FAIR DEBT COLLECTION PRACTICES ACT (FDCPA)

The Fair Debt Collections Practices Act sets rules that a collection agency must follow when performing collection services to prevent any violation of law. It can be easy for any collection agency to break the law regarding any legal act, including the Fair Debt Collections Practices Act and the Fair Credit Reporting Act. Going through the information that is provided in the Fair Debt Collections Practices Act can help credit consumers to become more aware of the conduct that is required by a collection agency and prohibited conduct by such agencies that may result in a violation during any collection efforts.

Purpose

The purpose of the Fair Debt Collections Practices Act is to provide regulations for a collection agency and to reduce abusive debt collection practices that were common before the Act was initiated. Previously, available laws and remedies were inadequate in offering the credit consumer protection from such abusive practices and could lead to financial ruin and other devastating results to consumers affected by such unfair and little-regulated practices.

Acquisition of Location Information

When communicating with parties other than the credit consumer to obtain information on the consumer’s location, a representative of the collection agency is to identify himself or herself. The representative will only identify his or her employer if expressly asked.

It is a violation for a representative of the collection agency to notify anyone else, including family members, neighbors, friends, or co-workers, that the consumer owes a debt. The representative may not speak with another person on more than one occasion, except under certain guidelines. When communicating through the mail, the agency cannot use postcards or any symbols or information that indicate the correspondence is from a debt collector or relates to any matter regarding the collection of debt. It is also unlawful for such an agency to communicate with anyone about the debt once notified that the credit consumer is represented by an attorney.

Communication with the Credit Consumer

In addition to halting contact when notified of attorney representation, the Fair Debt Collections Practices Act also provides for allowable times and places in which the agency may make contact for collection efforts to prevent a violation of the law.

It is a violation for such an agency to call a credit consumer during unusual hours, which are between 9:01 pm and 7:59 am local time for the consumer. A representative for an agency also may not call the credit consumer at a place of employment if the consumer notifies the representative that such phone calls are not permitted at work.

Harassment or Abuse

The Fair Debt Collections Practices Act provides the credit consumer from protection against harassment, abuse, or oppression by an agency during the debt collection process. The representative for the agency must tell the consumer of their identity and employer during phone contact.

It is a violation for such an agency to threaten the credit consumer in any manner, such as with fiscal violence, that could bring harm to the consumer or the reputation or property of the consumer. The representative may not use obscene, profane, or abusive language in an effort to abuse, belittle, or offend the credit consumer. The agency may not threaten to sell or publish a consumer debt. Additionally, the agency may not make repetitive phone calls to annoy, abuse, or harass those at that location.

False or Misleading Representation

As provided by the Fair Debt Collections Practices Act, it is a violation for a collection agency to use false or misleading information in any debt collection efforts. The agency may not falsely claim affiliation with the government or its representatives, such as law enforcement, and they may not falsely claim affiliation with a law firm. An agency may not use information that is false, misleading, or deceptive to try to collect on the debt. The agency may not accuse the consumer of a crime based on the debt, and may not threaten the consumer with action that the agency is not authorized to take, such as arrest, imprisonment, loss of property, or loss of wages.

Unfair Practices

The Fair Debt Collections Practices Act also protects credit consumers from unfair practices that could be used by a collection agency, including contacting the consumer by post card. It is a violation for such an agency to collect additional amounts that are not allowable by law or that are not agreed upon in writing in an original agreement. Additionally, the agency may not deposit a post-dated check before the date that is written on the check, nor may the agency make threats to do so during collection efforts.

Validation of Debts

A collection agency has certain responsibilities as provided by the Fair Debt Collections Practices Act that must be adhered to during the debt collection process. Within five days of making initial contact with a credit consumer, the agency must notify the consumer of several key points of information. These include:

The total amount of the debt
The name of the current creditor
Notification that the debt will be assumed by the agency to be a valid debt unless disputed by the consumer in writing within 30 days of notification
Notification that if the consumer disputes and part of the debt in writing, the agency will obtain and provide a copy of such debt from the original creditor or any judgments by mail
By request, the name of the original creditor if it is different than the current creditor

If a consumer disputes any portion of the debt in writing within the allowable time period, it is a violation for the agency collecting on the debt to contact the consumer until after such verification of alleged debt is provided to the consumer.

Fair Debt Collection Practices Act Statutes

<<Consumer Credit Protection Laws

The purpose of the Fair Debt Collections Practices Act (FDCPA) is to regulate third party collectors. The (FDCPA) defines the rules that collection agencies have to follow in order to perform collection services. It is common for collection agencies to violate this law. Common collection agency violations can be used as leverage to remove negative items off of credit reports.