The purpose of this subchapter is to eliminate abusive debt collection practices by debt collectors, to ensure that debt collectors refrain from doing so. The FDCPA only applies to third-party debt collectors, such as those who work for a debt collection agency. The law covers credit card debt, medical bills, student loans, mortgages and other types of family debt. The FTC has gone to court to challenge FDCPA violations committed by companies that used other names to collect their own debts.
For example, LoanPointe, LLC, a Utah-based payday loan company, operated as Ecash or GeteCash. But when it came time to collect those debts, the defendants used the company name LoanPointe. Therefore, in addition to the allegations made under Article 5, the lawsuit accused them of violating the FDCPA, such as illegally garnishing consumers' paychecks and disclosing the existence of debts to people other than the debtor. The FTC asserted, and the trial court agreed, that the defendants' conduct made them “debt collectors” under the second Section 803 prayer (.
The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects debtors against abusive collection tactics by debt collectors. Congress created the FDCPA to prohibit debt collectors from using unfair, deceptive, or abusive practices when collecting consumer debts. The FDCPA generally only applies to third-party debt collectors, not to original creditors. A creditor is defined as the person or entity that granted you the credit in the first place (the original lender).).
The Fair Debt Collection Practices Act is a federal law that governs the practices of debt collection agencies in relation to personal debts, including how and when a debt collector can contact a person regarding money allegedly owed by a person. A person can assert their rights directly against debt collectors who violate the Fair Debt Collection Practices Act (FDCPA) by filing a recovery lawsuit. The FDCPA was amended to clarify that any lawyer who collects debts on behalf of a client is protected by law. Section 803 (of the FDCPA) defines a “debt collector” as “any person who uses any interstate commerce instrument or the mail in any business whose primary purpose is the collection of any debt, or who regularly collects or attempts to collect, directly or indirectly, debts due or overdue or that he claims to owe or owe to another. The FDCPA prohibits third-party debt collectors from contacting a debtor directly if they know that the debtor is represented by an attorney.
Therefore, for those accounts, Green Tree donned the extra “debt collector” hat subject to the FDCPA. The Fair Debt Collection Practices Act (FDCPA) is the primary federal law governing debt collection practices. The Fair Debt Collection Practices Act (FDCPA) considers that a physical visit to your workplace is “to publicize your debt”. However, if a creditor is collecting their own debts and using a different name, the creditor is not exempt from the FDCPA.
First, the FDCPA generally applies only to third-party debt collectors; the legal scheme was not intended to cover the conduct of the original creditor. The FDCPA provides debtors with a means to challenge payment demands and to determine the validity and accuracy of declared debts. Anyone who violates this prohibition will be treated as a debt collector under the FDCPA, even if they would not otherwise qualify to be a debt collector of debts (e.g. the Consumer Financial Protection Bureau (CFPB) Debt Collection Rule clarifies the FDCPA rules on how debt collectors can contact debtors.
However, some states, such as California, have enacted consumer protection laws that provide broader coverage than the FDCPA, and may include the conduct of the original creditor. The Fair Debt Collection Practices Act (FDCPA) applies to individuals or companies that regularly attempt to collect debts due (or are claimed to be owed) or owed to another person.
