What is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act (FDCPA) is a law originally passed in 1978 in order to protect consumers and regulate the tactics that can be used to by debt collectors. If you have had collection agencies hounding you over a debt, it is imperative that you know what you rights are as outlined in the FDCPA.
What rights are guaranteed to consumers under the Fair Debt Collection Practices Act?
One of the main tools given to consumers in the FDCPA is the right to debt validation. Any time you are contacted about a debt you aren’t certain you owe, you may send a debt validation letter to the collection agency. This letter puts the burden of proof on you creditors in order for them to show you the details about any debt you may owe.
The FDCPA also gives you rights concerning when and how frequently a debt collection agency may contact you and what they are permitted to say when they’re talking to you.
What is prohibited by the FDCPA?
The FDCPA outlines what debt collection agencies can and cannot do. A collection agency cannot do any of the following while trying to collect a debt:
- Attempt to collect more than the debt you owe. Some collection agencies try to tack on additional fees that are not detailed in your original lending agreement, which is illegal.
- Call repeatedly at all times of day. According to the law, creditors cannot call you between 8 a.m. and 9 p.m., or at other times when they know it would be inconvenient for you.
- Use abusive or intimidating language. Making insults, or threats of physical violence over the phone are in violation of the FDCPA.
- Inform outside individuals of the debt you owe. Collection agencies can only share details of your debts with legal advisors, and close family members such as a spouse or parent (if you are under 18). In addition, they may only contact outside sources to try and locate you, but they may only contact the outside source one time.
- Ignore your debt validation request. Creditors may not continue to try and collect on a debt after a debt validation letter is received by them. They must respond to the letter before continuing collection attempts.
What are the primary complaints against collection agencies?
In spite of the protections guaranteed by the FDCPA, collection agencies violate the law regularly. According to the FTC’s annual report on the Fair Debt Collection Practices Act, there were more than 100,000 complaints filed against debt collection agencies. The following were the primary complaints against debt collection agencies:
- Harassing the alleged debtor or others.
- Demanding a larger payment than is permitted by law.
- Threatening dire consequences if the consumer fails to pay.
- Impermissible calls to consumer’s place of employment.
- Revealing alleged debt to third parties.
- Failing to send required consumer notice.
- Failing to verify disputed debts.
- Continuing to contact consumer after receiving “cease communication” notice.
If a collection agency has attempted any of the behaviors listed above with you, they have broken the law and should pay the price. You can inform the FTC of any violations by submitting a complaint. You may also consider contacting your state attorney general’s office.