5 Things Debt Collectors can't Do -- and 5 They Can

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5 Things Debt Collectors can't Do -- and 5 They Can
The debt collectors are restricted in how they can pursue you for money, however, they are allowed to sue you.
Written by Sean Pyles Senior Writer | Personal finances and debt Sean Pyles leads podcasting at NerdWallet as the host and producer of NerdWallet's "Smart Money" podcast. On "Smart Money," Sean talks with Nerds from the NerdWallet Content team to answer the questions of listeners about their personal finances. With a particular focus on sensible and practical advice on money, Sean provides real-world guidance that will help consumers improve their financial lives. Beyond answering listeners' money questions on "Smart Money" Sean also interviews guests outside of NerdWallet and creates special segments on topics like the racial wealth gap and how to begin investing, and the history of college loans.
Before Sean was the host of podcasting for NerdWallet, he covered topics concerning consumer debt. His writing has been featured throughout the media including USA Today, The New York Times and other publications. When Sean isn't writing about personal finance, Sean can be found working in the garden, taking walks, or 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, financial management and debt Kathy Hinson leads the core personal finance team at NerdWallet. In the past, she worked for 18 years at The Oregonian in Portland in positions such as copy desk chief and team director of design and editing. Previous experience included news and copy editing at several Southern California newspapers, including the Los Angeles Times. She received a bachelor's degree in mass communications and journalism at the University of Iowa.







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If you are feeling helpless dealing with debt collectors know that their tactics are limited by the .
There are five things- those who take on a obligation on behalf a creditor and five they should.
5 things that debt collectors aren't able to do
1. Go to work
Under the FDCPA It is illegal anyone to show up at your workplace to collect payments. The law prohibits the publicizing of your debts and bringing in your workplace to collect debts. So, debt collectors cannot harass you in-person at your work.
However, a debt collector similar to an organization that deals with credit cards, might call you while at work, even though they can't reveal to your co-workers that they are debt collectors. If you request the debt collector to not contact you at work, then by law, they are required to stop.
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2. Harass you
Harassment by debt collectors may come in a variety of forms:
Calls repeatedly.
Afraids and threats of violence.
Publicizing information about you.
Language that is abusive or vulgar.

All of them are unlawful under the act on debt collection practices.
3. Arrest you for debt
You can't be arrested on a debt that you owe to a debt collector.
However, if a debt collector seeks to sue you for debt and you fail to attend court, you may lose by default and be ordered to pay. If you refuse to comply with that judge's order, that debt collector could seek 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 cause a debt collector to seek out the wrong person to payment, or to pursue the right person to pay a debt he or she already paid. This isn't a rare occurrence but it's not legal.
If you are unsure about the amount of debt you're required to pay, you should start by doing a an examination of Your credit history. You can get them for free through .
Remember that collectors may contact family members or executor to discuss payment, but they are not able to make up a false impression that someone is obliged to pay those debts.
5. Call you whenever they want
The debt collectors are not allowed to contact you after 8 a.m. or at any time after 9 p.m. You can also ask that a debt collector cease making calls or writing letters in pursuit of payment on a debt. The obligation to pay the debt is still there, however.
>> LEARN:
5 things debt collectors can do
1. Seek payment on an expired debt
All debts with no security, such as credit cards and medical bills, have an expiration date . The date after which the debt is "expired" which means you aren't able to be sued for repayment. However, you are still owed it and debt collectors may continue to pursue payment for the financial obligations that were previously due.
2. Pressure you
Although debt collectors aren't able to make threats or lie to them, they are able to make use of pressure to collect payments. The pressure could include constant calls, letters that are frequently sent, or discussions about filing the possibility of suing for payment of the debt -- as long as they stay within the confines by law.
3. Sue you for payment on an outstanding credit
Debt collectors are often a last-ditch effort. They can result in wage garnishment as well as bank levies or both, since the majority of debtors don't show up to the court, and they lose because of default.
4. Sell your debt
A debt collector can sell debts it isn't successful in collecting and also sell the remaining balance if only partial repayment was received. Therefore, if one debt collector doesn't contact you anymore about a debt, don't be amazed if a new one begins. If you do 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 the amount you are owed
Since debt collectors purchase debts for pennies on the dollar, they can make high profit margins when they collect the original amount owed. This gives them greater flexibility in negotiating a payment with a consumer. You may be able to negotiate a settlement that is 25 percent or even 30% of the debt you initially due. Again, get the agreement in writing so you can prove that the debt was considered fully paid for 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 been featured in The New York Times, USA Today and elsewhere.







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