Debt collectors must operate within the boundaries of strict rules about when they can contact individuals who are in debt. This includes business owners who have taken out loans and/or other lines of credit in order to finance their business operations and/or otherwise make ends meet.
The federal Fair Debt Collection Practices Act (FDCPA) sets the baseline, and some states have added additional protections. These laws aim to prevent harassment and ensure that collection efforts remain professional and respectful.
Under the FDCPA, debt collectors generally cannot call before 8 a.m. or after 9 p.m. in your time zone unless you have given them permission to do so. They also may not contact you at times when they know (or should know) ar inconvenient for you. For example, if you work night shifts and have told them mornings are off-limits, they must respect that.
Collectors are also limited when it comes to calling you at work. They cannot tell your employees or coworkers why they are calling and cannot discuss your debt with anyone but you, your spouse or your attorney.
The law also prohibits repeated or continuous calls intended to harass or annoy you. This means a collector cannot flood your phone with calls in a short period to pressure you into paying. They also may not threaten you, use obscene language or misrepresent who they are or the amount you owe.
There are also clear rules about when they must stop calling altogether. If you send a written request asking them to cease communication, they can only contact you to confirm that they won’t reach out anymore and if they do, it must only be to inform you about a specific legal action they plan to take. If you have an attorney representing you, they must direct all communication to that attorney rather than to you personally.
When debt collectors don’t respect the law
Debt collectors are allowed to call if they are legitimately trying to collect a debt within the permitted hours, using professional language and respecting your rights. They can reach out to request payment, discuss settlement options or provide required notices about your account. They are not permitted to engage in a host of other behaviors, although many often ignore these rules.
If you believe a debt collector is violating these rules, you can document the calls, save any voicemails or messages and seek legal guidance. A skilled legal team can help determine if a collector’s behavior is illegal and whether you may be entitled to damages. They can also help you to determine a viable way forward when it comes to your debt, possibly including business restructuring or bankruptcy, for example. Knowing your rights can help you take control of the situation, stop abusive collection practices and regain your company’s stability.