If you’re facing severely delinquent credit card debt that has gone into collections, you might feel overwhelmed and uncertain about your options. After all, debt collection agencies can be persistent in their tactics to try and recover the money that’s owed, and that can be intimidating, especially if the tactics the debt collectors are using become more aggressive over time.
Credit card debt generally goes into collections after prolonged delinquency, which typically occurs when payments are missed for 90 to 180 days. At that point, the creditor determines that the debt is unlikely to be repaid, so it may sell the account to a collection agency or assign it to a debt collector. These third parties are tasked with recovering the debt, and will generally employ various methods to do so.
But while they have the right to contact you about the debt, you also have rights that protect you from unfair treatment and abusive practices — and understanding what they are can help you better navigate these challenges.
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What rights do I have if my credit card debt is in collections?
The Fair Debt Collection Practices Act (FDCPA), which is the primary federal law governing how debt collectors can operate, establishes clear rules about what debt collectors can and cannot do when attempting to recover a debt. Many states also have their own laws that provide further protection. By familiarizing yourself with the rights outlined below, you can take steps to ensure you’re treated fairly and avoid common pitfalls associated with debt collection.
Right to debt verification
You have the right to request validation of the debt within 30 days of first being contacted by a debt collector. The debt collector must send you written verification of the debt, including the amount owed, the name of the original creditor and proof that they have the legal right to collect the debt. Until they provide this verification, they must cease all collection activities.
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Right to stop communication
You can request in writing that a debt collector stop contacting you. While this doesn’t eliminate the debt, the debt collector must honor your request and can only contact you to inform you of specific actions, such as filing a lawsuit. This right gives you control over how and when you interact with collectors while you determine your next steps.
Right to fair treatment
Debt collectors are prohibited from using harassment, threats or deceptive practices. This includes:
- No calls before 8 a.m. or after 9 p.m. without your permission
- No contacting you at work if you’ve told them not to
- No threats of violence or harm
- No use of obscene language
- No false statements about the consequences of non-payment
- No threats of legal action they don’t intend to take
Right to dispute the debt
You maintain the right to dispute the validity of the debt at any time. If you believe the amount is incorrect, the debt isn’t yours or you’ve already paid it, you can file a dispute. The collector must investigate your dispute and provide verification before resuming collection attempts.
Right to fair credit reporting
Debt collectors must accurately report information to credit bureaus. For example, they cannot report false information or fail to note when a debt is disputed. As a result, you have the right to review your credit reports and dispute any inaccurate information related to the collection account.
Right to control third-party information
Debt collectors can only discuss your debt with you, your spouse, your attorney or a co-signer. They cannot reveal your debt to neighbors, family members, employers or other third parties. This protection helps maintain your privacy and prevents embarrassment or professional consequences.
Right to sue for violations
If a debt collector violates your rights under the FDCPA, you have the right to sue them in state or federal court within one year of the violation. You may be entitled to actual damages, statutory damages up to $1,000 and attorney’s fees and costs.
Right to bankruptcy protection
While it’s not always the best option — many other debt relief options are typically less damaging to your finances — you also maintain the right to file for bankruptcy protection. Once filed, an automatic stay goes into effect, requiring all collectors to immediately cease collection activities. This can provide breathing room while you explore debt relief options.
Right to state-level protections
Many states have enacted additional consumer protection laws that supplement federal regulations. These may include stricter communication rules, shorter statute of limitations for debt collection or additional requirements for debt collectors to verify their right to collect.
Right to negotiate
You have the right to negotiate the terms of payment, including requesting a payment plan or settling for less than the full amount owed. While debt collectors aren’t required to accept your proposal, many are willing to work out reasonable arrangements to secure at least partial payment — and may be more likely to do so if you recruit professional help with these negotiations.
The bottom line
Understanding and asserting these rights can significantly impact your experience with debt collectors. However, it’s important to remember that having these rights doesn’t eliminate your responsibility to address valid debts. Rather, these protections ensure you’re treated fairly while working to resolve your financial obligations. If you’re unsure about your rights or need assistance dealing with debt collectors, consider consulting with a debt relief specialist for professional guidance.