If you're hearing from a debt collector, you're probably stressed, confused, or even scared. But the law gives you important protections and knowing your rights is the first step toward taking back control. Simply put, knowledge=power.
The Fair Debt Collection Practices Act (FDCPA) protects you from harassment, deception, and unfair tactics by debt collectors. This federal law applies even if you legitimately owe the debt.
Here’s what you need to know.
What Is the FDCPA and When Does It Apply?
The FDCPA is a federal law that governs how third-party debt collectors can interact with consumers. It’s been on the books since 1977 and is enforced by the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB).
Here’s what that means for you:
It applies only to third-party collectors. These are companies hired by the original creditor (like a credit card company, hospital, or utility provider) to collect a debt. It doesn't cover original creditors collecting their own debts.
➡️ Example: Say you have a credit card through Affinity Plus Credit Union. If Affinity Plus calls you or sends you a letter, the FDCPA doesn’t apply because they’re the original creditor collecting their own debt. However, let’s say Affinity Plus transfers your debt to Messerli & Kramer, a debt collection law firm. Messerli must comply with the FDCPA because they are a third party collecting a debt for someone else.
➡️ Tip: Some states, including Wisconsin, have state debt collection laws that do apply to original creditors.
It only covers personal, family, or household debts. That includes credit cards, loans, medical bills, car loans, mortgages, student loans, etc. It doesn’t cover business debts.
You’re still protected even if you owe the money. The FDCPA isn’t just for people being wrongly pursued. Even if the debt is legit, collectors still have to treat you fairly and follow the law.
What Debt Collectors Can Do
Debt collectors do have legal ways to try to collect money. These include:
Contact You About a Debt. Collectors can call, write, or email to ask for payment.
Report to Credit Bureaus. Debt collectors can report unpaid debts to credit reporting agencies, but the information must be accurate.
Sue You in Court. They can start a lawsuit to collect a debt, as long as it's within the statute of limitations.
Garnish Your Bank Account or Wages (If They Have a Judgment)
If a debt collector sues you and wins in court, they can garnish your wages or bank account. That means money could be taken directly from your paycheck or checking account to satisfy the debt.➡️ Important: They cannot garnish anything unless they first get a court judgment against you. If a collector is threatening garnishment without a judgment, that may be illegal.
What Debt Collectors Can’t Do
The FDCPA bans false, misleading, harassing, abusive, and unfair collection practices such as:
Harass or Threaten You. A debt collector can't yell, curse, threaten violence, or repeatedly call to annoy you.
Call at Inappropriate Times. They can’t contact you before 8 AM or after 9 PM in your time zone.
Lie or Mislead You. The collector can’t pretend to be a lawyer or government agent, lie about the amount you owe, or say you’ll be arrested if you don’t pay.
Talk About Your Debt with Others. A debt collector can’t tell your friends, boss, neighbors, or relatives about your debt (other than your spouse or attorney).
Keep Contacting You After You Tell Them to Stop. If you send a letter telling them to stop contacting you, they must stop—except to confirm they won’t contact you again or to notify you of legal action.
Add Unauthorized Fees. Collectors can’t tack on extra interest, fees, or charges unless your contract or state law allows it.
What to Do Next
If you're dealing with a debt collector right now, here are three practical steps to take:
Write Everything Down. Keep a record of all phone calls, voicemails, letters, emails, and texts. Keep screenshots of all inbound and outbound calls and texts and keep all voicemails, letters, emails, and court papers.
Don’t Assume They’re Right. Just because a debt collector says you owe money doesn’t make it true. Don’t agree to pay until you understand who’s collecting and what the debt is.
Talk to a Consumer Protection Lawyer. If you're being harassed or threatened, or just unsure what your rights are, a quick consultation can help you figure out your options. Most consumer lawyers offer free initial consults.
Serving Minnesota and Western Wisconsin
Think a debt collector has stepped over the line? Book a free consult with FDCPA attorney Todd Murray today.
Since 2009, Todd has helped people across Minnesota and Western Wisconsin sue debt collectors who break the law. He’s recovered millions of dollars for clients and held collectors liable for illegal conduct. Originally from Wisconsin, and now based in the Twin Cities, clients describe Todd as professional, approachable, and easy to work with.