Fair Debt Collection Practices Act (FDCPA)

The Fair Debt Collection Practices Act (FDCPA) of 1977, to amend the Consumer Credit Protection Act to prohibit abusive practices by debt collectors.

There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.

It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent state action to protect consumers against debt collection abuses.

You are responsible for paying your bills. The law does not erase any legitimate debt you owe. If you fall behind in paying your creditors, or if an error is made on your account, you may be contacted by a debt collector. A debt collector is any person, other than the creditor, who regularly collects debts owed to others, including lawyers who collect debts on a regular basis. Under the Fair Debt Collection Practices Act (FDCPA), you have the right to be treated fairly by debt collectors.

The Fair Debt Collection Practices Act (FDCPA) applies to personal, family, and household debts. This includes money you owe for the purchase of a car, for medical care, or for charge accounts. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting these debts.

Under the Fair Debt Collection Practices Act (FDCPA):

• A debt collector may contact you in person, by mail, telephone, telegram, or fax, but may not contact you at inconvenient times or places, or before 8 a.m. or after 9 p.m. unless you agree.
• A debt collector may not contact you at work if they know your employer disapproves.
• Within five days after you are first contacted by a debt collector, the collector must send you a written notice telling you:
  • The amount of money you owe
  • The name of the creditor to whom you owe the money
  • What action to take if you believe you do not owe the money
• A debt collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
• A debt collector must stop contacting you if you ask them to do so in writing. They may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.
• If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.
• A debt collector may not harass, oppress, or abuse you or any third parties they contact.
• A debt collector may not use threats of violence or harm.
• A debt collector may not publish a list of consumers who refuse to pay their debts (except to a credit bureau).
• A debt collector may not use obscene or profane language, or repeatedly use the telephone to annoy someone.
• A debt collector may not falsely imply that they are attorneys or government representatives, or that they operate or work for a credit bureau. A debt collector may not use a false name. They must identify themselves to you on the phone.
• A debt collector may not lie when collecting debts, such as falsely implying that you have committed a crime.
• A debt collector may not misrepresent the amount of your debt.
• A debt collector may not indicate that papers being sent to you are legal forms when they are not, or indicate that papers being sent to you are not legal forms when they are.
• A debt collector may not send you anything that looks like an official document from a court or government agency when it is not.
• A debt collector may not give false credit information about you to anyone, including a credit bureau.
• A debt collector may not state that you will be arrested if you do not pay your debt.
• A debt collector may not state that they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so.
• A debt collector may not state that actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.
• A debt collector may not collect any amount greater than your debt, unless your state law permits such a charge.
• A debt collector may not deposit a post-dated check prematurely.
• A debt collector may not use deception to make you accept collect calls or pay for telegrams.
• A debt collector may not take or threaten to take your property unless this can be done legally.
• A debt collector may not apply a payment to any debt you believe you do not owe. If you owe more than one debt, any payment you make must be applied to the debt you indicate.
• A debt collector may not contact you by postcard.

Violation of the Law

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney' s fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector' s net worth, whichever is less.

If you are having problems paying your bills, contact your creditors immediately. Try to work out a modified payment plan with them that reduces your payments to a more manageable level. Don't wait until your account has been turned over to a debt collector.

Report any problems you have with a debt collector to your state Attorney General's office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General' s office can help you determine your rights.

For more information on federal credit regulations and consumer rights go to the Federal Trade Commission (FTC) website at www.ftc.gov/credit or www.federalreserve.gov. Some state laws may provide you with additional rights. For information go to the website of the National Association of Attorneys General (NAAG) at www.naag.org.

References:
Federal Trade Commission (FTC)
Facts for Consumers
March 1999
www.ftc.gov

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