Fair Debt Collection Practice Act
Fair Debt Collection Practice Act: The Federal Trade Commission (FTC), the nation's consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you [ftc.gov]. FDCPA became effective in March 1978; it also protects reputable debt collectors from unfair competition and encourages consistent state action to protect consumers from abuses in debt collection [federalreserve.gov]. In 2013, approximately 30 million individuals had debt in or subject to the collections process averaging approximately $1,400 [consumer finance]. The most common debt that consumers have is medical debt. In addition to medical debt mortgage, auto and student loan debt is increasing in collections.
A debt collector is someone who regularly collects debts owed to others. Debt collectors can consist of collection agencies, lawyers who collect debt on a regular basis, and companies that buy delinquent debts and then try to collect them [ftc.gov]. The types of debts that are covered under the collection act are personal, family, and household debts. The act does not cover debts that are incurred to run a business. The reason behind making an act is because debt collectors were harassing the debtors, which caused a lot of complaints. For instance, collectors would call late at night while the debtor was sleeping, or the collector would show up at the place of the debtor’s employment. As stated in Section 805 titled Communication in Connection with Debt Collection, a debt collector may not communicate with a consumer in connection with the collection of any debt at any unusual time or place that is inconvenient to the consumer and may not call anytime before 8 o’clock antemeridian and after 9 o’clock postmeridian time. Also the collector cannot collect at the consumer’s place of employment if the debt collector knows or has reason to know the consumer’s employer prohibits the
A debt collector is someone who regularly collects debts owed to others. Debt collectors can consist of collection agencies, lawyers who collect debt on a regular basis, and companies that buy delinquent debts and then try to collect them [ftc.gov]. The types of debts that are covered under the collection act are personal, family, and household debts. The act does not cover debts that are incurred to run a business. The reason behind making an act is because debt collectors were harassing the debtors, which caused a lot of complaints. For instance, collectors would call late at night while the debtor was sleeping, or the collector would show up at the place of the debtor’s employment. As stated in Section 805 titled Communication in Connection with Debt Collection, a debt collector may not communicate with a consumer in connection with the collection of any debt at any unusual time or place that is inconvenient to the consumer and may not call anytime before 8 o’clock antemeridian and after 9 o’clock postmeridian time. Also the collector cannot collect at the consumer’s place of employment if the debt collector knows or has reason to know the consumer’s employer prohibits the