Collection of consumer debt is regulated federally and by state law, with private rights of action and statutory damages.
Who is covered. Third-party collectors and debt buyers under the federal statute; creditors collecting their own debts are covered by state statutes in many jurisdictions and by unfair practices standards generally.
Communication limits. Contact at inconvenient times or places; contact at work where prohibited; contact after written notice to cease; and contact with the consumer directly once represented by counsel. Rules now address electronic communications, including frequency presumptions for telephone calls and required opt-out mechanisms for email and text.
Third parties. Communications with others are limited to location information, without disclosing the debt.
Validation. A written notice of the debt with prescribed content within a short period of the initial communication, and cessation of collection until validation is provided if disputed within the stated period.
Prohibited conduct. Misrepresenting the amount or legal status of the debt, threatening action not intended or not lawfully available, and false representations about consequences.
Time-barred debt. Suing on debt beyond the limitation period is prohibited, and disclosure obligations attach to collecting it.
Litigation practice. Filing suit requires documentation establishing the chain of assignment and the balance, and defective affidavits have produced substantial enforcement exposure.