G) A creditor means any person who offers or extends credit creating a debt or to whom a debt is owed. However, the term creditor does not include any person who does so. 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). As emphasized in the FTC article, many creditors assume that because they collect their own debts, they are not subject to the FDCPA. However, in many cases where a creditor also collected debts under a different business name, the courts have held that the creditor was also a debt collector as defined by the FDCPA.
It's also important to note that, even if you're a creditor who isn't covered by the FDCPA, you must avoid misleading or unfair collection practices under Section 5 of the FTC Act. The FDCPA defines a creditor as the person or entity that granted you the credit in the first place (in other words, your original lender). Because the FDCPA protects debtors against third-party debt collectors, it doesn't apply to your original creditor or your employees. Because the FDCPA is designed to protect debtors from third-party debt collectors, it doesn't usually apply to original creditors. Congress created the federal Fair Debt Collection Practices Act (FDCPA) to prohibit collectors from using unfair, deceptive, or abusive practices when collecting consumer debts.
If you believe that a debt collector has violated the FDCPA by trying to collect a debt from you, consider talking to an attorney to advise you on your options. However, creditors' “certain lines of conduct” may mean that they are “directly within the jurisdiction of the FDCPA.” Under the FDCPA, a debt collector is generally a third party who is regularly engaged in the business of collecting or attempting to collect debts due to another person. But can creditors also be subject to the terms of the FDCPA? In some cases, creditors may be considered “debt collectors” for purposes of the Act. The Federal Trade Commission (FTC) explains that, under the terms of the Act, debt collectors are covered by the FDCPA, while creditors are not.
Therefore, under the FDCPA, the term debt collector generally includes the debt collection agencies, collection attorneys, and mortgage servicing entities that obtained the account in default. The FDCPA imposes numerous restrictions on what debt collectors can do when collecting debts and gives consumers certain rights and remedies against those who infringe any of its provisions.
