California Law on Bill Collecting

Taking the time to understand California's laws on bill collecting can teach you how to respond to collection agents when they contact you and help you recognize if an agency is using abusive or unfair tactics. The California Fair Debt Collections Practice Act prohibits bill collectors from threatening you with physical violence or adding excessive interest charges to a debt you owe. Report collection agencies who violate the law to the state Attorney General's Public Inquiry Unit and the Federal Trade Commission.

Contact with You

Bill collectors may not harass you by making a high number of phone calls within a brief period or call you at inconvenient times such as before 8 a.m. or after 9 p.m. It is also against the law for them to call you at work if you tell them your boss does not permit such calls. You can stop the phone calls by requesting in writing that the collection agency cease all communication with you.

Abusive Tactics

A collection agent is prohibited from using obscene or abusive language and cannot physically threaten you or remove or damage your possessions in order to collect a debt. A collection agency may not embarrass you by publishing your name and the amount you owe in a public place or send mail to your workplace that identifies on the envelope it is a collection agency. The agent telephoning you must identify himself to you and cannot trick you into accepting a collect call by claiming to be someone else.

False Representation

According to California law, a collection agent cannot use a false business name or claim to be a representative of law enforcement or a credit reporting agency employee or suggest he is connected to the government. Collection agencies may not send you any document designed to look like it came from an attorney or courthouse. They also may not communicate false information to a credit agency such as failing to report your dispute of a debt.

Third-Party Communication

A collection agency cannot contact other people to discuss the terms of your debt unless it is your spouse, a co-debtor or your attorney. Collectors may contact your employer in writing to verify your employment or business location or garnish wages if a judgment has been entered against you. If an agent has not heard from your employer within 15 days of the first contact, other means of communication can be used.

Unfair Practices

It is illegal for a collection agent to add charges or interest fees of more than 10 percent to a debt unless stated in the original agreement with the creditor, according to California law. It is considered an unfair practice for an agency to accept a check postdated for more than five days unless you are notified within three to 10 business days in advance of when it is deposited.

Report Law Violations

Report any law violations to the California Attorney General's office and file a complaint with the Federal Trade Commission if you believe your rights have been violated by an agent or the agency in the collection of a debt. If you can show documentation or have witnesses, you can sue a collection agency for harassment and for violation of the Fair Debt Collection Practices Act and may win up to $1,000 for any FDCPA violation.