How to Stop Credit Card Collection Calls

If you stop making at least the minimum payments on your credit card accounts, it can lead to trouble. Your credit card balances may soon be subject to debt collection. That means your life is about to get stressful. 

Understanding who may come calling for repayment and what they can do is crucial for you. Knowing your rights can help you figure out how to get out from under unaffordable credit card debt.

What happens when you stop paying your credit cards?

If you stop paying your monthly credit card bills, your card issuers will find other ways to seek payment. They may send letters demanding repayment of the overdue amounts. They may begin calling you at home, on your mobile phone, and at work. 

Besides contraction you, credit card companies may close your account so you won’t be able to charge any more purchases or take cash advances. Most credit card companies or banks report your non-payment to credit reporting agencies, which can make your credit score plummet.

Typically, credit card companies pursue you for about 90 days. At that point, they may charge off the debt, essentially assuming that you won't pay the account. Next, they send your account to a collection agency or sell it to a debt buyer. That party takes over collection attempts and begins contacting you.

If you want to stop collection attempts, it’s essential to know which type of company is contacting you. Debt collectors and debt buyers are subject to a federal law protecting consumers and must adhere to specific rules during collections. Original creditors like banks and credit card companies can often be more aggressive.

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How do debt collectors work?

A debt collector is an individual or company that attempts to collect repayment on overdue debts. Debt collectors are third parties that work on behalf of the original creditor or credit card company. 

Debt collectors are governed by the Fair Debt Collection Practices Act (FDCPA) and must adhere to its rules. The Act was passed in Congress in 1978 and was "designed to eliminate abusive, deceptive, and unfair debt collection practices," according to the Federal Reserve.

Per the FDCPA, debt collectors cannot call before 8 a.m. or after 9 p.m. in your time zone, and they cannot contact you at your place of business if they have reason to believe your employer prohibits these types of calls. The Act also prohibits harassing and abusive practices, false representation, and unfair collection attempts. Additionally, if you request the collector to stop contacting you, the collector must cease communication except to let you know that it will stop contact or to let you know that it plans to sue you. 

It’s important to note that original creditors — the credit card companies, banks, or personal loan providers who loaned to you — are not covered by the FDCPA and do not have to adhere to its rules. Some states have similar laws covering collection calls from original creditors, but no national law currently regulates these entities.

How do debt buyers work?

Debt buyers are companies or individuals that purchase an outstanding debt from a creditor — typically for much less than the overdue balance.  

Unlike debt collectors, debt buyers do not work on the creditor's behalf. Once they purchase the debt, they own it. Because of this, as long as their main line of business is not debt collection, they have the same collection rights as the original creditor. For example, if the debt buyer is a bank that purchases debt in addition to its primary banking business, it is not subject to the FDCPA's rules and can contact you just like your credit card company.

If your debt is sold to a debt buyer, it’s often worth exploring a settlement. Because debt buyers purchase debts at a fraction of their worth, they’re typically more open to negotiating than debt collectors are. This can often help you settle your debt for much less than you owe.

How to stop collection calls from credit card companies

If you're getting collection calls from credit card companies, you may have fewer options. Original creditors aren't subject to the FDCPA and can collect on overdue debts much more freely.

While that doesn’t mean they can call you at all hours or harass you with collection calls at work, there is less protection against these collection attempts — at least federally. 

In some states, like California, laws explicitly regulate creditor activity. If you’re not in a state with a creditor-specific law, you have some options for stopping collection calls from a credit card company. Some laws governing telemarketing, for instance, may be applied to collection calls. In any case, it can’t hurt to write a cease and desist letter if you want no contact – and it might work.

Know your rights

The FDCPA is designed to protect you from unfair harassment by debt collectors. This law restricts when, how and how often debt collectors can contact you. The law outlines specific information about your debt that debt collectors must provide. You have the right to dispute the debt, request verification, or demand that collection calls stop altogether.

Send a cease and desist letter

If you want to stop debt collectors from contacting you, you can send a cease-and-desist letter. This letter legally requires them to stop calling you, except to inform you of specific actions like filing a lawsuit. 

The CFPB offers sample cease-and-desist letters. You can use these to help write a letter that fits your situation. Make sure to send this letter by certified mail with a return receipt requested. That will give you proof that it was received.

Sending a cease-and-desist letter won’t get you out of paying money that you owe. However, it should stop debt collectors from harassing you. This can give you time to figure out how to handle your debt problem.

Reach a settlement agreement

A debt settlement agreement is an arrangement you make with a creditor, allowing you to pay off your debt for less than you owe. You can negotiate with your creditors yourself or hire a debt settlement company to do this for you. According to an American Association for Debt Resolution study, the average debt settlement user saves $2.64 for every $1 in fees paid. Understand, however, that creditors are under no obligation to settle debt and that no debt settlement company can guarantee a result. 

Keep in mind that it can take months to settle each account and two to four years to settle all of your eligible debts, according to the AADR. In the meantime, you may still get collections calls and mailed collections attempts from your credit card issuers. There also may be some tax consequences when settling a debt, so talk to your accountant or financial advisor to ensure you’re prepared.

Work with a credit counselor

Debt and credit professionals can help you determine the best path forward for tackling your debts. They can help you with budgeting, negotiate lower interest rates or payments with your creditors, or help you consolidate your debts into a debt management plan. In many cases, these options can help slow or even stop collections attempts from your card issuer.

File for bankruptcy

Most credit card debts are dischargeable under bankruptcy, which means those debts are forgiven and no longer need to be repaid. The card issuer cannot collect on the debt, and the calls and mailings should cease.

Bankruptcy is a last resort for most people because there are upfront costs like attorney charges and filing fees. Bankruptcy creates a public record and stays on your credit report for up to 10 years. You also may find it challenging to buy a home, purchase insurance, get certain kinds of jobs, take out a loan, or get a credit card (even a store one) for years to come. Depending on what type of bankruptcy you file, you could also lose assets in the process.

How to stop collection calls on overdue credit card bills

Stopping collection calls depends on what type of company is trying to collect. If it’s a debt collection agency or a debt buyer whose primary business is debt collection, you’re protected by the FDCPA and have some options.

When you hear from a collection agency or debt buyer, make sure you owe the money. Debt buyers and collection agencies often purchase old obligations, and the account might not be yours. Without acknowledging that you owe anything, make them validate the debt in writing. 

If you want to stop collection calls, write a cease and desist letter requesting that the agency stop contacting you. You can also ask the company to only contact you through your attorney or at particular times and via specific methods of communication – for instance, you can say that you only want emails, not phone calls.

The Consumer Financial Protection Bureau has several sample letters you can use as your basis for this. To get started, you will need information about the debt collection agency, including its name and contact details, the debt it says you owe, any interest or added fees you’re being charged, and when/how the debt accrued. 

Make copies of the letter (keep one for yourself) and send the original to the collection agency via Certified Mail. This will ensure you’re notified once they receive it.

 Beyond writing a letter, you might also consider:

• Working with the agency to settle the debt: Settling to pay off your debt (usually for less than you owe) can stop collection attempts. You can try this on your own or enlist the help of a debt relief company. 

• Enrolling in a debt management plan (DMP): Once you enroll in a DMP, collections calls and attempts should stop – as long as you make your agreed-upon monthly payments.

• Consulting an attorney: Suing a debt collector is an option if you believe it has violated fair collection practices or is harassing you. You’ll have to pay legal fees and court costs (though, if you win, the debt collector may be forced to reimburse you).

• Filing bankruptcy: As a last resort, you can file for bankruptcy, which may discharge many of your debts. Beware, though: bankruptcy stays on your credit report for anywhere from seven to 10 years and could impact your financial options in the future.

If you believe a debt collection company is violating FDCPA, you can take legal action against them. You can also file a complaint with the CFPB or your state attorney general.

What to do if collection calls continue

File a complaint

Are debt collectors still contacting you after you’ve given them written notice to stop? If so, you can file a complaint with the CFPB or your state’s attorney general’s office. These organizations can investigate your complaint. As a result, they may take action against collectors who violate the law.

Document everything

Keep detailed records of all interactions with debt collectors. Note the date and time of calls, the name of the collector, the company they represent, and what was discussed. Try to handle as much contact as possible in writing, and keep a copy of everything. If you decide to take legal action or file a complaint, this documentation may support your case.

Should You Stop Credit Card Collection Calls?

Before writing a cease-and-desist letter, understand that once you cut off communication with your creditor, you may leave it no option but to sue you. For this reason, it might be better to keep the lines of communication open, even if it’s uncomfortable. If you’re working with a debt settlement company, you can choose to refer the callers to your debt consultant.

And if you think the collection attempts you’re receiving violate the FDCPA or could be considered abusive or harassing, file a complaint with the CFPB, contact your state attorney general, or seek legal counsel.

Taking action

If you need to stop a debt collector from calling you, here are some steps to put the above information into action: 

• Assess your financial situation. Determine where you stand and what options might work best for your circumstances.

• Choose your approach. Decide whether to negotiate with your creditors, work with a credit counselor, or explore other debt relief options.

• Document interactions. Keep detailed records of all communication with debt collectors. Include dates, times, and the content of the conversations.

• Know your rights. Stay informed about your rights under the Fair Debt Collection Practices Act (FDCPA). Check that debt collectors are obeying this law.

• Seek professional guidance. If you’re uncertain about your next move, consider consulting a financial advisor or debt relief professional for personalized advice.

These steps can help you handle your debt problems. That could start you moving toward financial freedom.