Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a Federal law that governs the activities of third-party debt collectors for personal debts.

Few examples of the personal debt are- home loans, auto loans, medical bills, consumer loan, credit card and so.

The FDCPA applies when the third-party debt collectors are collecting the debt on behalf of the original creditor.

The FDCPA does not apply when a collector is collecting a business debt.

The Fair Debt Collection Practices Act (FDCPA) does not protect debtors from those who are attempting to collect a personal debt.

For example, if you owe money to the local hardware store and the owner of the store calls you to collect that debt, he is not a debt collector under the terms of this act.

The Fair deb collection practices act only applies to third-party debt collectors.

Prohibited Collection Practices

When one of your creditors appoints a third-party to collect the debt, the collector is bound to follow the rules of the FDCPA.

If an Attorney is appointed as third-party collector he also bound to follow such rules.

A debt collector cannot do several things under the FDCPA. Such as:

  • A debt collector cannot call you before 8 am or after 9 pm, based on your time zone.
  • Also he cannot call you at work. The collector should aware about that your employer does not allow those phone calls.
  • Moreover he cannot hide his identity on the phone.
  • Similarly a debt collector cannot ignore a written request from you to stop further contract.
  • Debt collector cannot harass you physically or mentally.

Debt collection guidelines

The FDCPA also control how a debt collector should communicate with the debtor and related person with the debtor.

The methods of the communication should be like:

  • Debt collector is prohibited to give information regarding your debt except your spouse or your parent if you are a minor.
  • He cannot communicate via postcard or use any kind of sign on a envelope that indicates you are a debt collector.
  • Secondly, a debt collector can only communicate with the Attorney, If debtor appointed an Attorney.
  • The debt collector cannot use any form of abuse or harassment when attempting to collect the debt.
  • There should be no threat of violence against the debtor.
  • In addition,
    • debt collector cannot use any offensive or profane language while communicating with the debtor via phone or on e-mail.
  • Apart from that,
    • The collection agencies and their collector cannot publish any kind of list of debtor who did not paid a debt except to a consumer bureau.

What if violation of debtor rights under the FDCPA?

Whenever a debtor’s rights were violated by the debt collector, he can file a law suit against the debt collector within one year from the date of the violation.

Furthermore, he could receive up to $ 1,000 in addition to actual damages and the Attorney fees.

You should file a complaint to the Consumer Financial Bureau via online complaint form  or call to (855) 411-2372, if such violation happen with you.

To further help you to file lawsuit regarding this topic, please contact with our learned Attorney/Lawyer.

Source: https://www.investopedia.com/terms/f/fair-debt-collection-practices-act-fdcpa.asp