Debt Collector Rules
Written in plain language for general understanding. This is educational content, not legal advice. Based on federal statutes and official sources.
What is this right?
The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits what debt collectors can do when trying to collect money from you. It covers third-party collectors — companies that buy or collect debts on behalf of someone else — not the original creditor.
Under the FDCPA, debt collectors cannot harass you, lie to you, or use unfair tactics. They cannot call you before 8 a.m. or after 9 p.m., threaten violence, use profane language, or tell other people about your debt. You also have the right to tell a collector to stop contacting you entirely by sending a written request.
When does it apply?
This right applies when:
- A third-party debt collector contacts you about a debt — by phone, mail, email, or text
- Someone is trying to collect a personal, family, or household debt (credit cards, medical bills, student loans, auto loans)
- The collector is NOT the original company you owed money to (the FDCPA mainly covers third-party collectors)
Common misconceptions:
- "Debt collectors can call me whenever they want" — No. They can only call between 8 a.m. and 9 p.m. in your local time zone. They also cannot call you at work if you tell them your employer does not allow it.
- "I have to talk to debt collectors" — No. You can send a written letter telling them to stop contacting you. After they receive it, they can only contact you to confirm they will stop or to notify you of a specific legal action.
- "Old debts never go away" — Every state has a statute of limitations on debt. After that period, a collector can still ask you to pay, but they cannot sue you for it. Paying or acknowledging old debt can restart the clock in some states.
What should you do?
Step 1: Ask the collector for a "debt validation letter." Under the FDCPA (15 U.S.C. § 1692g), the collector must send you written notice within five days of first contact that includes the amount of the debt, the name of the creditor, and your right to dispute it.
Step 2: If you do not believe you owe the debt, send a written dispute within 30 days of receiving the validation notice. Send it by certified mail with return receipt requested. The collector must stop collection efforts until they verify the debt.
Step 3: Keep records. Save every letter, write down the date and time of every call, and note what the collector said. This documentation is critical if you need to file a complaint or lawsuit.
Step 4: If you want the calls to stop, send a cease-and-desist letter by certified mail. Once they receive it, they must stop contacting you (with limited exceptions for legal notices).
Step 5: File a complaint with the CFPB at consumerfinance.gov/complaint or call (855) 411-2372. You can also file with your state attorney general.
What should you NOT do?
Don't ignore debt collectors entirely. While you have the right to stop contact, ignoring a legitimate debt could lead to a lawsuit, wage garnishment, or damage to your credit score. Understand what you owe before deciding your next step.
Don't give personal financial information over the phone. Scammers often pose as debt collectors. Never give your bank account number, Social Security number, or credit card number to someone who calls you about a debt.
Don't make a payment on very old debt without understanding the consequences. In many states, making even a small payment on a time-barred debt can restart the statute of limitations, giving the collector the right to sue you again.
Don't agree to a payment plan you cannot afford. Collectors may pressure you into committing to payments that stretch your budget. You are not required to agree to their terms — you can negotiate or seek help from a nonprofit credit counselor.
How North Carolina differs from federal law
North Carolina regulates debt collection under the NC Debt Collection Act in addition to the federal FDCPA:
- The NC Debt Collection Act (N.C. Gen. Stat. § 75-50 et seq.) applies to third-party debt collectors
- Prohibited practices include: threats of violence, obscene language, publishing debtor lists, misrepresenting the amount owed, and contacting debtors at unreasonable hours
- Unreasonable hours are defined as before 8:00 AM or after 9:00 PM
- NC also prohibits unfair debt collection practices under the NC Unfair and Deceptive Trade Practices Act (N.C. Gen. Stat. § 75-1.1)
- NC's statute of limitations on debt is 3 years for most consumer debts (open accounts and oral contracts)
- Collectors cannot threaten to garnish wages for debts that are time-barred
Additional Steps in North Carolina
File complaints with the NC Attorney General's Consumer Protection Division at (919) 716-6000 or ncdoj.gov. You can also file with the CFPB at consumerfinance.gov and the FTC. NC allows private lawsuits under the state Unfair and Deceptive Trade Practices Act with potential treble damages.
Relevant Law: NC Debt Collection Act, N.C. Gen. Stat. § 75-50 et seq. NC Unfair and Deceptive Trade Practices Act, N.C. Gen. Stat. § 75-1.1. Federal FDCPA, 15 U.S.C. § 1692.
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