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 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. A creditor can try to collect an outstanding debt in a number of ways.
However, due to “abundant evidence” of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors, (15 U.S. UU., C.) The FDCPA prohibits outside debt collectors from contacting a debtor directly if they know that the debtor is represented by an attorney. In addition, in their first communication with the consumer, debt collectors are required to “notify debtors of their ability to challenge the validity of a debt” and to provide other basic information. Photos c.NCO Financial Systems, Inc.
This includes informing the debtor of their right to ask the collection agency to “validate” the debt. In addition to administrative enforcement (15 U.S. UU., C.) Preliminarily, the FDCPA generally applies only to third-party debt collectors; the legal system was not intended to cover the conduct of the original creditor. 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 in their scope.
The FDCPA allows these types of state laws. For more information on the FDCPA, see this article from the University of Berkeley Law Review, this article from Brooklyn Law Review, and this article from St. The law restricts the ways that collectors can contact debtors, as well as the time of day and the number of times that they can do it. If the FDCPA is violated, the debtor can sue the debt collection company and the individual debt collector for damages and attorney fees.
Are you calling a debt collector? What can it do? What are your rights? The Fair Debt Collection Practices Act (FDCPA) makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when collecting debts. Here are some answers to frequently asked questions about your rights. The FDCPA covers the collection of debts that are primarily intended for personal, family, or household purposes. The FDCPA only applies to third-party debt collectors, such as those who work for a debt collection agency.
The Consumer Financial Protection Bureau (CFPB) debt collection rule clarifies the FDCPA's rules for how debt collectors can contact debtors. However, if a debtor tells a bill collector, either verbally or in writing, to stop calling their place of work, the FDCPA says the collector should not call that number again. Any debt collector covered by the FDCPA who contacts you regarding a debt must provide you with certain information about it. The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits what debt collectors can do when they attempt to collect certain types of debts. The FDCPA also states, for example, that debt collectors cannot harass or annoy debtors, cannot threaten debtors with arrest, and cannot threaten them with legal action unless litigation is actually being considered.
The FDCPA provides debtors with a means to challenge payment demands and to determine the validity and accuracy of declared debts. Perhaps most importantly, however, the FDCPA sets ethical guidelines for collection. of consumer debts. If you believe that a debt collector has violated the FDCPA, you can contact the Consumer Financial Protection Bureau (CFPB) or your state's attorney general.
Here are some examples of what the FDCPA would consider a prohibited practice for collecting a debt...
