No matter how far behind you are on paying your debts, your creditors have to play by the rules. Federal and state laws limit the tactics creditors and debt collectors can use to collect from you. If you life in California, you're protected under the state's Fair Debt Collection Practices Act. The law applies primarily to collection agencies, not to creditors who attempt to collect the debts themselves.
Contact
Bill collectors can only contact you between 8 a.m. and 9 p.m.; if those hours are inconvenient, you can request different times. There's no limit to the number of calls a collection agency can make, but making multiple calls in a short time to harass you is illegal. A collector must use his real name and the agency's name when he contacts you; the state law specifically forbids saying or doing anything that implies he represents the government or law enforcement.
Notification
A creditor -- with the exception of a health spa -- doesn't have to notify you that it's turning over your account to a collection agency. Once the agency contacts you, it must notify you within five days of the amount you owe, the name of the creditor and the process for challenging the bill if you disagree about the debt. If you do not wish to talk further, you can tell the agency not to contact you again, though the law allows the agency a final call to explain what actions it will take next.
Harassment
California and federal law prevent collection agencies from harassing you into paying. This includes calling outside the prescribed hours, using obscene or profane language or threatening violence. A collection agency can't lie about what it intends to do, or state that it will do something the law doesn't allow, such as put you in jail if that's not a penalty in your case. The company can't publicize your debts, and it can't threaten to report your debt to a credit bureau if it's not really planning to do so.
Considerations
Refusing to communicate with a debt collector can be a mistake, the California Attorney General states: The collector may feel she has no recourse but to sue. If you make a request, such as asking the agency not to call, do it in writing and keep a copy. If you disagree with the amount you're asked to pay, present the agency with copies of records that prove your position. If the agency charges interest or fees, it must be authorized by the original debt agreement, and you're entitled to a written explanation. California law states that a creditor cannot sue to seek repayment of a debt four years after the default if you have a written agreement, two years if it was oral.
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