It also protects accredited debt collectors from unfair competition and encourages consistent state action to protect consumers from debt collection abuses. The Fair Debt Collection Practices Act (FDCPA), which took effect on March 20, 1978, 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. The Dodd-Frank Act granted the CFPB regulatory authority under the FDCPA and, with respect to entities under its jurisdiction, granted the authority to monitor and enforce the FDCPA.
The FDCPA illustrates a debt collector as an individual who regularly collects debts owed to others. The FDCPA requires debt validation at the consumer's request. In addition, the law limits the time, frequency and manner in which a debt collector can communicate with a consumer. It also prohibits debt collectors from using any false, misleading or misleading representation.
In particular, consumers are granted the right to take legal action against debt collectors for FDCPA violations within one year of the violation. The primary purpose of the FDCPA is to protect consumers from unfair and abusive collection practices for debts.
