A private parking company sent your unpaid notice to a collections agency. Now you're getting letters and maybe phone calls demanding payment. It feels intimidating. But here's what the debt collector isn't telling you: federal law gives you powerful rights in this exact situation.
The Fair Debt Collection Practices Act (FDCPA), codified at 15 U.S.C. § 1692 et seq., is a federal law that governs how debt collectors can behave. It applies to any third-party collector attempting to collect a private parking debt, and it gives you tools that can stop collection in its tracks.
What Is the FDCPA in Plain English?
The FDCPA is a federal law passed in 1977 to protect consumers from abusive, unfair, and deceptive debt collection practices. When a private parking company sends your unpaid notice to a collections agency, that agency must follow the FDCPA's rules. If they don't, they can be sued and held liable for damages.
The law applies to third-party debt collectors— meaning the collections agency, not the original parking company. However, if the parking company uses a subsidiary or affiliated company for collections that operates under a different name, the FDCPA may apply to them as well.
The 30-Day Validation Rule — Your Most Powerful Tool
Under FDCPA Section 809 (15 U.S.C. § 1692g), when a debt collector first contacts you, they must provide:
- The amount of the debt
- The name of the creditor (the parking company)
- A statement that you have 30 days to dispute the debt
- A statement that if you dispute, they must provide verification
You then have 30 days from their first contact to send a written dispute and demand debt validation. Once you send this letter, the collector must:
- Stop all collection activity until they provide validation
- Provide written verification of the debt, including proof that the amount is correct and that you owe it
- Provide the name and address of the original creditor if different from the current collector
This is enormously powerful in the private parking context. To validate the debt, the collector needs to prove that you parked at the location, that you violated the posted terms, that the signage was adequate, and that the amount is correct. Many private parking debts cannot meet this burden, especially when the original notice was based on faulty LPR technology.
What Collectors Must Prove
When you demand validation of a private parking debt, the collector should provide:
- Documentation from the original parking company showing the specific violation
- Evidence that your vehicle was at the location (typically an LPR photo)
- Proof that signage was posted with the terms and fine amount
- The contractual basis for the charge (how you agreed to the terms)
- An itemized accounting of the amount owed
- Authorization showing the collector has the right to collect on behalf of the parking company
In practice, many collectors send back a form letter with a copy of the original notice. This is often insufficient validation, and you can challenge it further.
What Collectors Cannot Do
The FDCPA prohibits debt collectors from:
- Threatening arrest or criminal prosecution — private parking debt is a civil matter, never criminal
- Calling before 8 AM or after 9 PM in your time zone
- Contacting you at work if you tell them your employer disapproves
- Using abusive, profane, or threatening language
- Misrepresenting the debt or their authority (such as implying they are a government agency or law firm when they are not)
- Adding unauthorized fees or inflating the amount beyond what is owed
- Continuing collection during the 30-day validation period if you have requested validation
- Reporting unverified debt to credit bureaus
Template: Debt Validation Demand Letter
Here is template language you can adapt for your own validation letter. Send this via certified mail with return receipt requested within 30 days of the collector's first contact:
[YOUR NAME]
[YOUR ADDRESS]
[DATE]
[COLLECTIONS AGENCY NAME]
[COLLECTIONS AGENCY ADDRESS]
Re: Account/Reference # [NUMBER FROM THEIR LETTER]
To Whom It May Concern:
I am writing in response to your letter dated [DATE OF THEIR LETTER] regarding an alleged debt of $[AMOUNT] from [PARKING COMPANY NAME].
Pursuant to my rights under the Fair Debt Collection Practices Act, 15 U.S.C. § 1692g, I am requesting validation of this debt. Please provide the following:
1. Documentation proving I owe this specific debt and the amount is correct
2. A copy of any contract or agreement bearing my signature
3. Photographic evidence that my vehicle was at the location in question
4. Documentation of signage at the location showing the posted terms and fine amount
5. Proof of your authorization to collect on behalf of the original creditor
6. A complete accounting of the amount claimed, including any fees added
Until you provide this validation, you must cease all collection activity on this account as required by 15 U.S.C. § 1692g(b). Any continued collection activity or credit reporting prior to validation constitutes a violation of the FDCPA.
Please note that this letter is not an acknowledgment of the alleged debt.
Sincerely,
[YOUR NAME]
What Happens After You Send It
After you send a validation demand, one of three things typically happens:
- The collector validates: They send documentation supporting the debt. Review it carefully. If the validation is weak (just a copy of the original notice), you can challenge it further or file a CFPB complaint.
- The collector goes silent: Many collectors, especially for small parking debts, decide the account isn't worth pursuing once they receive a validation demand. The account may simply be closed or returned to the parking company.
- The collector violates the FDCPA: If they continue collection during the validation period, report to credit bureaus without validating, or use prohibited tactics, you may have grounds for an FDCPA lawsuit with statutory damages of up to $1,000 per violation plus attorney fees.
Using the FDCPA With Other Protections
The FDCPA works best as part of a multi-layered response:
- FDCPA + FCRA: If the debt appears on your credit report, dispute it with the credit bureaus under 15 U.S.C. § 1681i. The bureau must investigate within 30 days.
- FDCPA + State AG complaint: Filing a complaint with your state Attorney General creates an official record and can trigger enforcement action against the company.
- FDCPA + CFPB complaint: The Consumer Financial Protection Bureau tracks debt collection complaints and can take action against collectors who violate federal law.