The FDCPA Slaps Restrictions on Bill Collectors


The Fair Debt Collection Practices Act (FDCPA) is a section of the US Consumer Credit Protection Act. The intent of the law is to stop debt harassment. It was added to the Consumer Credit Protection Act in 1978. The FDCPA limits how collection agents conduct business and defines consumers' rights in dealing with bill collectors. It also assigns penalties and remedies for when they violate these rights.

First, the FDCPA limits the ways that bill collectors can contact people. It is illegal to call before 8 am or after 9 pm. It is also illegal to call places of employment after being told that the employer doesn't allow it.

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Collection agents must begin their contact with a consumer in a particular way. They must identify themselves as bill collectors and say that they will use any information they obtain in collecting the debt. They must also inform consumers that they have the right to dispute the debt.

Upon receiving notification of the right to dispute the debt, the consumer may request verification of the debt within 30 days. The bill collector's response must contain the amount owed and the creditor's name and address.

There are limits on how bill collection people may communicate with consumers too. They may not misrepresent the amount of the debt or use deception to collect it. In particular, they may not impersonate an attorney or police officer. They may not use profanity, or call repeatedly with intent to annoy, abuse, oppress, or harass. They may not threaten legal action that they don't intend to do, or are not allowed to do.

A consumer who becomes the target of a bill collector may send a written request to cease communication. This request is known as a "drop dead letter." Upon receiving this request, a bill collector is required to stop communicating with the consumer, except through litigation.

Collection agency personnel are restricted in telling third parties about the debt. Specifically, they may only give information about the debt to the consumer's attorney or spouse. They may not contribute consumer information to a "bad debt" blacklist. They also may not communicate through post card or identify a debt collection notice on the envelope.

Sometimes, attorneys get involved in debt collection issues. If a consumer hires a fair debt lawyer or bankruptcy lawyer to represent him, the bill collector must communicate through the lawyer, and not with the consumer directly. If the case does go to court, it must be either where the consumer signed the contract, or where he or she lives.

The Federal Trade Commission has the power to enforce the FDCPA. Also, an individual consumer may file a lawsuit against a debt collector that violates the law. The FDCPA provides for statutory damages of up to $1000, in addition to attorney's fees and actual damages.


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