5 Things Debt Collections Aren't Able to Do -- and 5 They Can

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5 Things Debt Collectors Can't Do and 5 Things Debt Collectors Can
Debt collectors have limitations on the manner in which they can pursue you for payment, but they are allowed to take legal action against you.
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. On "Smart Money" Sean talks with Nerds across NerdWallet's NerdWallet Content team to answer listeners' personal finance questions. With a focus on shrewd and practical advice on money, Sean provides real-world guidance that can help consumers better in their finances. In addition to answering listeners' financial questions on "Smart Money," Sean also interviews guests outside of NerdWallet and creates special segments to explore topics such as the racial wealth gap, how to start investing and the history for student loans.
Before Sean took over podcasting at NerdWallet, he covered topics that dealt with consumer debt. His work has appeared in USA Today, The New York Times as well as other publications. When he's not writing about personal finance, Sean can be found playing in the garden, taking runs , and walking his dog for long walks. Sean is located in Ocean Shores, Washington.





Mar 24, 2022


Written 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 at The Oregonian in Portland in capacities such as chief of the copy desk and team director of design and editing. Previous experience included copy and news editing for many Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor's in mass communication and journalism at The University of Iowa.







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If you feel powerless when dealing with debt collectors, know that their tactics are limited by the .
Here are five things -people who are attempting to take on a debt on behalf of another creditor, and five they can.
5 things that debt collectors aren't able to do
1. Visit your workplace
Under the FDCPA it is against the law an individual to visit your work place to collect payment. The act prohibits publicizing your debts and bringing in your workplace to collect your debts. This means that debt collectors cannot harass you personally at work.
But, a debt collector similar to the credit card company may call you at work, though they can't reveal to your colleagues that they are debt collectors. If you request the debt collector to not contact you while at work, then by law, they must stop.
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2. Harass you
The harassment of debt collectors may come in a variety of ways:
Numerous calls.
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
It is not possible to be arrested to collect a debt to an individual debt collector.
However, if a debt collector sues you over the debt, and you don't attend the court, you could lose in default and be required to pay. Then if you defy that or the court's orders, then that collector may pursue an arrest warrant.
4. Pursue you for debt you don't owe
The industry of debt collection is full of errors. Incomplete or inaccurate documentation can lead a debt collector to seek out the wrong person to payment, or even pursue the right person to pay the debt that they have already paid. This issue isn't uncommon, but it's illegal.
If you are unsure about the amount of debt you're required to pay, you should start by doing a an examination of the credit report. They can be obtained for free by .
Be aware that collectors can contact their family or executor to discuss debt repayment, but they cannot misrepresent whether someone is obligated to pay those debts.
5. Call you whenever they want
Collectors of debt aren't allowed to call you prior to eight a.m. and after 9 p.m. You can request that a debt collector stop calling or writing to inquire of payment for a debt. Your obligation to pay for the amount owed is not over, however.
>> LEARN:
5 things debt collectors can do
1. Seek payment on an expired debt
All debts that are unsecured, such as medical bills or credit cards have a . After this date, the debt has been "expired" and you cannot be sued to recover the debt. But , you're still owed, and debt collectors can still pursue payment for the financial obligations that were previously due.
2. Pressurize you
Although debt collectors aren't able to make threats or lie to you, they can use pressure to get payment. This pressure can include daily calls, frequent letters, or talk about pursuing the possibility of suing for payment of the debt -- as it is within the limits of the law.
3. You can sue you to pay an outstanding debt
The debt collector can be an attempt to collect debt as a last resort. The lawsuits usually lead to wage garnishment as well as bank levies or both, as the majority of creditors don't show up in court and are subsequently unable to pay.
4. Sell your debt
A debt collector can sell debts it isn't in a position to collect, or sell the remainder if only partial payment was made. So if one debt collector ceases to contact you regarding the debt, don't be surprised if another starts. If you decide to make a payment on a debt in full, be sure that you put the agreement written to be able to prove that you did so.
5. Talk about what you are owed
Since debt collectors purchase debts for pennies on the dollar, they have fairly large profit margins if they are able to collect the initial amount owed. This gives them greater flexibility in negotiating a payment with consumers. You might be able in negotiating settlement of 25 percent or even 30% of the debt you initially owed. Make sure to get the agreement in writing, so you can show proof that the debt was considered to be paid in full in the amount of the settlement agreed-upon.
>> MORE:



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







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