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Having debt – such as credit card debt or monthly car payments – is part of many peoples’ lives and, sometimes, people get behind on their payments. The law limits what a company trying to collect consumer debts can do. The companies to which the debts are owed are commonly referred to as creditors, and the companies trying to collect on personal debts owed by consumers are referred to as debt collectors.

In general, the law prohibits unfair, misleading, harassing or abusive conduct by debt collectors. For example, a debt collect cannot call you before 8:00 a.m. or after 9:00 p.m. A debt collector cannot lie to you or threaten to file criminal charges against you over a debt. Nor can a company use obscene or abusive language or make false or misleading statements to  you. There are also limitations on when a debt collector can contact third parties, such as friends and co-workers, about another person’s debt and what those third parties can and cannot be told. In short, consumers have rights when it comes to how their debts are collected.

  
The main laws that govern debt collection practices are the Fair Debt Collection Practices Act (“FDCPA”), which is the federal law, and California’s version of the FDCPA, the Rosenthal Fair Debt Collection Practices Act. While the federal and California debt collection laws are similar, there are differences, such as to whom the laws apply. Notably, the FDCPA does not apply to creditors collecting consumer debt that they originate (i.e., a credit card company trying to collect money owed on a credit card that it issued to a consumer). California’s debt collection laws, however, do apply to such creditors. Both the federal and state debt collection laws apply to third parties, such as collection agencies or repossession companies, that are trying to collect on behalf of creditors.  

If you have questions about your experience with a debt collector, please contact the Gratch Law Group for a free consultation.

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This overview does not constitute legal advice. It is intended solely for general information purposes and provides only a  broad sense of possible legal issues. Any legal rights and remedies you may have will depend on your specific experience(s) and facts.

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