What is the FDCPA?

The Fair Debt Collection Practices Act (FDCPA) is a federal law that governs how debts can be collected.  This can be basic debt collection principles, what companies can say and do to collect as well as being fair and not abusive to those that owe money.  This law helps protect the consumer by giving them a fair chance to repay what they owe and allows them to file a debt collector phone harassment lawsuit to make abusive calls stop.

The FDCPA covers a wide variety of different collections such as medical expenses, credit card debt, mortgages, personal debts and household debts.  This act does not cover debts for any businesses.  Usually, the original creditors are not associated with this act as they usually hire a collection company if payments are past due.  The original loan and creditor typically hire a third party to collect the debts owed.

Debt Collector Calls

When debt collectors contact the individual to collect, there is required information that they have to state about the debt.  Collectors must tell the person the amount due, the name of the creditor, and how the person can get verification or file a dispute for the amount owed.  The debt collectors must either verbally tell the individual this information or send it in written form within five days of the first contact made.

The FDCPA was established in 1977 to prohibit abusive debt collector methods.  Many people reported that debt collectors were harassing them, calling them at all hours and being talked to in an abusive and threatening manner.  This act helps establish fair and stable debt collection practices to protect the consumer.  The act provides guidelines to many businesses today on how to conduct business when collecting debt.  The act lists many prohibited conducts including hours in which they can and cannot call, a failure to cease communication upon request, misrepresentation, profane language, and asking for incorrect amounts to be paid back.

The FDCPA is enforced by the Federal Trade Commission (FTC).  Debt collectors are known to regularly contact those that owe, and the FDCPA sets rules so the consumer will not be contacted in excessive amounts and during odd hours.  Also, collectors cannot call people at work if they ask them not to.  Individuals can ask debt collectors either orally or in writing not to call them at work and the collectors must adhere to the request. If the debt collector continues to call or threaten you, a debt collector phone harassment attorney can make them stop for good, and possibly even help you get compensation for the calls.

The FDCPA was established to help stop as well as prevent debt collector abuse and cruelty.  This act provides guidelines that both debt collectors and consumes must follow.  By both parties being held accountable for their actions and subject to penalties for FDCPA violations, it creates a better working environment for everyone.