Debt Collector

Debt collector summary:

• Debt collectors are individuals or companies whose primary business is to collect unpaid debts that were originally owed to someone else.

• The Fair Debt Collection Practices Act lays out a set of rules debt collectors have to follow.

• Original creditors aren’t subject to the same federal laws, but they may be covered by state laws.

Debt collector definition and meaning

A debt collector's business practice is to collect unpaid debts. Under the Fair Debt Collection Practices Act (FDCPA), debt collectors must follow strict rules of contact.  Debt collectors are not the same as original creditors. The person or business that originally loaned the money doesn’t have to follow the same rules.

Key concept:

A debt collector attempts to collect unpaid debts from people who originally borrowed from someone else. The FDCPA limits what they can do, and when and how they can do it. 

Debt collector breakdown

A debt collector regularly collects debts as part of their job. If they're contacting you, it's because they're trying to reach you or someone you know. The Fair Debt Collection Practices Act (FDCPA) protects you when someone tries to collect a debt that didn’t originally belong to them. In other words, the debt collector giving you a call must follow FDCPA rules. 

Here are examples of who’s covered by the FDCPA:

• Debt buyers. Companies that purchase outstanding debts from other companies, typically at a steep discount. Once they own that debt, they have the right to collect on it. Debt buyers are subject to the FDCPA.

• Lawyers. Generally, lawyers and law firms working to collect debts are considered debt collectors. They must follow FDCPA rules when they regularly perform debt collection for their clients. 

• Original creditor pretending to be someone else. When an original creditor uses another name to imply that they're working for a third-party collection agency, FDCPA rules apply. Original creditors who never claim to be anyone other than who they are aren’t covered by the same regulations (but they might be covered by state laws).

There are several reasons you may receive a notification or call from a debt collector. They include:

• They believe you're past due or have defaulted on a debt.

• They're trying to locate someone you know.

• They've bought a debt and are now collecting it for themselves.

Read more: Debt buyers vs. debt collectors: When is it legal to pursue you for debt?

Debt collector: dos and don’ts

Debt collectors can’t use abusive, unfair, or deceptive practices to collect money from you. Here's a closer look at what is (and isn't) allowed under the FDCPA:

• Collectors can’t contact you before 8 a.m. or after 9 p.m.

• Debt collectors can't attempt to contact you in a place they know or should know is inconvenient for you.

• If you're not allowed to receive personal calls at work, a debt collector can't call you there. 

• If a debt collector calls when it's inconvenient for you to speak, you can tell them that and terminate the call.

• Debt collectors can't use social media to post about debt they say you owe.

• If you're contacted via email, telephone, or other electronic medium, you must be offered a simple way to opt out.

• Debt collectors can't harass you through any form of contact.

• If a debt collector learns that an attorney is representing you, they must stop contact with you and contact your attorney instead.