Your rights under the FDCPA (the law that governs debt collectors)
The Fair Debt Collection Practices Act (FDCPA) applies to third-party debt collectors — agencies that purchased your debt or are collecting on behalf of a creditor. It does not apply to original creditors (like your bank) chasing their own debt, though many states have equivalent protections that do.
Before you say anything: three things to establish first
1. Verify the debt is actually yours
Debt collection errors are more common than most people realize. Accounts get sold multiple times, balances get inflated, and sometimes the debt isn't even yours. Before engaging on the substance, request written verification. You're entitled to it.
2. Check the statute of limitations
Every debt has a statute of limitations — the period during which a creditor can sue to collect. In most US states this is 3 to 7 years from the date of last activity. After this window closes, they cannot obtain a judgment against you in court. Knowing this changes your negotiating position significantly.
Important: making a payment or acknowledging the debt in writing can restart the clock in some states. Get advice before acting on old debt.
3. Know what you can realistically offer
Never go into a negotiation without knowing your number. Decide what you can actually afford — a lump sum, a payment plan, or nothing right now — before you pick up the phone. Collectors are trained to extract commitments in the moment.
Scripts for the four most common situations
Requesting written verification (use this first, every time)
Negotiating a settlement (lump sum)
Typical settlement range: Debt buyers often purchase debts for 3–7 cents on the dollar. Settlement offers of 40–60% of the original balance are frequently accepted, particularly on accounts that have been in collections for some time. Never start at your maximum number.
Requesting a payment plan
Disputing an error
What to never say to a debt collector
- "Yes, I owe this." — Don't acknowledge the debt before you've verified it and checked the statute of limitations.
- "I can pay [large amount] next week." — Never commit to a number you can't guarantee. A broken promise restarts the collection intensity.
- Your bank account or routing number. — Never give payment details over the phone until you have a signed written agreement.
- "I'll send something." — Vague partial commitments don't help. In some states, any payment can reset the statute of limitations clock.
- Nothing at all. — Ignoring collectors doesn't make the debt disappear. It can lead to a judgment against you, wage garnishment, and a much worse credit outcome.
After the call: what to document
Keep a log of every call: date, time, name of the collector, what was said, and any offers made. If they violate the FDCPA — threatening you, calling outside permitted hours, misrepresenting the debt — document it immediately. These violations are legally actionable, and the threat of an FDCPA complaint is a legitimate negotiating tool.
Any agreement you reach must be in writing before you make a single payment. A signed letter or email confirming the settlement terms protects you from the account being sold to another collector later.
This is educational information, not legal advice. For complex situations — lawsuits, wage garnishment, significant medical debt, or tax debt — consult a nonprofit credit counselor (NFCC.org) or a consumer law attorney. Many handle FDCPA violations on contingency.