Kender Compliance: Consumer Protection Laws & You

The Fair Debt Collection Practices Act (FDCPA) is a federal law in the United States that sets guidelines and regulations for debt collectors. The FDCPA aims to make debt collection a fair and non-aggressive process for consumers. It prohibits debt collectors from using abusive, unfair, or deceptive practices when collecting debts. This includes limiting the times and frequency of contact, and the ways in which they can contact consumers. The FDCPA also requires debt collectors to provide certain information about the debt and their identity.

Original creditors, or first-party collectors, are not directly covered by the FDCPA. However, the prohibited practices outlined in the FDCPA still serve as a general framework for ethical conduct. If an original creditor collects their own debt but uses a different name that suggests it's a third-party debt collector, they are then considered a debt collector subject to the FDCPA.

Other laws that apply to original creditors include the Federal Trade Commission Act (FTC Act) and the Telephone Consumer Protection Act (TCPA). The FTC Act allows the FTC to take action against activities that may harm consumers or businesses through deceptive or unfair conduct. The TCPA regulates the use of robodialers, which are systems that can make telephone calls without human intervention.

The Fair Debt Collection Practices Act (FDCPA) prohibits abusive, unfair, or deceptive practices by debt collectors

The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits abusive, unfair, or deceptive practices by debt collectors. It is the main federal law that governs debt collection practices and aims to protect consumers from abusive and unfair treatment by debt collectors. The FDCPA covers debts that are primarily for personal, family, or household purposes, such as credit card debt, car loans, medical bills, student loans, and mortgages. It does not cover business debts or debts owed to the original creditor or business.

Under the FDCPA, debt collectors are restricted in how and when they can contact consumers. They are prohibited from contacting consumers before 8 a.m. or after 9 p.m., unless the consumer agrees to it. They are also not allowed to contact consumers at their place of work if the consumer has informed them that they are not allowed to receive calls there. Additionally, debt collectors cannot use social media to publicly post about a debt but can contact consumers privately on social media, unless the consumer requests them to stop. Debt collectors must also provide consumers with "validation information" about the debt, including the name of the creditor, the amount owed, and the consumer's rights.

The FDCPA prohibits debt collectors from harassing, oppressing, or abusing consumers. This includes the use of obscene or profane language, threats of violence, and repeated phone calls with the intention of causing annoyance. Debt collectors are also forbidden from making false or misleading statements, such as falsely representing themselves as attorneys or government representatives or misrepresenting the amount owed. They are also prohibited from engaging in unfair practices, such as trying to collect more than the consumer owes or depositing a post-dated check early.

Consumers have the right to sue debt collectors who violate the FDCPA. They can take legal action within one year of the alleged violation and may be awarded damages, including lost wages or medical bills, as well as attorney's fees and court costs.

The FDCPA covers personal, family, and household debts, excluding business debts

The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits what debt collectors can do when attempting to collect certain types of debt. The FDCPA covers personal, family, and household debts, including credit cards, home/auto loans, retail refinancing, and medical bills. It does not cover business debts or debts owed to the original creditor or business.

The FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts. This includes limiting the times and places that debt collectors can contact individuals, such as before 8 a.m. or after 9 p.m., or at a place they know is inconvenient, like the individual's workplace. Debt collectors are also prohibited from using social media to publicly post about a debt, though they can contact individuals privately through social media unless the individual requests that they do not.

Additionally, the FDCPA requires debt collectors to provide certain information to individuals about their debts, including the name of the creditor, the amount of the debt, and instructions on how to repay. Individuals also have the right to request information about the original creditor within 30 days of receiving this notice.

If individuals believe their rights under the FDCPA have been violated, they can file a complaint with their state attorney general's office, the Federal Trade Commission, or the Consumer Financial Protection Bureau. They also have the right to sue a collector in state or federal court within one year of the violation.

Debt collectors cannot contact consumers before 8 a.m. or after 9 p.m. without consent

The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits what debt collectors can do when attempting to collect certain types of debt. The FDCPA prohibits debt collectors from contacting consumers before 8 a.m. or after 9 p.m. without their prior consent. This is to prevent collectors from reaching out at a time or place that is unusual or inconvenient for the consumer.

If a debt collector is aware that a consumer is not permitted to receive personal calls at work, they are not allowed to contact them there. Consumers can also request that collectors do not contact them via email, text message, or social media, and collectors are required to comply with these requests.

Collectors are also prohibited from harassing consumers, either over the phone or through any other form of contact. This includes threatening violence, using obscene or profane language, or repeatedly calling to intentionally annoy or abuse the consumer.

If a consumer is being represented by an attorney for the debt in question, the collector must contact the attorney instead, as long as they are aware of the attorney's name and contact information.

To stop a debt collector from contacting them, consumers can mail a letter to the collection company, requesting that they cease communication. It is recommended to send this letter by certified mail and to pay for a "return receipt" to ensure that the collector has received it.

The FDCPA covers the collection of debts that are primarily for personal, family, or household purposes. It does not cover business debts or debts collected by the original creditor or business that is owed money.

Debt collectors must provide validation information about the debt within five days of first contact

The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits what debt collectors can do when attempting to collect certain types of debt. Under the FDCPA, debt collectors must provide validation information about the debt either when they first communicate with the debtor or within five days of the first contact. This information must be provided in writing, either by mail or electronically.

The validation information must include the name and mailing address of the debt collector, the name of the creditor to whom the debt is owed, and the current amount of the debt, including any interest, fees, payments, and credits. The debtor must also be informed of their right to dispute the debt within 30 days of receiving the validation information and request information about the original creditor.

If the debtor disputes the debt or requests information about the original creditor within the 30-day period, the debt collector must pause collection of the debt until they have adequately responded to the request. The FDCPA also prohibits debt collectors from using abusive, unfair, or deceptive practices when collecting debts. This includes harassing or threatening behaviour, false or misleading representations, and unfair practices such as attempting to collect additional fees or charges on top of the amount owed.

The FDCPA covers the collection of debts that are primarily for personal, family, or household purposes, such as credit card debt, car loans, medical bills, student loans, and mortgages. It does not cover business debts or debts owed to the original creditor or business.

Consumers have the right to dispute a debt within 30 days and request verification

The Fair Debt Collection Practices Act (FDCPA) is a federal law in the United States that sets guidelines and regulations for debt collectors. The FDCPA aims to make debt collection a fair and non-aggressive process for consumers.

Under the FDCPA, consumers have the right to dispute a debt and request verification within 30 days of receiving validation information from a debt collector. This process helps protect consumers from inaccurate or fraudulent debt collection attempts. Here's how it works:

Validation Information

When a debt collector first contacts a consumer, they are required to provide validation information about the debt. This includes the name and address of the debt collector, the name of the creditor, details of the amount owed, and instructions on how to repay the debt. Consumers then have 30 days to respond if they dispute the debt or believe the amount is incorrect.

Disputing the Debt

If a consumer disputes the debt within the 30-day window, they can send a dispute letter to the debt collector. This letter should state that the consumer does not recognise the debt or believes that the amount is incorrect. It is recommended to send this letter via certified mail with a return receipt to ensure the collector receives it. Once the collector receives the dispute letter, they must stop collection attempts until they can provide written verification of the debt.

Verification of the Debt

The debt collector is responsible for providing verification of the debt, which includes the amount of the debt, the date it was incurred, the name and address of the original creditor if different from the current one, and proof that the debt has been sold or assigned to the collection agency. If the required information is not provided, all collection attempts must cease immediately.

Consumer Rights

The FDCPA provides consumers with additional rights and protections during the debt collection process. Debt collectors are not allowed to contact consumers before 8 a.m. or after 9 p.m., and they cannot call more than seven times within a seven-day period. They are also prohibited from contacting consumers at their place of work if the consumer has informed them that personal calls are not allowed. Additionally, debt collectors are not permitted to use harassing, threatening, or abusive language and must provide consumers with privacy and respectful treatment.

By following these procedures, consumers can effectively exercise their right to dispute a debt and request verification within 30 days, ensuring that they are treated fairly and protected from unfair debt collection practices.

Frequently asked questions