Press Release

Laws Protect Against Certain Debt Collection Tactics

March 9, 2022

(Anchorage, AK) – Debt collectors may use a variety of ways to engage with consumers to collect a debt, though Alaskans should be aware of the kinds of tactics that are illegal under federal and state law.

The Federal Debt Collection Practices Act (FDCPA) and the Alaska Unfair Trade Practices and Consumer Protection Act prevent debt collectors from using unfair and deceptive practices when collecting a debt. However, these consumer protections do not forgive legitimate debt, and the best way to avoid debt collectors altogether is to make timely payments on debts owed.

Questions about debt collection practices are among the most common from consumers to the Consumer Protection Unit at the Alaska Department of Law. In observance of National Consumer Protection Week, Alaska Attorney General Treg Taylor reminded consumers about their rights under the law.

“No one deserves to be harassed or threatened. There are many legitimate means for debt collectors to work, and most debt collection agencies follow the law,” Attorney General Taylor said. “Fortunately, the law protects consumers against the rogue actors who resort to illegal tactics.”

Under federal and state debt collection laws:

• Debt collectors may not threaten violence, use obscene language and profanity, or repeatedly call with the intent to harass or annoy.
• Debt collectors cannot make false or misleading statements, such as claiming a lawsuit has been filed when it hasn’t, threatening to garnish wages without the legal authority to do so, pretending to be an attorney when they are not, stating or implying that nonpayment of debt will result in imprisonment or criminal charges, or falsely implying that documents are legal documents when they are not.
• Federal law prohibits a debt collector from contacting consumers at their workplaces if they know it’s prohibited by an employer; and debt collectors cannot contact a consumer between 9 p.m. and 8 a.m. unless the consumer had previously agreed to it.
• Once a debt collector makes initial contact with a debtor, the collector must send written notice of the amount of the debt and the creditor owed within five days.
• Collectors cannot attempt to collect on a debt that a consumer disputes in writing within 30 days of receiving initial notice of a valid debt. Collectors must mail a written verification of a debt before they can resume collection efforts.

For more information about both federal and state debt collection laws, visit the Alaska Consumer Protection Unit Debt Collections resource or ftc.gov.

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Department Media Contacts: Communications Director Patty Sullivan at patty.sullivan@alaska.gov or (907) 269-6368. Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.