The purpose of this subchapter is to eliminate abusive debt collection practices by debt collectors, to ensure that debt collectors refrain from doing so. Under the FDCPA, debt collectors can include collection agencies, debt buyers, and attorneys. Any debt collector covered by the FDCPA who contacts you regarding a debt must provide you with certain information about it. The FDCPA applies to any person or business that charges regularly someone else's debts.
Employees of debt collection and purchase agencies must comply with the FDCPA. Law firms and attorneys must also comply with the FDCPA if they regularly engage in debt collection activities. In practical terms, most debt collectors are covered by the FDCPA. 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 Brooklyn Law Review article, and this section. 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.
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 the original creditors. A creditor is defined as the person or entity that granted you the credit in the first place (the original lender).
Because the FDCPA is designed to protect debtors from third-party debt collectors, it doesn't usually apply to original creditors. 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. The Consumer Financial Protection Bureau (CFPB) debt collection rule clarifies the FDCPA rules about how debt collectors of debts can communicate with debtors.
