BBB Lays Out What Collection Agencies Can And Cannot Do

June 12, 2017

Marlborough, MA - It can be frustrating and scary to fall behind in payments on your credit card or other accounts. When the calls from collection agencies start, it adds a new level of stress. Don’t panic. Take a deep breath, learn about what collection agencies can and can’t do, and work to resolve your issues.

“Consumers need to know that there are rules set in place to protect them from collection agency issues” says Paula Fleming, spokesperson for the local BBB. “If you are receiving a harassing call or email from a debt collector, the best protection against debt collection scams is simply knowing your rights.”

Here are a few tips consumers should keep in mind when dealing with a collection agency:

When you are dealing with a collection agency

Keep track of all the calls you receive from a collection agency and save all written statements. Do not give out personal or financial information until you have confirmed that the collection agency is legitimate. If you can work out a deal to pay monthly or reduce your owed debt, get the details in writing. When you pay off your debt, make sure you get and save documentation of the resolved debt.

What should you do if a debt collector sues you?

Do not ignore a lawsuit summons. A debt collector can sue you to collect a debt and a court judgement can result in third parties like your bank or employer turning over funds to pay your debt. If you do not show up in court, you are losing your chance to fight garnishment. Make sure you or your lawyer respond to a lawsuit by the date in the court papers.

What should you do if a debt collector violates the law?

If you think a debt collector has broken the law in their dealings with you, you have a year from the violation to sue. Remember that even if the debt collector violates the law, a legitimate debt does not go away.

In the United States, your state Attorney General’s officethe FTCthe CFPB can help. Many states have their own debt collection laws and your Attorney General’s office can help you understand them. In Canada, contact your provincial or territorial consumer affairs office.

You can file complaints and reviews of collection agencies at

For more BBB facts on what collection agencies can and cannot do in the United States or Canada, visit

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ABOUT BBB:  For more than 100 years, Better Business Bureau has been helping people find businesses and brands they can trust. In 2016, people turned to BBB more than 172 million times for BBB Business Reviews on more than 5.3 million businesses, all available for free at 

The Council of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada and Mexico, as well as home to its national and international programs on dispute resolution, advertising review, and industry self-regulation. BBB Serving Eastern Massachusetts, Maine, Rhode Island and Vermont was founded in 1920.
Paula Fleming is Chief Marketing & Sales Officer for Better Business Bureau Serving Eastern MA, ME, RI & VT.  Find Paula on Google+.