💵 Consumer RightsUpdated: September 2, 2026

Fair Debt Collection Practices Act (FDCPA): Post-Default Rights, Harassment Bans & Garnishment Caps

By Consumer Credit Underwriting Review Board

Borrower legal protections after default: 15 U.S.C. § 1692 harassment prohibitions, mandatory debt validation letters, and federal Title III wage garnishment restrictions.

If a borrower defaults on a short-term cash advance, third-party collection agencies must strictly adhere to the Fair Debt Collection Practices Act (FDCPA).

1. Critical FDCPA Statutory Safeguards

  • Prohibited Calling Hours: Collectors cannot contact consumers before 8:00 AM or after 9:00 PM local time.
  • Workplace Contact Bans: Collectors must immediately cease calling an employer once notified that the employer prohibits personal calls.
  • Harassment & Threat Prohibitions: Falsely threatening arrest, criminal prosecution, or immediate wage garnishment without a court judgment is a federal violation punishable by statutory damages up to $1,000 plus attorney fees.
  • Federal Wage Garnishment Limits (CCPA Title III): Wage garnishment cannot exceed the lesser of 25% of disposable earnings or the amount by which weekly earnings exceed 30 times the federal minimum wage ($217.50/week).
🏦

Consumer Credit Underwriting Review Board

Our research panel evaluates small-dollar credit underwriting standards, TILA APR disclosures, state usury rate caps, and CFPB consumer protection rules.

Need Immediate Emergency Liquidity?

Check rate options with 50+ participating online lenders in our verified national network.

Check Eligibility →