Debt collection is a necessary part of the financial ecosystem, helping businesses recover unpaid debts while ensuring that consumers are treated fairly. However, debt collectors must operate within strict legal boundaries. If you are dealing with a debt collector, it is important to understand what they can and cannot do.

The Legal Side of Debt Collection

Debt collectors in the United States are regulated by the Fair Debt Collection Practices Act (FDCPA). This law protects consumers from abusive, deceptive, or unfair collection practices. Agencies like Advanced Collection Bureau (ACB) follow these guidelines strictly to ensure ethical and effective debt recovery.

What Debt Collectors Can Do

1. Contact You About a Debt
   Debt collectors have the right to reach out regarding an unpaid debt. They can contact you via phone, mail, email, or even text messages, as long as they follow FDCPA guidelines.
2. Inform You of Your Debt
   Collectors must provide detailed information about the debt, including the original creditor, the amount owed, and your rights as a consumer.
3. Negotiate Payment Plans
   Many collectors, including ACB, work with debtors to create payment plans that fit their financial situation. If you are struggling, it is often best to communicate openly rather than ignore the issue.
4. Report Unpaid Debts to Credit Bureaus
   If a debt remains unpaid for an extended period, it can be reported to credit agencies, which may impact your credit score. ACB, for example, reports delinquent accounts twice a month to ensure accurate credit reporting.
5. Pursue Legal Action
   If a debt remains unpaid and the debtor refuses to communicate, legal action may be an option. However, lawsuits are usually a last resort after multiple attempts at resolution.

What Debt Collectors Cannot Do

1. Harass or Threaten You
   Collectors cannot threaten violence, use obscene language, or repeatedly call to annoy or intimidate you. The FDCPA strictly prohibits harassment of any kind.
2. Call at Inappropriate Times
   Debt collectors are not allowed to contact you before 8 a.m. or after 9 p.m. unless you have given them permission to do so.
3. Lie About the Debt
   A collector cannot misrepresent the amount you owe, claim to be an attorney if they are not, or make false statements about the consequences of non-payment.
4. Contact Your Workplace if Prohibited
   If you inform a debt collector that you are not allowed to receive calls at work, they must stop contacting you there.
5. Disclose Your Debt to Others
   Debt collectors cannot discuss your debt with friends, family, or employers. The only exceptions are spouses and legal representatives.
6. Ignore a Debt Validation Request
   If you request verification of a debt in writing within 30 days of first being contacted, the collector must provide proof that the debt is valid before continuing collection efforts.

What to Do If You Are Contacted by a Debt Collector

If a debt collector reaches out to you, stay calm and informed. Request written confirmation of the debt, review your rights, and communicate openly if you need to dispute or negotiate. If you feel a collector is violating the law, you can report them to the Consumer Financial Protection Bureau (CFPB).

For businesses looking to recover unpaid accounts while ensuring compliance with the law, Advanced Collection Bureau provides professional and ethical debt recovery services. Work with us today to recover outstanding debts efficiently and fairly.

‍