Dealing with a debt collection agency can be stressful, but knowing your rights and being prepared can make a big difference. Here are the Top 5 Things to Know Before Dealing with a Debt Collection Agency:

1. You Have Rights Under the Law (FDCPA)

The Fair Debt Collection Practices Act (FDCPA) protects you from abusive or unfair practices by debt collectors. Key protections include:

  • No calls before 8 a.m. or after 9 p.m.
  • No threats, harassment, or lying.
  • You can request they stop contacting you (in writing).

Tip: Always ask for everything in writing. It creates a paper trail and protects you legally.

2. Validate the Debt Before Paying Anything

You’re entitled to request debt validation—a written notice that proves:

  • The debt is real.
  • The collector has the right to collect it.
  • The amount is accurate.

You must do this within 30 days of the first contact. If they can’t validate it, they can’t collect.

3. Know What They Can (and Can’t) Do

Debt collectors can’t:

  • Threaten arrest or legal action they don’t intend to take.
  • Call your job if you’ve told them not to.
  • Talk to others about your debt (except your attorney).

They can:

  • Sue you (but must follow legal procedures).
  • Report to credit bureaus (but only accurate information).

4. Negotiate, But Get It in Writing

Many collectors will accept less than the full amount. You can:

  • Offer a lump-sum settlement.
  • Ask for a payment plan.
  • Request they remove the collection from your credit report after payment (a “pay for delete”).

Always get settlement agreements in writing before paying a dime.

5. Watch the Statute of Limitations

Every state has a time limit for how long a collector can sue you—this is the statute of limitations (usually 3–6 years).

Once it’s expired:

  • They can still try to collect, but not through a lawsuit.
  • Don’t make a payment or acknowledge the debt unless you know the statute—this might restart the clock.