FDCPA (Fair Debt Collection Practices Act) can save you from Collection Agencies
The Fair Debt Collection Practices Act or FDCPA was propounded by the Congress to safeguard the interests of the consumers as they are often harassed by collection agencies. Debt Collection Practices constitute an important part of the Consumer Credit Protection Act. To put an end to the irregular activities of the debt collectors in United States of America, the Fair Debt Collection Practices Act is prevalent in all the states of USA.
The FDCPA is a Federal Law meant for the protection of consumers. It encompasses a set of rules governing the activities of collection agencies. The Law also defines the type of information a debt collector is entitled to collect from the debtors. Not only this, the FDCPA also lays the ground for the legal action that can be taken against the the collection agencies.
FDCPA helps consumers by imposing the following limitations on debt collectors
- FDCPA restricts debt collectors from contacting a third party who does not owe money to the creditors. Third party may include employers, neighbors and relatives of the debtor. However, a co-applicant of a debtor can be contacted.
- FDCPA does not allow a debt collector to-
Ruin your credit rating
Refer account to an Attorney
Garnishment or repossession
Extract money by giving false threats - Making phone calls at odd hours is prohibited. A debt collector can make phone calls between 8.00AM to 9.00 PM. They are not allowed to make phone calls at your workplace, if your office policy does not allow it.
- The debt collectors are not allowed to inform the employers about the purpose of the call.
- Use of abusive and insulting language is prohibited as per the FDCPA guidelines.
- Sending letters to debtors that appear to be sent by the Court is also not allowed.
- The debt collectors are not allowed to charge interest rates and fees that were not agreed upon by you or your creditor.
- Making requests for post dated checks with wrong intentions is also prohibited. There are times when debt collectors wait for a check to bounce so that they get an opportunity to prosecute you.
- Filing lawsuit against you in a court which is located away from your place of residence is not preferable.
- FDCPA also envisages that a debt collector is not allowed make false claims that he is representing an Attorney and use any stationery which appears to be a government or an official court communication.
- FDCPA also states that a debt collector cannot collect information about a debtor posing as an official conducting a survey.
- A debtor cannot be threatened of being arrested on failure to repay the debt amount.
Steps to take if a debt collector violates FDCPA
If it is found that a debt collector has violated FDCPA (Fair Debt Collection Practices Act) norms, you have every right to legally penalize the debt collector in a state court or a federal court. You can sue a debt collector within one year from the time he violated FDCPA rules.
If you win the lawsuit, you can make claims for recovering damages you suffered due to debt collectors. In addition to this, you can also make claims amounting to USD$1,000.00. Attorney fees and court costs can also be recovered from the debt collectors if it is found that they have violated the FDCPA guidelines.
Whom to contact in case of FDCPA violation?
In majority of the cases, debtors who have been harassed by debt collectors report irregularities to the Attorney General of the respective states. You can also approach the Federal Trade Commission or FTC to register your complaints.
Related Forum Discussions
- Bayside Asset Recovery violating FDCPA by making threatening calls.
- fdcpa guidelines - what can be done if a collection agency violates fdcpa guidelines?
- Midland Credit Management Inc listed on my credit report
- 877-281-2220 and/or 800-871-7730
- Riscuity threatened to arrest unless payment in full
- 866-608-0400 - Whose number is this?
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11-03-2005, 08:47 AM
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Join Date: Nov 2005
Posts: 4
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FDCPA (Fair Debt Collection Practices Act) can save you from Collection Agencies
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I know that this thread is related to collection agencies, but thought that I'd share this in case it is useful for someone who is still dealing with their original creditor. 
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11-03-2005, 10:16 AM
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Senior Member
Join Date: Mar 2005
Posts: 4,127
Credits: 51,500
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Hi learningfast
Welcome to the forums. Thanks for sharing the knowledge with us. The original creditors are not completely bounded by the laws of the fdcpa but they have to work within the stated guidelines as you said. The original creditors cannot do those activities which are restricted to be done by the collection agencies. But they are not completely required to adhere it as long as they are trying to collect the original debt. Do let us know if you have more to share on it with us. Thanks Roxette __________________
Debtconsolidationcare offers free counseling and help, please avail the services before taking any major decisions.
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06-09-2009, 10:25 AM
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Original Creditor
If the original creditor sells the debt after charge off. Can the entity that purchased the debt be considered the original creditor so as to limit the FDCPA that would apply only to a debt collector
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06-09-2009, 11:01 AM
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no, they cannot. There can only be one "original creditor" for a debt, and that is the creditor that the debtor entered into the original agreement or contract with. After they sell the debt, then someone else comes along and buys it, and it is not unheard of for them to claim they are the OC. Trust me when I tell you, the FDCPA most definitely applies to them, despite their best efforts to claim differently.
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02-05-2010, 11:27 PM
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I recently got contacted by MCM and they are attempting to collect a debt. On my credit report they have two accounts with same account number and two different balances. Then a third account different from the other two, with a large balance. What should I do?
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02-06-2010, 05:10 AM
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Well the larger balance would probably be due to the interest accrual.
Have you sent a DV?
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02-06-2010, 10:02 AM
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self
ihave a creditor who leaves several messages a day, i have been told if the creditor leaves a message, they are not allowed to call again. is this true.
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02-06-2010, 10:05 AM
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It depends on the details...
Is this an original creditor calling, or a collection agency? How many times a day are they calling? __________________
Wulfisms: my blog The four 'no's of dealing with collectors: No validation? No payment. No way! No kidding!! Tellin' you all the zomby troof Here I'm is, the zomby woof [Frank Zappa, 1988 - R.I.P.]
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02-06-2010, 12:13 PM
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In the article above Good Nelly has actually given some incorrect information. A third party collection agency can contact any third party; however, when contacting any third party they can only ask for an address, phone number, and place of employment nothing else. But she is completely incorrect by saying that collection agencies are not able call employers, parents, children, etc. In fact any name you provided to your doctor as an emergency contact comes over to a collection agency and most agencies by policy have to call all number provided in order to reach the debtor. Good Nelly is also incorrect in saying that third party collection agency can not forward accounts to an attorney. In fact most all agencies forward approximately a 100 account a day to attorneys offices. She is correct saying that the collection agency cannot issue garnishment, because that is issued by the attorneys office and the creditor in which took suit againt the debtor in the first place. Although that also depends on state law, such as Texas state law forbids any garnishments on peoples wages. Lastly, to answer VSS428, four messages a day would be a little excessive especially if they are leaving the miranda message which says, 'this is an attempt to collect a debt...." I would definitely contact them about possible harrassment. However if you are getting those message from the original creditor meaning the hospital or doctor then there really is no law banning that. I would recommend contacting them right away to figure out your situation if it is the original creditor hopefully you can set a payment plan with them before your debt is forwarded to a collection agency.
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02-07-2010, 06:26 AM
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bank charges
I have some charges being applied to my account that I did not authorize and I want it stopped. I have called the phone number i have been given all i get is "thank you for calling,goodbye." i will go as far as to close this account out and open an account somewhere else. how do i get this to stop? you can email me at EMAIL REMOVED PER TOS
Last edited by SOAPLADY; 02-07-2010 at 06:34 AM.
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02-07-2010, 06:34 AM
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Have you tried going into your bank and disputing the charges??
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02-07-2010, 09:16 AM
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__________________
Wulfisms: my blog The four 'no's of dealing with collectors: No validation? No payment. No way! No kidding!! Tellin' you all the zomby troof Here I'm is, the zomby woof [Frank Zappa, 1988 - R.I.P.]
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02-07-2010, 09:32 AM
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Join Date: Jan 2010
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If your orginal debt gets sold off to a second party, does that second party have the rights to take you to court?
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