"Can He Really Say That?"

It's a question I've asked before after talking to a debt collector over the phone. At the time I didn't realize that debt collectors must abide by certain laws that dictate what they can and cannot do. For example, debt collectors can't harrass you, imply that you've committed a crime, or call you at work after being warned that your boss doesn't approve.

The Fair Debt Collection Practices Act, or FDCPA, outlines how third-party* debt collectors must act when conducting business with you. If the debt collector violates your rights under the FDCPA, you have one year from the date of the violation to file a lawsuit against the debt collector. You could receive up to $1,000 in addition to actual damages and attorney fees.

*The law only applies to collection agencies hired by your original creditor, not the original creditor itself.