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How do U.S. Debt Collection Laws Protect Me?

Sarah Edwards | April 29, 2024

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards 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: U.S. debt laws protect against unfair collection practices, ensure debt validation upon request, prohibit harassment, and restrict lawsuits beyond a statute of limitations. If you've been contacted about a debt, SoloSuit can help you respond to collectors and even make a plan to settle your debt once and for all.

The US government regulates debt collection issues and enacts laws to protect consumers. You may ask yourself, how do U.S. debt collection laws protect me? According to federal law, American consumers are protected against unfair, misleading, or aggressive debt collection practices.

Knowing your rights can help you push back against debt collectors as well as give you time to decide on how to handle your debt. Here’s an overview of the protections granted through current U.S. debt collection laws.

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If you've been sued by a debt collector, respond to the lawsuit to stand up for your rights and avoid default judgment.

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How do U.S. debt collection laws protect me from debt collectors?

There are currently two debt collection laws that protect you from debt collectors. The first is the Fair Debt Collection Practices Act, or FDCPA. This act regulates the activities of debt collection agencies and protects consumers against abusive or deceptive practices.

More recently, the Consumer Financial Protection Bureau (CFPB) established a Debt Collection Rule that dictates how debt collectors can communicate with you. Together, these laws establish clear boundaries for debt collectors and clarify the rights of consumers.

These laws restrict the activities of debt collectors — not your original creditors. Under the § 803 of the FDCPA, a "debt collector" is generally someone whose main job is to collect debts that are owed to others. This includes businesses that focus primarily on debt collection and those who regularly try to collect debts for someone else. It also covers creditors who might be collecting their own debts but use a different name to make it seem like another company is doing the collection.

Still, these laws protect you from debt collectors in several distinct ways.

Debt collectors must validate your debt

Under the CFPB’s Debt Collection Rule, debt collectors must validate your debt by providing you with information such as:

  • The name of your original creditor.
  • The account number associated with the debt.
  • How much money you owe.
  • Any payment history.
  • An itemized history of fees, payments, and credits.
  • Your current debt balance.
  • Information about how to dispute the debt.

When a debt collector contacts you in writing (or electronically), they must provide a validation notice. However, if you’re receiving phone calls from a debt collector, you can simply request that they validate your debt. In theory, they shouldn’t contact you again until they can prove that the debt is yours.

Use SoloSuit to validate your debt before moving forward.

Debt collectors cannot harass you

How often can a debt collector contact you? While the FDCPA stipulates that collectors can’t call more than once per day, the CFPB rule goes further. If you have a conversation with a debt collector, that debt collector may not call you again for a seven-day period.

But keep in mind that this rule applies only to phone calls and does not extend to other communication methods.

Debt collectors are also prohibited from engaging in harassing behavior under the FDCPA. This means that collectors may not:

  • Call before 8 a.m. or after 9 p.m.
  • Contact you multiple times per day.
  • Threaten you with arrest for failing to pay your debt.
  • Fail to identify themselves as a debt collector.
  • Contact you if they know you have an attorney.
  • Speak with your friends, family, or coworkers about your debt.
  • Send you mail with embarrassing information on the exterior of the envelope.
  • Post embarrassing information about you on social media.
  • Refuse to validate your debt.

It's important to keep all documents sent by a debt collectors and note down details of your conversations with them because, if they take legal action against you, this documentation can serve as evidence that could help you win the case. Plus, if the collector has violated the FDCPA, you may be eligible for compensation.

If your rights are violated, you can report collectors through the FTC website or by calling them at 877-382-4357. Additionally, you can report them to the CFPB using their website or by calling 855-411-2372.

You can dispute debts on your credit report

Legally, debt collectors are permitted to report your debt to the three major consumer credit bureaus. According to the CFPB’s guidelines, the collection agency may not report you to a credit bureau until:

  • They speak to you by phone or in person regarding your debt.
  • They send a communication (mail or electronic) about the debt.
  • They wait at least 14 days after sending a notice about your debt.

Once a debt collector reports you to a credit bureau, the Fair Credit Reporting Act grants you the right to dispute your debt. If you dispute the debt, credit reporting companies must:

  • Include a note on your credit report indicating that the debt is in dispute.
  • Investigate your dispute.
  • Provide copies of the documents you provide to the debt collector.
  • Reply to you with the final results.

This is also why it’s good to check your credit report periodically to pinpoint errors or unexpected debts.

Debt collectors may not sue you past the statute of limitations

Debt collectors sue you to recover unpaid debt. However, they have a limited time frame in which to do so. This is known as the statute of limitations, and once it expires, a debt collector can no longer use the courts to enforce a debt.

The statute of limitations varies by state and the type of debt. Check with your individual state to determine the statute of limitations on your debt.

Keep in mind that your debt doesn’t go away once this statute expires. It simply means that you can’t be sued over your debt.

If you are facing a lawsuit, watch the following video for tips on how to respond.

How do U.S. debt collection laws protect me if I’ve been sued?

What if you’ve already been notified of a lawsuit by a debt collector? You have the right to fight the lawsuit in court — but you have to act fast. Depending on your jurisdiction, you may have as little as 14 days to file an Answer to the lawsuit.

An Answer is a legal document indicating your willingness to contest the lawsuit. Failing to file promptly can result in a default judgment in favor of the debt collector. So, you should check your state’s deadline to respond as soon as you receive notice of a debt lawsuit and work to file your Answer into the case before the deadline is up.

How do you draft an Answer? SoloSuit can help. Just use the online tool to answer a few questions about your case, and the SoloSuit app will create a personalized Answer document for you. Then you can file the finished document with the local court, or you can have SoloSuit file it for you and have an attorney review your Answer prior to filing.

Let’s look at an example to see how this works:

Example: Janice had gotten behind in her credit card payments. She’d assumed that the debt collector was bluffing when they threatened to sue her. But soon enough, she received notice of a lawsuit. Janice turned to SoloSuit for help. Janice was able to quickly generate an Answer, which gave her time to create a plan for how to handle her debt.


Draft and file your Answer today with SoloSuit.

Know your rights under debt collection law

Knowing your rights can protect you from being manipulated by abusive debt collection practices. Don’t be afraid to push back against debt collection agencies and fight for a fair outcome.

If you know the debt is valid and you want to resolve the matter, consider debt settlement. You may be able to save money and pay off the debt for a lower amount in order to resolve it. Most debt collectors are willing to negotiate debt settlement, so don't be afraid to reach out. Use SoloSettle to start the settlement conversation and ensure that your rights are protected when dealing with collectors.

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FAQs about US debt collection laws

Am I able to control which debts my payments apply to?

Yes, you have control over which debts are paid off with each payment you send to a debt collector. If a collectors is pursuing you for multiple debt accounts, you have the right to control which account you pay off first.

Can a debt collector take money from my paycheck or bank account?

Yes, if a debt collectors sues you and the court orders a judgment against you, the collector can take money from your paycheck or bank account. This process is known as wage garnishment. Note that some types of income are protected from wage garnishment.

Can a debt collector take money from my federal benefits?

Typically, no. The following federal benefits are protected from wage garnishment by a debt collector:

  • Social Security benefits
  • Federal veterans benefits
  • Supplemental Security Income payments
  • Child support
  • Alimony payments
  • Unemployment compensation
  • Welfare benefits

However, if you owe unpaid child support, alimony, or taxes, these types of income may not be protected from wage garnishment.

Learn more here: How to Stop Social Security Wage Garnishment

How to Answer a Summons for debt collection in all 50 states

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The Ultimate 50 State Guide

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Civil law legal definitions

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