The Fair Debt Collection Practices Act (FDCPA) is a US federal law that protects debtors from abusive collection practices. It sets limitations on how creditors can pursue debtors and includes restrictions on contacting debtors, disclosure of debt, and threatening legal action. Violations can be reported to the Attorney General.
The Fair Debt Collection Practices Act (FDCPA) is a federal law passed in the United States in 1978 to protect the rights of debtors. It is codified as a federal statute in the United States Code under 15 USC § 1692. Its many regulations provide protections to those who owe money and set limits on the collection practices employed by creditors.
The FDCPA sets a number of limitations on how a creditor can pursue a debtor to collect an unpaid debt. It was approved to protect consumers from abusive practices that were taking place in the collections sector. While it also protects creditors’ rights when it comes to collecting debts to some extent, it is primarily consumer protection legislation.
According to the rules set out in the Fair Debt Collection Practices Act, creditors cannot contact a person to attempt to collect a debt before 8 PM or after 9 PM, depending on the debtor’s local time. Furthermore, creditors cannot make repeated or harassing phone calls to debtors.
Also, if a consumer makes a formal written request not to be contacted about their debt, the debt collector may not continue to contact them. The debt collector may, however, continue to attempt collection efforts under the Fair Debt Collection Practices Act. He can do this by filing a lawsuit against the consumer and/or by reporting the debtor’s non-payment to major credit reporting agencies.
Other disclosure restrictions also apply in the Fair Debt Collection Practices Act. For example, people who owe money have the right to request proof of debt. They can do this in a debt validation letter. Once a consumer sends a debt validation letter in writing via certified mail, debt collectors must cease communicating until they have sent proof of debt.
A lender also has some other limitations on what they can do. He cannot, for example, send documents that look like legal documents if they are not legal documents, nor can he threaten legal action over the phone unless he sincerely intends to bring legal action against the consumer.
Creditors are not allowed to disclose the debt to other parties. That means they can’t tell a debtor’s neighbors, employers, or family that they have debt. They may, however, contact a neighbor or family member to attempt to obtain contact information to find the debtor.
There are a number of other regulations and limitations under the Fair Debt Collection Practices Act. Consumers who are concerned about their rights under the law can read the full text available on the Federal Trade Commission website. Contacting the Attorney General is also an appropriate course of action for consumers who feel their rights have been violated.
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