California State Debt Collection Law

If you have had some financial setbacks, you have probably been contacted by one or more collection agencies. Although many debt collection companies are ethical and willing to work with you to get your accounts settled, some engage in practices that are unethical or even illegal. Residents of California are protected against such activities by both by federal law and by California's Fair Debt Collection Practices Act.

Federal Debt Collection Law

The tactics used by debt collectors are governed under the federal Fair Debt Collection Practices Act. The act regulates how and when a debt collection agency can contact you. The act also prevents the agency from making frivolous threats, and it gives you several ways to either force the collection agency to verify your debt or ask it to stop contacting you entirely.

California Fair Debt Collection Practices Act

California has its own version of the Fair Debt Collection Practices Act, which is similar to the federal law but includes some other provisions. California residents can file a complaint with the California Attorney General's office if a debt collector violates the California Fair Debt Collection Practices Act.

Telephone and Mail Contact

Under state law, a collection agency can contact you by telephone only between 8 a.m. and 9 p.m. Furthermore, a bill collector cannot call you at work if you inform it that you are not permitted to receive such calls. Any mail sent to you at your office must be marked as "Personal and Confidential."

After the first time a collection agency contacts you, it must send, within five days, a letter stating the amount you owe, the name of the original creditor, and instructions on what to do if you dispute the debt. If the agency sends you subsequent letters and there has been a change in the amount you owe, the letter must explain these additional charges.

Postdated Checks

If a collection agency asks for a postdated check, be sure that you write "postdated" above the date on the check. If your check is postdated by more than five days, the collection agency must notify you in writing three to 10 days before your check is cashed.

Statute of Limitations

Bill collectors sometimes attempt to collect on debts that are past the statute of limitations. Sometimes known as "zombie" or "time-barred" debt, these debts are not legally collectible (your wages can't be garnisheed to pay them off), but this doesn't stop some collectors from aggressively pursuing them. California law sets the statute of limitations for credit card and written contract debt at four years, and for judgments at 10 years. If you are contacted by a collector who is trying to collect a debt that is past the statute of limitations, notify the collector in writing that the debt is not collectible.