subject: The Consumer Has Debt Collection Protection And Rights [print this page] The Fair Debt Collection Practice Act (FDCPA) was a law passed in the United States in 1978. It is a part of the Consumer Credit Protection Act, and works to do away with abusive practices that come about during the collection of consumer debts. The Federal Trade Commission has reported that it receives more complaints about debt collectors than any other sector or type of industry. The FDCPA is an important law and set of guidelines for every consumer to be aware of and to understand their rights with regard to it.
The act establishes certain guidelines under which debt collectors may work, and it defines the rights of consumers when they are interacting with debt collectors. It also describes remedies and penalties for any violations. Coming under areas of prohibited conduct are:
-Specific hours where phone contact is allowed.
-Collectors must cease contact with a debtor who either refuses to pay or says they want no further contact.
-Repeated telephone calling with an intent to annoy or harass.
-Contacting a consumer at his place of work.
-Attempting communication with a consumer who has requested written validation of the debt.
-Any sort of misrepresentation such as pretending to be a lawyer or being deceitful in order to collect a debt.
-The publishing of a consumer's name on bad debt lists.
-Seeking amounts which haven't been justified.
-The threat of legal action or arrest.
-The use of profane language or abusive language.
-Revealing details of a consumer's debt to a third party.
-Using unprivate methods of communications such as post cards.
-The reporting of any false information to credit reporting agencies about the consumer.
The act also requires certain conduct. Consumers are notoriously unaware that collection agencies must identify themselves immediately and say they are attempting to collect a debt. They must also give the name of the original creditor, notify the consumer of their right to contest the debt, and provide written verification of the debt. While these are just some of the many ways in which the consumer is protected, it goes give an idea about how extensive the FDCPA act is and how it works. The act has provided both consumers and credit industry practitioners room for dispute. Many consumers feel that collection agencies are reined in enough in their collection tactics, and that the act has not kept up with the rate of inflation for penalties. On the other hand, the credit collection trade say that the act creates frivolous lawsuits and impedes their ability to collect debts. Regardless, the act is the one important piece of legislation that consumers can rely on, and with many people facing unprecedented debt and collection tactics, it is in their best interest to understand the Fair Debt Collection Practices Act.
by: Vicki Hall
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