Exactly who is trying to get me to pay up? The Fair Debt Collection Practices Act was created in the 1970s and provided a good amount of protections for consumers. There are strict rules and regulations that a debt collector must abide by, and if any of these regulations are violated, there’s a good chance that you could sue that agency. But what about that friend of yours who owes you five dollars? Do you have to grant them thirty days to refute the claim? Clearly, you do not.

The point is that the Fair Debt Collection Practices Act applies to debt collectors, and only debt collectors. Take a look at Morency v. Evanston Northwestern Healthcare Corp, a district court case in Illinois from 1999. In an attempt to collect debt, a hospital issued and sent out pre-collection notices, which is a no-no for third party collectors. But the court ruled that the hospital was merely a creditor, not a collection agency, so the FDCPA did not apply to it.

Courts take many factors into consideration to figure out whether the creditor should be deemed the actual debt collector. A collection agency’s participation in the actual debt collection would have to be minute. Is the collection agency a mere mailing service? Do the letters state if the debtor does not pay the debt will be referred for collection? Is the collection agency paid only for sending letters, rather than commission?

If the collection company does not get any payments or forwards payments to the creditor, that could look suspicious. If a debtor fails to respond to the letter and the collection agency has no further contact with the debtor, or if it does not receive the files of the debtors, they probably aren’t going to be considered debt collection agencies.

The lesson you should walk away with is that it is important that you know who you are paying your money to. It’s always wise to be vigilant when it comes to your finances.

Mallory Megan composes articles on the credit industry, business and finance, and debt collection.