Under the Fair Debt Collection Practices Act (FDCPA),  debt collectors cannot conduct activity which is deemed abusive, unfair, or deceptive practices to collect outstanding amounts owed by debtors.  The FDCPA governs debt collectors who regularly collect debts owed to others and it covers personal, family, and household debts, including money owed on a personal credit card account, an auto loan, a medical bill, and a mortgage.

Certain actions are forbidden by the debt collectors including contacting the debtor at inconvenient times or places, such as early in the morning or after nine at night, unless agreed to by the debtor, and may not contact the debtor at work if they are told (orally or in writing) that it is not permitted to be contacted at work.  Other actions that may not be taken by collectors are use threats of violence, repeatedly use the phone to annoy someone, falsely claim that they are attorneys, misrepresent the amount owed, or take or threaten to take property unless it can be done legally. 

Every collector must send a written “validation notice” disclosing how much money is owed within five days after first contact with the debtor. This notice must also include the name of the creditor, and how to proceed if the debtor disputes owing the amount.  In order to stop a collector from contacting the debtor, certain actions should be taken.  The debtor can request the collector to stop making contact by sending a letter by certified mail and return receipt requested.  A copy of the letter should be retained in the debtor's records. Upon receipt of the letter, the collector can only contact such person again to inform the debtor that there will be no further contact or to let the debtor know that they or the creditor intend to take a specific action, like filing a lawsuit. Although this may stop the creditor contacting the debtor, it does not discharge the debt. 

If the debtor sends the debt collector a letter stating that no money is owed, or asking for verification of the debt, that collector must stop contacting the person. Such letter has to be sent  within 30 days after receipt of the validation notice. But a collector can commence contact again if it sends written verification of the debt, like a copy of a bill for the amount owed.

If the debtor does not pay a debt, then a creditor or its debt collector generally can sue to collect. If successful, the court will enter a judgment against the debtor. The judgment would then determine the amount of money owed and allows the creditor or collector to get a garnishment order, allowing a third party, like a bank, to turn over funds from such account to pay the judgment debt.  A wage garnishment may also occur which happens when an employer withholds part of the compensation to pay the debts. Wages usually can only be garnished as the result of a court order.  Certain federal benefits are exempt from garnishment, including Social Security Benefits, Supplemental Security Income Benefits and Veterans’ Benefits.

Debt collectors can be sued in a state or federal court within one year from the date the FDCPA  was violated. If successful, the judge can require the collector to pay for any damages proven as suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay up to $1,000, even if actual damages cannot be proved. The attorney's fees of the debtor can also be reimbursed along with court costs in a successful suit against the collection agency. However, even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away due to such action.