The Fair Debt Collections Practices Act (FDCPA)

What is the Fair Debt Collections Practices Act (FDCPA)?

The Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq, is a Federal law that protects consumers from unscrupulous tactics and harassment by debt collection agencies.

Consumers are often unaware of their rights when dealing with debt collectors, and Congress passed the FDCPA to encourage fair debt collection and to protect consumers’ rights. The law details the guidelines that collection agencies must abide by and explains the penalties for failing to do so.

Enforced by the Federal Trade Commission, the FDCPA allows consumers to file lawsuits against debt collectors for up to one year after they allegedly violate the law. If the court decides in the consumer’s favor, they can receive up to $1,000 as well as attorney’s fees and court costs.

What is Illegal under the FDCPA?

There is a variety of collection methods prohibited under the FDCPA. They include speaking with 3rd parties about the debt, calling consumers at work if they know their employer disapproves, calling at unreasonable hours and continuing to call consumers with the intention of annoying or harassing them.

Other prohibited acts include using profanity or abusive language, pretending to be someone they are not, such as an attorney or police officer, or threatening to report false information on a consumer’s credit report.

Under the FDCPA, Creditors Are Required to:

Identify themselves as debt collectors and explain they will use any information they receive to collect the debt

Tell you how much money you owe Explain who the original creditor is Let you know that if you do not dispute the debt within thirty days, they will assume the

debt is valid; and Validate the debt if requested to do so

Which Debt Collectors Have to Abide by the FDCPA?

The debt collectors covered under the FDCPA include all debt collection agencies, as well as any attorneys who regularly handle debt collection. In-house collection departments are typically not covered under the FDCPA. For example, if you have a department store credit card and the store contacts you regarding the debt, you are not covered under the FDCPA. However, states have their own laws around in-house collections practices, and state law may apply in this instance.

Types of Debt Covered by the FDCPA

The FDCPA covers individual, family and household debts, including:

Credit card debt Car loans and payments Medical and hospital bills; and First and second mortgages

Consumer Protection Attorneys

Under the FDCPA, if a consumer has retained an attorney and asks a debt collector to refer to the attorney about the debt, the debt collector can no longer contact the consumer directly.

Some consumer advocacy groups believe the FDCPA doesn’t go far enough in protecting people from dishonest and unethical collections practices. Law firms that specialize in Consumer Protection represent consumers and protect their rights under the FDCPA. The attorneys will sometimes file a class action lawsuit against a debt collector if they find multiple consumers have the same grievance.

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This article has been reviewed and approved by Thomas A. Moore, managing attorney Brownstone Law Group, PC. California Bar # 148698. This article is for informational purposes only, does not provide legal advice of any kind or form any type of attorney/client relationship.