California Debt Laws

If you default on a debt, your original creditor may sell your account to a debt collection agency. Debt collection agencies contact debtors to attempt to collect the debt. Federal and state laws prohibit debt collectors from using unsavory tactics when speaking with debtors. California law works along with federal laws to give debtors in California protection from unfair debt collection practices.

Harassment Laws

Federal laws prohibit debt collectors in any state, including California, from harassing debtors. For example, debt collectors cannot call debtors at unreasonable hours or make threats that they cannot carry out, such as threatening to arrest the debtor if he does not pay his debts. Debt collectors may contact debtors at work unless the debtor specifically requests that they not do so. California law specifically forbids debt collectors from using obscene or profane language when talking with debtors.

Disclosures

A creditor does not have to disclose to a debtor that it is selling an account to a collection agency. Within five business days of first contacting a debtor, however, California debt collectors must disclose information to the debtor regarding his debt. The debt collector must provide the debtor with the name of the original creditor, the exact amount of the debt he owes, and what steps the debtor must take if he wishes to dispute the validity of the debt.

Contacting Others

Debt collectors in California may contact your friends and relatives to attempt to locate you. However, they may not discuss any details of your financial situation with these people. California debt collectors may contact your employer to verify that you are employed or verify your employment address or to set up wage garnishment following a court order. If the debtor owes money to a hospital or doctor's office, the debt collector may also ask employers if the debtor has health insurance through the company.

Cutting Off Contact

California debtors have the right to demand that a debt collection agency cease contacting them regarding specific debts. The debtor must make her wishes known in writing. She can demand that the collection agency stop contacting her at work or cut off contact altogether. Collection agencies may contact the debtor one final time after receiving such a request but then must cease communication Debt Help.com reports that collection agencies are more likely to file lawsuits against debtors if they cannot contact the debtor to resolve the debt out of court.