Rights Against Debt Collectors

This page is for people who buy things for their own personal, family, or household use. Most of the law we explain on this page doesn't apply to debts you got to run a business.

Are you behind on your credit card payments, your home mortgage, a personal loan or other debt? The creditor or a debt collector may contact you. The law can't stop reasonable attempts to collect debts. But creditors and debt collectors aren't allowed to be abusive.

Your Rights

If the debt collector that is contacting you is not the person, bank, or company that you owe money, you have more collection rights.

You can stop a debt collector from calling you on the phone by writing a letter. It's important to know that the debt collector can still contact you in writing and can sue you to try to get the money.

The debt collector may send you a written notice containing the amount of the debt, the name of the creditor, and what action to take if you believe you do not owe the money.

Learn more about debt collection rules and how to stop debt collectors from contacting you.
Find out more about your rights at the Federal Trade Commission's debt collection website.

I Don’t Owe the Money

If you don’t think you owe the money, you can send the debt collector a letter telling them that you don't owe the money. You have to send the letter within 30 days of the first time the debt collector contacts you. Then the debt collector can't call you to collect the debt. If the debt collector then sends you proof that you do owe the debt, the debt collector can start trying to collect the debt from you again.

I'm Behind On Payments

Have you defaulted on a loan or fallen behind on your credit card payments?

The creditor usually has the right to go to civil court to get a court judgment or order to collect the total amount of the debt. The creditor can sue you if you are behind, even if you are sending in payments.

If you get court papers about a loan or credit card, you may have defenses to judgment (reasons the Court may say you don't owe the money) or defenses to payments on a judgment (reasons you may not have to pay, even if the Court says you owe the money.) See our Defend Yourself in Court page to find out more.

Creditors will often settle the case for less than the total amount you owe. If they do, be sure to get them to put an agreement in writing.

A creditor or debt collector might tell you that they "won't accept" partial payments, but they will keep whatever money you send them and keep asking you to send more. We have never heard of a creditor or a debt collector saying they won't accept money and sending it back to the debtor !

What Else Can I Do?

If you have read this information and still need help, you might consider filing for bankruptcy. There are many things to decide before you file for bankruptcy. You may be able to get free legal help. Fill out our form and we will call you back. Your information will be sent to Legal Services Vermont, which screens requests for help for both Vermont Legal Aid and Legal Services Vermont. You can also call us at 1-800-889-2047.