1. DEBT RELIEF

Ten Facts About Debt Collector Calls You Need to Know

Five Facts About Debt Collector Calls You Need to Know
BY John Russo
Dec 16, 2018
 - Updated 
Nov 4, 2024
Key Takeaways:
  • Debt collection calls can come from creditors and collection agencies.
  • Make the collector validate the account before communicating with them about the debt.
  • Many bill collectors will settle for less than the amount owed.

Debt can be stressful enough on its own. But if you’ve fallen behind and creditors or debt collection agencies are calling you at home or work, your stress levels could be at an all-time high. You might feel confused, angry, or even guilty about these debt collector calls. But have you ever considered that your creditors might be using unfair debt collection practices?

Most people don’t realize that there are limits to what a debt collector can do and say when they’re trying to collect a debt. That’s why it’s so important to know the facts about unfair debt collection practices, so that you can protect yourself against them. Here are five facts about debt collector calls you should know.

1. Not all debt collector calls are legitimate

When you get debt collection calls, ask the debt collector or creditor calling you to identify themselves and give you the specifics on the debt they are trying to collect. Knowing the name of the debt collector calling you, the debt collection company’s name, and debt amount can help you determine if the debt collection call is legitimate.

If a debt collector calls the wrong person or misrepresents the amount you owe, they could be using unfair debt collection practices. If they’ve called the wrong person, let them know you’re not the person they are trying to reach. To make sure they don’t call you again, you can send a cease and desist letter requesting that they stop contacting you.

2. Creditors and a debt collection agencies are not the same

If you don’t recognize the name of the debt collection company contacting you, it doesn’t necessarily mean that the debt collector is calling the wrong person. Once an account has been delinquent for a certain amount of time, most creditors will either send your debt to a debt collector or sell it to them for a fraction of what you owe. This process is called a charge off.

Once your debt has been charged off, debt collectors try to make a profit from your debt by getting you to pay the same amount as before. To do this, they may use more aggressive debt collection tactics on the phone to pressure you into paying. Even though debt collector calls are not illegal, there are certain things they can’t do when they call (explained below).

What to Expect When a Debt Collector Calls.

3. Debt collector calls and unfair collection tactics

Under the Fair Debt Collections Practices Act (FDCPA), it’s illegal for debt collectors to:

  • Contact you at unreasonable hours. Debt collectors can call, text, or send you letters—but debt collectors cannot contact you at unreasonable times, like before 8:00 am or after 9:00 pm, unless you agree to it.

  • Harass or threaten you. Debt collectors cannot threaten to harm you, use obscene or profane language, or repeatedly use the phone to annoy you.

  • Make false statements or misrepresent themselves in any way. It’s illegal for a debt collector to make false claims about you or themselves when they are trying to collect a debt (e.g., say they are a lawyer or government agent, claim that you committed a crime, or misrepresent the amount you owe).

  • Threaten to seize, garnish, or sell your property or wages. A debt collector cannot threaten to seize or garnish your wages unless they get a court order to garnish your wages or intend to take you to court in order to do so.

4. Debt collectors who don’t follow the law could be held responsible

If you think debt collector calls or other such actions may be violating the FDCPA, contact an attorney to see if you have any legal recourse. You have rights as a debtor, and there are legal consequences for creditors and collection agencies who violate those rights. You may contact the Federal Trade Commission or the Consumer Financial Protection Bureau, or your state’s Attorney General, as your state laws may provide additional protections.

5. Many creditors will settle your debt

Debt collection calls are stressful—even if the debt collector is just doing their job. And the truth is that debt collection calls most often won’t stop until you pay your debt collector.

But did you know that there are ways to get creditors to settle for less than you owe? If you simply cannot afford to pay your debt, you may be able to negotiate with creditors to lower your interest rate, change the terms of your payments, or even settle the debt for less.

6. Debt collectors can’t contact you at work if you ask them to stop

The Fair Debt Collection Practices Act (FDCPA) is a federal law that creates guardrails for debt collectors. One of the rules is that they can’t contact you at work if you ask them not to because you’re not allowed to receive personal calls at work, or because it’s inconvenient for you to receive their call at work. 

If you ignore the debt collector’s calls or avoid calling back, they can keep trying to get a hold of you at that number. So it’s up to you to speak up and let them know that they are calling your place of employment and you want them to stop. Then, if they continue, you can submit a complaint to your state attorney general office or the Consumer Financial Protection Bureau

Furthermore, telling them not to contact you at all is one way to stop debt collector calls. There’s a risk in doing this, however. If they respect the law and stop contacting you, the door may be closed to negotiating an agreement. The next contact may be a court summons, because the debt collector has no other choice.

7. Debt collectors must identify themselves

The FDCPA makes it illegal for debt collectors to lie or conceal their identity. If they fail to identify themselves, it’s considered harassment. 

Don’t give any personal information to someone who calls and claims you owe them money. First, take the time to confirm that the caller is legit.

8. You have 30 days to request debt validation

The first thing you should do when contacted about a debt is validate it. The law gives you 30 days from the debt collector’s first contact to ask for proof that the debt is yours and that the amount is correct. 

Ideally, the debt collector will send you a copy of the original bill or contract. They have to give you:

  • Their name and address

  • The name of the original creditor 

  • How much you owe, broken down so that you can see fees, interest, payments, and credits

  • What you can do if you don’t think the debt is yours

  • An explanation of your rights

You have the right to stop credit card collection calls for any debts that can’t be validated.

9. You can record calls in some states

In 35 states and the District of Columbia, you can record your own phone calls if you want to, even if you don’t have the other person’s permission. Those are called “one-party” states, and if you live in one, consider recording your calls so that you have proof of what was said.

In the following 15 states, you need the permission of all parties on the call if you want to record. That doesn’t mean you can’t record. It just means you need to ask for consent before you do.

  • California

  • Connecticut

  • Delaware

  • Florida

  • Illinois

  • Maryland

  • Massachusetts

  • Michigan

  • Montana

  • Nevada

  • New Hampshire

  • Oregon

  • Pennsylvania

  • Vermont

  • Washington

Debt collectors can’t try to bully you by being dishonest. It’s against the law for them to threaten to sue you or take any legal action if those actions aren’t truly imminent. The person calling you can’t pretend to be an attorney, a government employee, or a law enforcement officer. 

If they imply that a lawsuit or arrest is what’s coming next and they haven’t already started the ball rolling on that action, they’re breaking the law. You can report them to your state’s attorney general’s office, the CFPB, and the Federal Trade Commission.

How to get a debt collector to settle for less

There are ways to work with your creditors to see if they will settle your debt amount for less than you originally owed. Here are some steps you can take:

  1. Call your debt collector or creditor and explain your situation to them.

  2. Tell them that you cannot pay the full amount on your debt.

  3. Negotiate new terms with your debt collector based on how much you can pay.

  4. Get your debt collector to sign a document accepting the new terms.

  5. Pay the new amount on time each month.

If you’re able to negotiate with your debt collector or original creditor and pay them on time according to your agreement, debt collector calls should stop. However, getting a debt collector to agree to new terms can be difficult. Another option is to get professional help from a debt settlement company.

When using a third party debt settlement company, you’ll stop paying your creditors and instead place this money into a separate bank account that you control. Once you have enough money in this account, the company will contact your creditors to work out a settlement agreement. Once you’ve paid the reduced balance, it’s recorded as paid in full. The company gets its payment after the settlement is reached.

Keep in mind that you may continue to receive calls from debt collection companies after you stop making your payments. However, this is temporary as long as you fulfill the terms of the settlement agreement.

Stop debt collector calls and take control of your finances

If you’re struggling with debt collector calls or worried about making monthly payments, it might be time to take control of your situation. Freedom Debt Relief will help you understand your options for dealing with your debt, including our debt relief options. Our Certified Debt Consultants can help you find the right solution for your financial future. Find out if you qualify today.

Debt relief by the numbers

We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during September 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.

Credit card balances by age group for those seeking debt relief

How do credit card balances vary across different age groups? In September 2024, people seeking debt relief showed the following trends in their open credit card tradelines and average credit card balances:

  • Ages 18-25: Average balance of $9,117 with a monthly payment of $254

  • Ages 26-35: Average balance of $12,438 with a monthly payment of $340

  • Ages 36-50: Average balance of $15,436 with a monthly payment of $431

  • Ages 51-65: Average balance of $16,159 with a monthly payment of $467

  • Ages 65+: Average balance of $16,546 with a monthly payment of $442

These figures show that credit card debt can affect anyone, regardless of age. Managing credit card debt can be challenging, whether you're just starting out or nearing retirement.

Collection accounts balances – average debt by selected states.

Collection debt is one example of consumers struggling to pay their bills. According to 2023, data from the Urban Institute, 26% of people had a debt in collection.

In September 2024, 30% of debt relief seekers had a collection balance. The average amount of open collection account debt was $3,203.

Here is a quick look at the top five states by average collection debt balance.

State% with collection balanceAvg. collection balance
District of Columbia23$4,899
Montana24$4,481
Kansas32$4,468
Nevada32$4,328
Idaho27$4,305

The statistics are based on all debt relief seekers with a collection account balance over $0.

If you’re facing similar challenges, remember you’re not alone. Seeking help is a good first step to managing your debt.

Support for a Brighter Future

No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.

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