Repeated harassing calls from debt collectors are illegal.
The laws regarding collection agencies vary from state to state, and state laws can even vary from the federal Fair Debt Collection Practices Act. The Federal Trade Commission (FTC) and your state Attorney General's office can help determine your rights in accord with your state law. However there are some basic rules that apply in most cases.
Place and Time
Debt collectors cannot call before 8am or after 9pm unless you specifically agree to it. They also have to refrain from calling you at work if they're told either verbally or in writing that you cannot receive calls there.
Ending Contact
Debt collectors must cease contact if they receive a letter saying you do not wish to be contacted. They are then only allowed to contact you to tell you there will be no more contact or to let you know they intend to take legal action. The FTC recommends sending the letter to the collector by certified mail, "return receipt" and keeping a copy for your records.
Third Parties
Debt collectors are required to contact the attorney representing you about the debt. They may contact others only to learn your address, home phone number, or place of employment. Usually, they're not allowed to contact a third party more than once and aren't permitted to discuss your debt with anyone except you, your spouse or your attorney.
Disclosure Requirements
Within five days of your first contact,debt collectors are required to send you a written validation notice that tells you how much money you owe . This notice must include the creditor's name and instructions on proceed if you don't owe the money.
Errors
Debt collectors are required to cease contact if you send a letter stating that you don't owe the debt, or a portion of it, or if you ask for verification of the debt. You have to send the letter within 30 days after you receive the validation notice, and the debt collector can contact you again with a written verification of the debt that would be something like a copy of the bill for the amount stated.
Harassment
Debt collectors aren't allowed to harass you in any way. They're not allowed to use threats of harm or arrest for nonpayment. They're not allowed to use obscene language or to use the phone to annoy you. This includes calling repeatedly without any legitimate purpose beyond harassment.
For more information on off-limits practices visit the FTC's website or the website for Americans for Fairness in Lending.
Garnishments
Your wages and bank account can only be garnished if the debt collector is granted a judgment against you in court that directs a third party, like your bank, to turn over funds to pay the debt.
The FTC recommends that you "Don't ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment." Many federal benefits are exempt from garnishment. Visit the FTC's website for a full list of exempt benefits.
