Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) offers protection from illegal and unethical debt collection tactics. Other than promoting fair debt collection, its purposes are to eliminate abusive practices in the debt collection industry and to provide consumers with a way to dispute and obtain validation of debts attempted to be collected from them. The FDCPA creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and stipulates penalties for violations of the Act.

According to Wikipedia, the FDCPA prohibits certain types of "abusive and deceptive" conduct when attempting to collect debts, including the following:

• Hours for phone contact - Contacting consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time.


• Contact after being asked to stop - contacting consumers in any way (other than litigation) after receiving written notice that said consumer wishes no further contact or refuses to pay the alleged debt, with certain exceptions, including advising that collection efforts are being terminated or that the collector intends to file a lawsuit or pursue other remedies where permitted.


• Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously: with intent to annoy, abuse, or harass any person at the called number.


• Contacting consumers at their place of employment after having been advised in writing that this is not acceptable.


• Contacting consumer known to be represented by an attorney.


• Contacting consumer after request for validation: contacting the consumer or the pursuing collection efforts by the debt collector after receipt of a consumer's written request for verification of a debt (or for the name and address of the original creditor on a debt) and before the debt collector mails the consumer the requested verification or original creditor's name and address.


• Misrepresentation or deceit: misrepresenting the debt or using deception to collect the debt, including a debt collector's misrepresentation that he or she is an attorney or law enforcement officer.


• Publishing the consumer's name or address on a "bad debt" list.


• Seeking unjustified amounts, which would include demanding any amounts not permitted under an applicable contract or as provided under applicable law.


• Threatening arrest or legal action that is either not permitted or not actually contemplated.


• Abusive or profane language used in the course of communication related to the debt.


• Contact with third parties: revealing or discussing the nature of debts with third parties (other than the consumer's spouse or attorney) or threatening such action.


• Contact by embarrassing media, such as communicating with a consumer regarding a debt by post card, or using any language or symbol, other than the debt collector’s address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.


• Reporting false information on a consumer's credit report or threatening to do so in the process of collection.

Wikipedia also states that The FTC has the authority to administratively enforce the FDCPA using its powers under the Federal Trade Commission Act.

Aggrieved consumers may also file a private lawsuit in a state or federal court to collect damages (actual, statutory, attorney's fee and court-costs) from third-party debt collectors. The FDCPA is a strict liability law, which means that a consumer need not prove actual damages in order to claim statutory damages of up to $1,000 plus reasonable attorney fees if a debt collector is proven to have violated the FDCPA. The collector may, however, escape penalty if it shows that the violation (or violations) was the result of a "bona fide error."

Alternately, if the consumer loses the lawsuit and the court determines that the consumer filed the case in bad faith and for the purposes of harassment, the court may then award attorney's fees to the debt collector.

If you are being harassed by collectors there are things you can do to stop them!

Visit the Federal Trade Commission's website to find out what you can do.

You may also download the PDF version.

Labels: bill collectors, debt collectors, FDCPA