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Millennial Money: What new debt collector rules mean for you

FILE - In this Oct. 1, 2020 file photo, a woman walks past a personal finance loan office in Franklin, Tenn. The rules that dictate how third-party debt collectors interact with consumers are getting an update. These rules say how to apply the more than 40-year-old Fair Debt Collections Practices Act, which serves as a consumer guidebook on dealing with debt collectors. Some changes will help consumers, like one that limits when collections accounts can be reported to a consumer's credit profile. (AP Photo/Mark Humphrey, File)
FILE - In this Oct. 1, 2020 file photo, a woman walks past a personal finance loan office in Franklin, Tenn. The rules that dictate how third-party debt collectors interact with consumers are getting an update. These rules say how to apply the more than 40-year-old Fair Debt Collections Practices Act, which serves as a consumer guidebook on dealing with debt collectors. Some changes will help consumers, like one that limits when collections accounts can be reported to a consumer's credit profile. (AP Photo/Mark Humphrey, File)

By SEAN PYLES / NerdWallet via The Associated Press 5 min read

Working with third-party debt collectors can be confusing and scary. For the more than 68 million U.S. adults with debt in collections, knowing their legal rights is crucial.

The Fair Debt Collection Practices Act covers third-party debt collectors – those who buy a delinquent debt from an original creditor, like a credit card company. An update to the rules on how the act is applied, announced by the Consumer Financial Protection Bureau in late October, alters the terms of engagement.

Some changes will modernize the law and clarify how it’s enacted. But consumer advocates say other revisions don’t go far enough or could have unintended consequences.

KNOW YOUR RIGHTS

The FDCPA offers several protections, including: