The FDCPA applies only to the collection of debts incurred by a consumer primarily for personal, family, or household purposes. The Fair Debt Collection Practices Act (FDCPA) is the primary federal law governing debt collection practices. The FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from you. What is the FDCPA? The Fair Debt Collection Practices Act is a federal law that dictates how debt collectors and creditors must proceed to collect the debts.
Collectors and creditors who violate the provisions can be sued for damages. However, the FDCPA does not apply to all types of debt; some types are exempt from the provisions of the FDCPA. Companies need to know which debts are protected by the FDCPA and which are not. Some creditors and others may not realize that certain behavioral guidelines may place them directly within the jurisdiction of the FDCPA.
But what about a debt that is in default? According to the FTC and several federal appellate courts, if the debt was in default when the company obtained it, the company's activities to collect it are covered by the FDCPA. The FDCPA also states, for example, that debt collectors cannot harass or annoy debtors, cannot threaten debtors with arrest, and cannot threaten legal action unless litigation is actually being considered. For more information on the FDCPA, see this article from the University of Berkeley Law Journal, this Brooklyn Law Review article, and this article from St. The Consumer Financial Protection Bureau (CFPB) Debt Collection Rule clarifies the FDCPA's rules for how debt collectors can contact debtors. While the FDCPA covers a variety of different types of debt, they all fall into the same category of debt that consists of debts based on private, family, or household expenses.
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 FDCPA provides debtors with a means to challenge payment demands and to determine the validity and accuracy of declared debts. Any debt collector covered by the FDCPA who contacts you regarding a debt must provide you with certain information about it. The FDCPA creates a structure within which debt collectors can work in an attempt to make debt collection a fair and non-aggressive process.
So, for those accounts, Green Tree put on the extra “debt collector” hat, according to the FDCPA. The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits the actions of outside debt collectors who attempt to collect debts on behalf of another person or entity. In addition, debts associated with a trust relationship or an escrow are not protected by the FDCPA. The FDCPA prohibits a variety of debt collection practices during the processing of the above-mentioned debts, including deception and misrepresentation, harassing phone calls, and threats.
