Debt Collection FAQ

To help our readers understand the basics of this practice, we have created this article to address some debt collection FAQ.

Debt Collection FAQ

Below, you’ll find a debt collection FAQ to guide you through this practice. Don’t hesitate to contact us if you have any more doubts!

Q1. What is a debt collector?

It is any person who collects arrears owed by another person or entity. A collector can be a lawyer, an attorney, or a non-lawyer. A non-lawyer can be whoever collects arrears unrelated to legal practice; this includes accountants, real estate agents, and medical providers. 

In most cases, “debt collector” refers to the original creditor or a third party they’ve hired to collect on the arrears. Exceptions include when an agent from a financial institution collects on said institution’s behalf and is therefore considered a collector. In addition, the term “debt collector” also refers to a person who attempts to collect any arrears owed by the borrower. In many cases, the collector is a third party hired by the original creditor to collect on the arrearage. This is usually because the original creditor has sold or assigned its rights in the case and can no longer directly collect on its arrears.

Q2. What can collectors collect?

The types of arrears that a collector can collect include:

• Bank overdraft fees
• Credit card arrearages
• Installment loans like those from a car dealer or furniture store
• Medical bills
• Telephone accounts, including cell phone bills

It is illegal for a collector to collect on any tax arrear in most cases.

Q3. What are some examples of arrears that a collector cannot collect?

The types of arrears that a collector cannot collect include:

• Money owed to the debtor (i.e., money owed to the borrower personally, such as money owed to someone who has died or money owed to a charity)
• Debt from an installment loan (i.e., owing money on an installments-based loan)
• Money owing on a federal or state tax refund due within a certain period
• Debts for services that are not contractually obligated to be paid (e.g., money owed for services that a corporation is not contractually obligated to pay).

Q4. How often can a collector contact a borrower?

A collector may contact the borrower as often as necessary to collect the arrearage. However, state laws regulate arrears collection, and some states require that collection calls be made only on days when the borrower is available to receive them. If a collector contacts you or receives any written communication from a collector (e.g., via mail or email), you should know your rights under federal and state laws.

Q5. How can a borrower stop a collector from contacting them?

A debtor can request that a collector stop calling them and instead have all future contacts be in writing only (e.g., via mail). However, this request does not keep the collector from attempting to collect the arrearage in other ways (e.g., filing a lawsuit against you or reporting your delinquent arrears to credit bureaus).

Q6. When can a creditor hire someone to collect on the arrears?

A creditor may hire a collector for one of two reasons: to recover their own money or collect on behalf of another person or entity who has the legal right to collect the arrearage. The creditor may also hire a third party to collect on their behalf if it is impractical for the creditor to do so directly. For example, when certain arrears are subject to a statute of limitations limiting how long creditors can sue, they may need assistance from an attorney or collection agency before recovering the money owed them. Similarly, if a creditor cannot locate the borrower or is otherwise unable to collect, they may hire a collection agency.

Q7. Can an arrearage collector call me at home?

The collector can call you at home but generally cannot make other attempts to contact you, such as by leaving messages. If you receive calls from someone you do not have an existing relationship with, the person likely calling is not collecting on your arrear. It is advisable to inform that person that they cannot call you again and ask them to leave a message if they wish to speak with you.

Q8. Can an arrearage collector call my employer?

A collector can call your employer but cannot ask you to contact them about anything related to the money due. If you receive calls from someone you do not have an existing relationship with, the person likely calling is not collecting on your arrear. It is advisable to inform that person that they cannot call your employer again and ask them to leave a message if they wish to speak with you.

Q9. Can an arrearage collector contact me online?

A collector can contact you online via email but cannot send or demand money from you via email. If you receive calls from someone you do not have an existing relationship with, the person likely calling is not collecting on your arrearage. It is advisable to inform that person that they cannot contact you online again and ask them to leave a message if they wish to speak with you.

Q10. Can an arrearage collector contact me by text message?

A collector can contact you by text message but cannot send or demand money from you via text message. If you receive calls from someone you do not have an existing relationship with, the person likely calling is not collecting on your arrear. It is advisable to inform that person that they cannot contact you via text message again and ask them to leave a message if they wish to speak with you.

Q11. Can an arrearage collector contact me by email?

A collector can contact you by email but cannot send or demand money from you via email. If you receive calls from someone you do not have an existing relationship with, the person likely calling is not collecting on your arrearage. It is advisable to inform that person that they cannot contact you via email again and ask them to leave a message if they wish to speak with you.

Q12. What are the laws regarding debt collection?

The Fair arrearage Collection Practices Act (FDCPA) regulates how people who collect arrears can use specific methods of collecting arrears owed to them. The FDCPA regulates various issues, such as when you can call someone, tell them that they owe money, and how you must treat them after they pay you.

Q13. Is it legal for an arrearage collector to contact me at work if I’ve told them not to?

A collector may continue to contact you at work if they can do so, even after telling them not to. However, if your employer prohibits such contact and notifies the collector of this fact, they must end their attempt to collect through work.

Q14. How can I stop a collector from contacting my employer?

If you do not want a collector to contact your employer, then you should:

• inform the creditor (original creditor or collection agency) in writing that your employer forbids such communication and provide the name and address of both your employer and someone at your employer with whom the creditor may speak to verify this information.

Q15. If a collector contacts my employer, what can I do?

Suppose your employer notifies you that a collector has contacted them about your arrearages. In that case, likely, the matter does not involve a violation of state or federal law. However, if you do not want your employer to be contacted again by the collector, then your best option is to prepare a letter that you can give to them stating this. If you are unsure what information you should include in the letter or how it should be presented, contact an attorney specializing in creditor-debtor law for assistance.

Debt Collection FAQ: In Conclusion

In conclusion, there are many questions people may have about collection. This debt collection FAQ should help you understand the laws and know when to get legal help. At Consumer Protection Group, our specialty is educating consumers on how debt works and how to do well when facing it. Contact us to help you work towards financial security!