Once you are at a certain level of debt, you will likely be assigned one or more debt collectors. If you still have a job and make regular payments, this may not be the worst thing in the world for you. However, there are many stories about how aggressive these collectors can become. It is important to keep track of your finances and pay off your debts as quickly as possible. And, to back you up, you have federal law. In this particular case, the FDCPA.
What is FDCPA?
The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits how debt collectors can collect unpaid debts. The law covers debt collectors and any organization that regularly tries to collect consumer debts on behalf of another business. The FDCPA was originally enacted in 1977 and amended several times since then. The most recent revisions are included in the FDCPA Improvement Act of 1996. This act added a new category of prohibited conduct, required collectors to make specified disclosures to consumers, and authorized private actions against violators of the statute.
How does the FDCPA Protect you from Debt Collectors?
The Fair Debt Collection Practices Act is a federal law that protects consumers from abusive debt collection practices. It was enacted to eliminate the abusive collection tactics used by debt collectors. Essentially, the FDCPA prevents debt collectors from using threats of violence, suing you, garnishing your wages, or using other illegal tactics to collect your debt.
You Control Communication with Debt Collectors
Although the FDCPA prevents debt collectors from calling you before 8 am or after 9 pm, it doesn’t protect you from calls between those times. Debt collectors can call you late at night, but they must adhere to a few rules. Before 10 pm, debt collectors can only call if they’re trying to reach someone other than you, such as a co-signer or your attorney. They also can’t leave messages like “We know where you live” or “Be home when we call back.
You’re Protected from Harassing or Abusive Practices
The FDCPA prohibits debt collectors from harassing or using abusive practices to collect a debt. The FDCPA was created to protect consumers from the illegal practices of debt collectors who use abusive, unfair methods to try to collect a debt. Often, collectors will use threats of violence or lawsuits to scare consumers into paying their debts. Other times, they may try to collect debts that are not owed, or they may tell lies about a debtor’s ability to pay. The FDCPA protects consumers from such abusive and unfair tactics.
Debt Collectors must be Truthful
The Federal Debt Collection Practices Act (FDCPA) makes it illegal for debt collectors to lie. The FDCPA, as added by the Fair Debt Collection Practices Act of 1996, also prohibits debt collectors from using deceptive, unfair, or abusive practices, including harassing or abusing you or misrepresenting themselves for the purpose of their phone call. The FDCPA also requires that a collector provide you with information about the amount of your debt, the name of the creditor to whom you owe money, and how to dispute the debt in writing if you ask for it.
If you are receiving a collection letter or call from a debt collector, it’s important to know your rights and how to protect yourself. It’s important to stay up-to-date on these new rules so that your business is compliant with the law. Here is a quick guide to help you understand the Fair Debt Collection Practices Act (FDCPA) and what you can do if collectors violate these rules. If you have questions or would like more information, please contact us today.