Identification

• The Fair Debt Collections Act was passed to protect individuals from abusive debt-collection practices. The debts covered by the act are personal consumer obligations, such as car loans, credit card debt, mortgages and health care bills. Commercial debts, such as those related to your business, are not covered by this legislation.
  
  

Harassment or Threats

• A debt collector is not allowed to harass you with threats to your safety. He may not use vulgar language or make false claims about his identity. Additionally, the collector cannot falsely accuse you of having committed a crime or threaten you with arrest if you do not pay your debt.
  
  

Contact

• It is illegal for a collection agent to contact you before 8 a.m. or after 9 p.m. for the purpose of debt collection without your permission. She may not contact you at work if you have expressly told her that you are not allowed to accept phone calls on the job. You can stop a collector from contacting you by sending him a certified letter telling him to refrain from calling you. This action does not forgive your legitimate debts and you may still be sued, but the collection calls should cease. If you have an attorney, you can insist that a collector speak only to your counsel.
  
  

Wage Garnishment

• If you legitimately owe money to a creditor and the collection agency sues you, a judge may issue orders to garnish your wages or assets. Your employer may be instructed to withhold part of your pay, or your banker may be required to use money in your account to pay your debts.
  The government protects certain federal benefits from debt-collection garnishment, including veterans', Social Security and military survivor benefits and railroad retirement payments. Federal disaster relief funds, military service pay and student aid funds are also protected.
  
  

Recourse

• If a debt collector legally violates your rights, you can file suit against her. If a judge finds in your favor, you can receive up to $1,000 in compensation for damages, such as lost income, health-related expenses and legal fees. However, you will still be liable for legitimate debts you owe, even if a collector acts unscrupulously and you receive compensation for his actions.