CONSUMER LAWS

FDCPA — Fair Debt Collection Practices Act

Designed to prevent collection agencies from harassing consumers. Under the FDCPA, debt collectors cannot:

• Threaten you with violence or harm
• Call you at unreasonable hours (before 8am or after 9pm)
• Contact you at work if you've told them not to
• Use obscene or profane language
• Falsely claim to be attorneys or government representatives
• Discuss your debt with third parties (family, employer)

Enforcement: File complaints with the FTC. You can also sue in federal court for $500-$1,000 per violation plus actual damages and attorney fees.

→ See our FDCPA guide and debt collection recipes

Debt Validation Rule (FDCPA Section 1692g)

You have the right to request validation of any debt a collection agency claims you owe. If you send a validation letter within 30 days of their first contact, the agency must:

• Cease all collection activities until they validate
• Provide proof that the debt is yours
• Provide the name and address of the original creditor
• Provide documentation of their authority to collect

Many collection agencies cannot produce proper validation, especially for debts that have been sold and resold. If they can't validate, they must remove the tradeline.

→ Use our validation letter template

Statute of Limitations (SOL)

The SOL is the time limit within which a creditor or collection agency can sue you for non-payment of a debt. If they sue after this period, you can use the expired SOL as a defense in court.

Important: Making a payment or even acknowledging the debt in writing can restart the SOL clock. Always check your state's specific SOL before responding to a collection attempt.

FTC Debt Relief Law (2010)

Introduced in 2010, this rule protects consumers from predatory debt relief companies. Under this law:

• No debt relief agency may charge upfront fees before settling or reducing your debt
• Fees must be tied to actual results — not promises
• Companies must disclose all costs and timeframes before enrollment
• Companies cannot misrepresent their success rates

If a debt relief company asks for money upfront, they are violating federal law. Report them to the FTC.

Billing Error Claims (15 USC 1666 — FCBA)

The Fair Credit Billing Act gives you the right to challenge billing errors on your credit card statements. If you claim a billing error in writing within 60 days:

• The creditor must acknowledge your dispute within 30 days
• The creditor must resolve the dispute within two billing cycles
• The creditor cannot report the disputed amount as delinquent during investigation
• The creditor cannot collect the disputed amount during investigation

Strategic use: If a collector or creditor is pursuing you, claiming a billing error under 15 USC 1666 early in the process can stop them temporarily while you work on a permanent remedy. Do this before they take you to court.

Also: if an attorney is contacting you about a debt, you can claim they are making false and misleading statements under the FDCPA, which prohibits any false representations.