Debt collection can be stressful, and many consumers struggle to separate fact from fiction. Misinformation about debt collection laws can lead to unnecessary fear and confusion. Understanding the truth behind common myths helps consumers protect their rights and make informed decisions.
Debt collectors can call at any time of day
Many consumers believe that debt collectors can call at any hour, but federal law limits the times they can contact consumers. Under the Fair Debt Collection Practices Act (FDCPA), collectors can only call between 8 a.m. and 9 p.m. in the consumer’s local time zone. Calls outside of these hours violate consumer protection laws.
Ignoring debt collectors makes them go away
Some people think avoiding calls and letters from debt collectors will make the problem disappear. However, ignoring debt collectors can lead to more aggressive collection tactics, including lawsuits. Addressing the debt and understanding consumer rights can prevent further issues.
Debt collectors can have consumers arrested
Debt collection agencies may use intimidating language, but they do not have the power to arrest consumers for unpaid debts. Civil debts, such as credit cards or medical bills, do not result in jail time. The only exception occurs when someone refuses to comply with a court order related to the debt.
Paying any amount resets the debt
Many believe that making a small payment restarts the debt’s statute of limitations. In Maryland, a partial payment can reset the clock on the statute of limitations for certain debts, potentially reviving a collector’s ability to sue. Consumers should understand Maryland’s specific laws before making any payments on old debts to avoid unintended legal consequences.
Debt collectors can contact family and employers about a debt
Collectors can reach out to third parties only to locate the consumer, but they cannot discuss the debt. Contacting an employer or family member repeatedly about a debt may violate federal law. Consumers can request in writing that debt collectors stop contacting them at work.
Consumers have no legal recourse against harassment
Many assume there is no way to fight back against abusive debt collection practices. However, the FDCPA protects consumers from threats, harassment, and deceptive practices. Consumers can file complaints with the Consumer Financial Protection Bureau (CFPB) or take legal action against violators.
Knowing the truth about debt collection myths helps consumers take control of their financial situation. Understanding legal protections ensures that debt collectors follow the law while consumers work toward resolving their debts.