The FDCPA defines a debt collector as anyone who regularly collects, or attempts to collect, consumer debt for another person or institution or. 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 your debts. Read more about your rights under of the FDCPA.
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. 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. 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.
FDCPA coverage changes the calculation of compliance, so creditors should know if they are subject to that law.
