collectors cannot lie to you. In fact, it is against the law for debt collectors to lie about who they, how much you owe, and more. In this article, SoloSuit explains how the Fair Debt Collection Practices Act (FDCPA) holds dishonest debt collectors accountable.

If you skim through the reviews for any debt collector, you’ll see that collection agencies may not always be the most upstanding — they may harass and intimidate consumers to get what they want. So naturally, you might wonder if collection agencies can legally lie to you to get you to pay up as well. Here’s what you need to know about debt collectors and the truth.

Can a collection agency legally lie to you?

The short answer here is “no.” The Fair Debt Collection Practices Act (FDCPA), a law passed in 1978, prohibits debt collectors from using deception and other unfair or abusive tactics to collect debts.

Unfortunately, some debt collectors still use these unethical tactics. Many people have been taught what not to say to debt collectors, but not everyone knows about their rights under the FDCPA.

If you’ve ever been targeted by a dishonest debt collector, you know how scary some of their lies can be. Here are some examples of false statements collectors have been known to make:

  • They will garnish your wages or seize your vehicle or other property if you don’t pay.
  • They will arrest you if you don’t pay.
  • They are attorneys or work for the government.
  • They work for a credit reporting agency.
  • By not paying a debt, you’ve committed a crime.

Some debt collectors also may try to collect more than the original debt, and especially unscrupulous ones may try to get you to pay a debt you never owed in the first place.

Debt collectors know pressure can make you pay

Often, dishonest debt collectors will use multiple unethical tactics or add an element of time pressure. The additional stress can overwhelm the consumer and make them pay without thinking. Let’s look at an example.

Example: Joey gets a call from a number he doesn’t recognize. He answers, and it’s a debt collector. They say he owes $105 from an old medical bill. Joey thinks that sounds questionable and starts to say so, but the agent cuts him off and says that if he doesn’t pay by 5 p.m. that day, he will be arrested and charged with non-payment. Joey barely has enough money to cover the $105, so he knows he can’t afford bail. And if he’s locked up and can’t get out, he knows he’ll lose his job, too. He goes ahead and pays the $105 to avoid upending his life.


If he had more time to think, Joey could have sent a Debt Validation Letter to make the company prove the debt was real.

Make debt collectors tell the truth about your debt.

On a side note, you might wonder — what happens if you lie to a debt collector? It’s actually perfectly legal for you to lie to a collector. The only exception is if you’re under oath.

What if the debt collector says they didn’t know the information was false?

The Consumer Financial Protection Bureau (CFPB) is committed to holding debt collectors accountable when they lie. But what if the lie was unintentional? After all, a representative for a debt collector could accidentally tell you something false. This is an argument a debt collector made in the legal case Carrasquillo v. CICA Collection Agency.

In this case, someone filed for bankruptcy, so debt collectors legally had to stop trying to collect debts. However, one collection agency mailed the person a letter saying they could be sued if they didn’t pay up.

Someone who has declared bankruptcy can’t be sued to recover debts. The debt collector claimed it didn’t know — and that it therefore wasn’t liable when it was sued for misrepresentation.

The CFPB is clear: Under the Fair Debt Collection Practices Act (FDCPA), collectors can be held accountable even when they claim they weren’t trying to be deceitful. In the Carrasquillo case, the CFPB filed an amicus brief explaining why the debt collector’s argument was incorrect. The brief goes into significant detail, but here’s a breakdown of some of the main points:

  • The plain text of the FDCPA shows that the prohibition of deceptive conduct applies whether the collector is intentionally deceptive or not.
  • Certain provisions of the FDCPA specify that they only apply when the debt collector acted knowingly — but the provision on deceptive conduct does not.
  • Some provisions in the FDCPA acknowledge that debt collectors can be held liable in civil court for accidental violations.
  • The Bankruptcy Code bars debt collectors from suing someone who has filed for bankruptcy.
  • The Bankruptcy Code does not forbid consumers from filing an FDCPA claim in this type of situation.

Essentially, a debt collector’s ignorance is not an excuse for violating your rights. That’s why it’s so important to know your rights as a consumer!

What else are debt collectors prohibited from doing?

Lying to collect a debt is a violation of the FDCPA, but the FDCPA also prohibits unfair or abusive tactics like these:

  • Sending mail with the outside of the envelope indicating it’s from a debt collector.
  • Attempting to contact you via an employer-provided email.
  • Calling you so frequently it constitutes harassment.
  • Threatening harm or violence.
  • Using profane or obscene language.
  • Communicating with you about the debt on social media (if your contacts can see the communication).

As you can see, the FDCPA doesn’t just protect you financially. It’s also designed to make it illegal for debt collectors to expose the fact that you allegedly owe a debt. And if you’re asking, “Why are debt collectors calling me for someone else?” it’s possible the collectors are doing more than annoying you — they might be violating the FDCPA, too.

Know what to do if you think a collector has broken the law

If you think a debt collector has violated the FDCPA, you have recourse. You might:

If at all possible, take a few minutes and at least file a complaint. The more people who stand up to debt collectors, the harder it gets for collectors to keep using unfair practices.

Can you sue for false collections?

But you might want to do more than just file a complaint. After all, debt collectors can sue you if you don’t pay, so you might be wondering: Can I sue for false debt collection?

You can, but there’s a caveat — you can usually only sue if you have actual damages (like medical bills or lost wages) stemming from their illegal collection practices. If you ask a lawyer, “Can I sue a collection agency?” they can help you determine whether a lawsuit would be worthwhile.

Has a debt collector already sued you? SoloSuit can help you draft and file an Answer in seconds.

Stand up to unethical debt collectors with SoloSuit

Debt collectors don’t want you to know your rights. But when you understand that you don’t always have to pay just because a debt collector says you do, you’re taking the first step toward a brighter financial future.

Whether you’re being harassed about a debt, are facing a debt collection lawsuit, or just want to know what not to say to a debt collector, SoloSuit is here to help!

Check out the following video to learn how to make debt collectors prove you owe money.

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