Fair Debt Collection practices Act - FDCPA
Debt Collection Practices constitute a very important section of Consumer Credit Protection Act. These are combined together to form an independent law under the Fair Debt Collection Practices Act. What is Fair Debt Collection Practice Act (FDCPA)?The Fair Debt Collection Practices Act (FDCPA) has been implemented by the Congress to protect consumers from being harassed by debt collectors. During the collection of debts, it is often reported that consumers are a victim to different harassing acts by debt collectors. The concern was that the abuses were increasing the filing of personal bankruptcies. In order to prevent such illegal deeds by collectors, the FDCPA is practiced in every state of America. The Act ensures that the collection agencies collect debt payments without adopting unlawful means. Purpose of FDCPAFDCPA is meant and made for governing the conduct and activities of the Debt Collectors. It legalizes the consumer's right to restrict the unethical ways of a debt collector. The purpose of the Act is to provide guidelines for collection agencies while providing protection and solution to debtors. Debts covered under FDCPA: The FDCPA is applicable to personal, family and household debts, including debts for purchase of a car, medical care, retail financing, mortgages and credit cards. FDCPA doesn't apply to business or agricultural debts. Definition of Debt CollectorsNormally it means any person who regularly collects debts owed to others. This also includes lawyers who collect debts regularly. FDCPA identifies any person who using different instruments of interstate commerce including mails or phone calls for collecting debts regularly as Debt Collectors. He/she may do it directly or indirectly. However, FDCPA doesn't restrict the activities of the in-house collection agents. Restrictions Imposed on Debt Collectors by FDCPA:The act provides rules and regulations for certain activities of the debt collectors. 1. Debt collectors may contact you only between 8 a.m. and 9 p.m. 2. Debt collectors may not contact you at work if they know your employer disapproves.
3. They are prohibited from the following actions.
4. Debt collectors must identify themselves to you on the phone. 5. Debt collectors must not contact you when you ask them to do so. You must ideally inform the debt collector about this in writing. Debt collectors are not allowed to collect debts without a proper debt validation letter. Within five days after a debt collector first calls you up, he must send you a written notice stating the amount you owe, the name of the creditor to whom you owe the money and what action you should take in case you don’t owe the money. If you have an attorney, the debt collector may not contact anyone other than your attorney. However, if you do not have an attorney, a debt collector may contact other people, but only to find out where you live and work. Debt collectors are usually prohibited from calling up such permissible third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money. 6. Debt collectors may also not state the following:
Debt Collector's Duties:FDCPA provides you the right to question and check the validity of your loan.
To know more on this read our article on Debt Validation. FDCPA provides the consumers with the independence to sue the collector in state or federal court within one year from the starting date of violation, according to you. If the results are in your favor you get the following as compensation:
In order to restrict the guilty collectors from continuing such unethical
practices, FDCPA imposes statutory damages as penalty against them. This however
encourages the consumers to make the best use of their FDCPA rights. The successful
consumer is also awarded the costs of legal procedures. |








May 10, 2005 at 12:01pm
Thank you,
May 19, 2005 at 2:26am
July 23, 2005 at 10:28pm
August 5, 2005 at 3:35am
August 5, 2005 at 3:59pm
August 14, 2005 at 7:57pm
annoying and harassing phone calls
August 25, 2005 at 3:44pm
September 14, 2005 at 11:18pm
holding checks