Can A Debt Collector Contact My Employer? (2024)

FAQs

Can A Debt Collector Contact My Employer? ›

For the most part, collection agencies and collectors can communicate only with you. Generally, the law prohibits debt collectors from telling friends, relatives, employers, neighbors, or other third parties about the debt they claim you owe. However, the law provides a few exceptions to this general rule.

Essentially, a debt collector or loan company isn't allowed to communicate with your employer unless you've explicitly permitted them to do so. The Fair Debt Collection Practices Act (FDCPA) is an important piece of legislation passed by Congress to provide clarity on this and other related matters.

Generally, a debt collector can't contact third parties, such as your employer, about your debt, subject to a few exceptions.

There can be legal contact between a debt collector and your employer or their HR department. Here's how and why the collector can legally contact your job: They can call to verify your employment with that company. They can request your phone numbers and physical address.

Your FDCPA dispute rights are a powerful tool. Once you dispute the debt, the debt collector must stop all debt collection activities until it provides you with proof that you actually owe the debt. If the debt collector can't provide you with that proof, it will never bother you again.

If you receive a notice from a debt collector, it's important to respond as soon as possible—even if you do not owe the debt—because otherwise the collector may continue trying to collect the debt, report negative information to credit reporting companies, and even sue you.

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

If a debt collector tries to collect a time-barred debt from you, the most important thing is not to say or do anything that in any way admits that you owe the debt. By acknowledging the debt or even making even a token payment, you might inadvertently restart the limitations period.

You can sue the debt collector for violating the FDCPA. If you sue under the FDCPA and win, the debt collector must generally pay your attorney's fees and might also have to pay you damages. If you're having trouble with debt collection, you can submit a complaint with the CFPB.

How long before a debt is uncollectible? ›

Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you do not believe you should pay the debt, for example, if a debt is stature barred or prescribed, then you can dispute the debt.

While third-party debt collectors can call you at work, not only are they legally limited by what they can say about your debt, but they can't continue calling you there if you tell them to stop. It may be best to put this request in writing, in case they don't honor your verbal request.

Does disputing a debt restart the clock? Disputing the debt doesn't restart the clock unless you admit that the debt is yours. You can get a validation letter to dispute the debt to prove that the debt is either not yours or is time-barred.

What happens if debt collectors can't find you? If a debt collector is unable to find you, don't think you are in the clear. If you continue to ignore communicating with the debt collector, they will likely file a collections lawsuit against you in court.

California Coerced Debt: California SB 975, for debts incurred after July 1, 2023, requires a collector to cease collection until it completes a review when the debtor provides documentation and a sworn statement that the debt was coerced. A person who coerces a debt is civilly liable.

If a debt collector does not respond to your dispute letter within five days of their initial communication with you, or if they continue to contact you or try to collect the debt without sending you verification, they are violating the FDCPA and you have several options to protect yourself and your rights.

Unresolved collection accounts

Collections accounts can appear to a hiring professional like you lost control of your financial life at some point.