Fair Debt Collection Practices Act

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What is FDCPA?

FDCPA stands for the Fair Debt Collection Practices Act. As a public service, the Federal Trade Commission (FTC) prepared this law to limit the behavior and actions of the Debt collectors. This law is only applicable to third-party Debt Collectors. The Federal Trade Commission amended this act in 2010. It restricting the methods as well as the number of times the collector can contact the debtor. The Fair Debt Collection Practices Act does not protect the borrowers from those who are attempting to collect the personal debt. This law is only applicable to the third-party agencies that took the contract of collecting debts from the borrower.

FDCPA Violation

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The FDCPA prohibits the following practices while attempting to collect the debts:

  • Timings for Tele Contact: Contact duration under the act is fixed from 8:00 a.m. to 9:00 p.m. according to the local time.
  • Disturbing Consumer’s Credit report by reporting false information: If the Collection Agencies try to disturb or threaten the consumer to do so, then they are violating the law.
  • Using Abusive or Profane Language: The Collector shouldn’t use any kind of Verbal abuse while dealing with consumers.
  • Threatening to arrest or take legal action: That option is neither contemplated nor permitted.
  • Claiming for Unjustified Amounts:  Seeking for any amounts is not allowed under the act.
  • Consumer’s Personal Information: Publishing any kind of borrower’s personal information under a lousy debt list should not be done.
  • Ceasing Communication: Trying to communicate by any means other than litigation after a legal notice by the consumer that he wishes for no further communication is not permitted.
  • Engaging any person in tell communication repeatedly: Practising it with intent to abuse, harass, or annoy the person as it violates the law.
  • Contacting the consumer at the place of their Employment: If the Collection agency tries to reach the consumer via their contact of the workplace, then it will also consider being violating FDCPA.

You can read more about the prohibition under FDCPA at this link.

Other Measures For Debt Collection Agencies

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The Fair Debt Collection Practices Act also requires the collector to take the following measures –

  • Provide Verification of the Debt
  • Notify the Borrower and Identify Themselves 
  • Give the necessary details of the original creditor.
  • File a lawsuit in a proper venue
  • Notify the Debtor of their right to dispute the debt under Section 809

Violating the above rules or failing in taking the measure under FDCPA in any means will bring suit against the Debt Collection Authority/Agency as well as the individual debt collector within a year for the damages and attorney fees.

Summary

Under the Fair Debt Collection Practices Act by the Federal Trade Commission, the debt collectors cannot use abusive, deceptive, or unfair practices to recover the debts from the consumer. Debt Collectors should take all the measures and inform the consumer before taking any step. Additionally, the Collection Agency cannot threaten the consumer unless they intend to make the borrowers to court. Violating the FDCPA rule can cause the Debt Collection Company and the individual Debt Collector in a massive mean.

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