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Debt Collection Laws

Updated: Sep 6, 2023

The Ultimate Guide to Debt Collection Laws: What You Need to Know

Debt collection: two words that can evoke a myriad of emotions. Whether you're a business trying to balance your books or an individual striving to manage your finances, understanding debt collection laws is crucial. This guide aims to shed light on these regulations, ensuring both creditors and debtors are well-informed.

Debt Collection Laws

The History of Debt Collection Law

Debt collection has been around for centuries, but the laws governing it have evolved over time. In the early days, debt collectors often used aggressive and abusive tactics to collect debts. As a result, government agencies began to regulate debt collection.

In the United States, the first federal law governing debt collection was the Fair Debt Collection Practices Act (FDCPA), which was passed in 1977. The FDCPA prohibits debt collectors from using abusive, unfair, or deceptive practices to collect debts. It also requires debt collectors to identify themselves and to provide debtors with certain information about the debt, such as the name of the creditor and the amount of the debt.

The FDCPA has been amended several times since it was passed, and it has been interpreted by the courts in a number of cases. As a result, it is a complex law with a lot of nuances. However, it has been very effective in protecting debtors from abusive debt collection practices.

In addition to the FDCPA, there are also a number of state laws that govern debt collection. These laws can vary from state to state, so it is important to be familiar with the laws in your own state.

The Fair Debt Collection Practices Act (FDCPA) Interpreted by Regulation F

Debt collection agencies are bound by the FDCPA's guidelines, which include the following provisions to ensure consumers are treated fairly:

  • Requirement to validate a disputed debt.

  • Prohibition against harassment or abusive practices.

  • Prohibition against providing false or misleading information.

  • Prohibition against using unfair or unconscionable methods to collect a debt.

  • Prohibition against calling before 8:00 a.m. or after 9:00 p.m.

  • Prohibition against calling you at work if you've informed them not to.

  • Prohibition against calling a number you've specified as not yours.

  • Prohibition against falsely representing themselves as government officials.

  • Prohibition against claiming you will be arrested if the debt isn't paid.

  • Prohibition against calling more than seven times within a 7-day period.

  • Prohibition against calling you before 8:00 a.m. or after 9:00 p.m.

  • Prohibition against Threatening to sue you or garnish your wages if they cannot legally do so

The FDCPA covers the collection of:

Mortgages, Credit cards, medical debts, and other debts mainly for personal, family, or household purposes. The FDCPA does not cover business debts. It also does not generally cover collection by the original creditor to whom you first became indebted.

The Role of Regulation F.

The Consumer Financial Protection Bureau (CFPB) introduced Regulation F on October 30, 2020, and later on December 18, 2020. This regulation interprets and provides clarity on certain provisions of the FDCPA, ensuring a clearer understanding of the law's implications.

The Fair Credit Reporting Act is the primary federal law that governs the collection and reporting of credit information about consumers. Its rules cover how a consumer's credit information is obtained, how long it is kept, and how it is shared with others—including consumers themselves.

Key Aspects of FCRA:

  • Consumer Awareness & Access: The FCRA ensures that consumers have the right to be informed about the information contained in their credit reports. This transparency allows consumers to have a clear understanding of their financial standing and any factors affecting their creditworthiness.

  • Right to Dispute and Correction: If a consumer finds inaccuracies or discrepancies in their credit report, the FCRA empowers them to dispute such information. Credit reporting agencies are then mandated to investigate and correct any errors, ensuring the integrity of the reported data.

  • Selective Accessibility: Not everyone can access a consumer's credit report. The FCRA sets strict parameters, ensuring that only authorized users with a valid reason can view this sensitive information.


The Telephone Consumer Protection Act (TCPA) restricts phone solicitors and regulates the use of automated equipment. This law applies to debt collectors as well as telemarketers. A common issue with the TCPA and debt collection is the act of calling an individual's cell phone. Debt collectors are required to get written or oral consent to call a personal cell phone.

For debt collection companies dealing with medical bill collection. The Health Insurance Portability and Accountability Act (HIPAA) sets the standard for sensitive patient data protection.

Disclaimer: The information provided herein is for general informational purposes only and is not intended to serve as legal advice. Consult with a qualified attorney for any specific legal concerns.


Disclaimer: Any and all information is not intended to be, nor is it, legal advice. Please consult your attorney for information concerning allowable rates of interest.

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