As a consumer, it is important to understand your rights and responsibilities. This is particularly true if you fall behind on debt payments.

The Fair Debt Collection Practices Act (FDCPA) outlines some hard and fast rules that apply no matter where you live in the U.S. For example, the FDCPA states that a collector may contact you only between 8 a.m. and 9 p.m. Collectors are also forbidden from lying or engaging in unfair practices, such as communicating with you by postcard.

In addition to the Federal laws, each state sets laws as to what, and how, a creditor can collect on a delinquent account. Some states permit a creditor to garnish a debtor’s wages; others don’t (like Texas). Some states exempt just about all assets a debtor has from seizure by a creditor to satisfy the payment of a debt. Other states can force you to sell some of your assets to satisfy a judgment.

While I don’t recommend packing your bags and moving to Texas to avoid potential wage garnishment, I do recommend knowing what is and is not possible in your state of residence. Unfortunately, learning about your state collection laws is not as easy as it sounds. There are a few law firm Web sites that offer a breakdown of state laws; however, most have disclaimers stating that the information may not be accurate or complete. Laws change constantly making it hard for anyone to maintain a list that is up-to-date.

The Federal Reserve has the role of protecting consumers (though Congress is currently considering the creation of a new Consumer Financial Protection Agency) and their Consumer Help Web site contains some good general information about consumer issues. For more specific information about your state laws, you can research state statutes related to debt collection or you can contact your local consumer protection office. A list of state and county consumer protection offices can be found on the Federal Citizen Information Center’s Web site.

For more on this topic, also see:

Consumers ask about debt collection & their rights
Dealing with someone else’s collection calls
How to resolve three common consumer complaints

My turn for a disclaimer: I am not an attorney. For legal advice, it is always best to seek legal counsel.

Our Advice Team answers thousands of consumer questions each year. Writers most often ask about their rights when it comes to debt collection. In case you are struggling with debt collection and your rights, following are a few of the common questions received and answered.

Dear Advice Team: I am behind on payments and a collector is now calling my sister. Not only is he harassing me, but he’s harassing innocent people. It’s humiliating! Someone told me that it is illegal for a collection agency to do this. Is it? -Charles, Iowa

Charles: It may be hard to swallow; however, your collector is permitted to contact other people. They are only supposed to do this to find out where you live, what your phone number is, and where you work. Fortunately, in most cases, the collector may not divulge the reason for the call to anyone other than you or your attorney. To learn more about your rights, I recommend you read the Fair Debt Collection Practices Act at FTC.gov.

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Advice Team: I am working on repaying a debt owed to a home-based fitness trainer. To get a commitment, she requested six post-dated checks. I’m not sure I’m comfortable with that. What are your thoughts? -Michael, Colorado

Michael: In my opinion, post-dating a check is a bad idea. Most people believe that a post-dated check may not be paid until the date that is shown on the check. Unfortunately, a bank can pay a post-dated check even if the check is given to the bank prior to the date posted on the check.  Instead, write to the trainer explaining when and how you plan to repay the debt.  Then, stick to your plan!

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Dear Advice Team: I owe a debt to a collection agency. I offered them a payment plan, but they refused it. The collector said, “That’s too little, we have to have at least $50 dollars a month.” If a collector refuses a payment plan, does debt become void? –Cheryl, New Mexico

Cheryl: Even if the creditor refuses your payment plan, you still owe the debt. That being said, many collectors will apply partial payments if you send them. I highly recommend that you begin communicating with the creditor in writing. Keep copies of all correspondence for your files.

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Dear Advice Team: A credit collections agency calls every day. I can’t talk to them about the account because it is in my wife’s name. I have explained that my wife is dealing with the issue. In the meantime, what can I do to stop the calls? -Jim, Texas

Jim: Under the Fair Debt Collection Practices Act (FDCPA), your wife has the right to stop the calls. To do this, she will need to write to the collection agency asking them to cease further communication. Once the letter is received, the collector is not permitted to call unless they plan to terminate collection efforts or they intend to “invoke a specified remedy.” Just be aware that stopping the calls does not mean that she no longer owes the debt; in fact, it could even escalate the collection process. To get your finances back on track, you might both benefit from working with a reputable credit counseling agency.

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Advice Team: I am 26 and have NEVER been late on my credit card. Recently, the credit card company (that I worked with for years) changed my rate from 7.99% to 28.99%. When I contacted them, I was told about a notice I received and that the rate was raised based on my credit report. I do not get how a company could do this. –Elizabeth, Maine

Jeri: One of the most common triggers of a rate increase lies in what is called the Universal Default clause. Basically, this clause permits your creditor to raise your interest rate, or even close your account, based on your overall credit situation. You should have the opportunity to close the account and keep your current interest rate. Contact your creditor for information.

If you have a question for the Advice Team, please don’t hesitate to ask!  It’s free and confidential; however, please do keep in mind that we are not attorneys.  For legal advice, it is always best to seek legal counsel.

In a recent Ask Amy column, “Frustrated” wrote for advice on how to deal with collection calls she and her husband were receiving on behalf of her brother-in-law.  Amy suggested that “Frustrated” do some more research because her husband may have been a cosigner on the loan.  While that certainly is a possibility, it is not the most likely. 

In a subsequent column, “Patti” wrote in to disagree with the previously given advice. She wrote:

Dear Amy: I’m responding to “Frustrated,” who is getting collection agency calls for her brother-in-law.

You suggested that her husband may have co-signed for a loan and that she should call the agency “to get to the bottom of their household’s entanglement” with the brother-in-law’s finances.

Allow me to disagree. Collection agencies find as many avenues as possible to collect their money.

I used to get calls for my stepsister’s ex-husband, and she and I never even had the same last name!

I suggest ignoring the calls.  — Patti

Apparently, “Patti” wasn’t the only one who wrote in about the issue.  Since we are all voicing our opinions, I’d like to take a turn and suggest a course of action other than ignoring the calls. 

“Frustrated” said that she and her husband “received a message on our answering machine from a collection agency asking for my brother-in-law to be responsible and pay his bills.”  If this is the case (and assuming that “Frustrated’s” husband did not cosign for a loan), it appears as though the collector violated the Fair Debt Collection Practices Act (FDCPA).  Section 804 of the FDCPA stats that “Any debt collector communicating with any person other than the consumer for the purpose of acquiring location infor­mation about the consumer shall not state that such consumer owes any debt.”

My advice to “Frustrated” is that she report the collection agency’s actions to the Federal Trade Commission (FTC).  While the FTC does not resolve individual consumer complaints, they do work to detect patterns of wrong-doing, and lead to investigations and prosecutions. The FTC also enters all complaints it receives into Consumer Sentinel, a secure online database that is used by thousands of civil and criminal law enforcement authorities worldwide.  The FTC receives more complaints about the debt collection industry than any other specific industry.  In 2007, the FTC received 70,951 FDCPA complaints. 

To stop future calls from this collector, “Frustrated” can simply pick up the phone one time and explain that she understands her rights under the FDCPA.  The FDCPA also states that “Any debt collector communicating with any person other than the consumer for the purpose of acquiring location infor­mation about the consumer shall not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information.” 

BTW, on a more personal note, I think Amy’s advice to “Frustrated” that she “tackle this issue now” was spot on.  Maybe “Frustrated” can positively influence and mentor both her brother-in-law and father-in-law.  That being said, I should probably mention that I am not an attorney or a family therapist!