Fair Debt Collection Practices Act (FDCPA)

Fair Debt Collection Practices Act (FDCPA) summary:

• The Fair Debt Collection Practices Act (FDCPA) outlines what debt collectors can and can't do when attempting to collect a debt. 

• You have certain rights under the FDCPA, including the right to dispute debts if you don't believe you owe them. 

• You can sue a debt collector if you believe they've violated your FDCPA rights.

Fair Debt Collection Practices Act (FDCPA) definition and meaning

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers against abusive, deceptive, or unfair debt collection practices. The FDCPA, which was enacted in 1978, defines:

• Who is (and isn't) a debt collector

• Prohibited debt collection practices

• Your rights as a consumer when dealing with debt collectors

The Federal Trade Commission (FTC) is the government agency that enforces the FDCPA. 

Key concept: The FDCPA is a federal law that protects consumers from debt collectors.

More on the Fair Debt Collection Practices Act (FDCPA)

When debts go unpaid, you might get a phone call or a letter from a debt collector to request payment. It's perfectly legal for a debt collector to contact you about a debt, but there are limits to what they can and can't do or say. The Fair Debt Collection Practices Act (FDCPA) is the law that defines those limits. 

The FDCPA protects people who owe debts from unethical and abusive practices. If you have personal debts, like credit cards, student loans, or a mortgage, the FDCPA is there to make sure debt collectors toe the line when they contact you. 

The FDCPA doesn’t apply to original creditors, only debt collectors. But your state may have its own laws that apply to original creditors.

Key features of the Fair Debt Collection Practices Act (FDCPA)

The FDCPA is a comprehensive federal law. It ensures that you’re treated fairly and that debt collectors don’t bully you, while still allowing legitimate debt collection to happen. It's good to know where the boundaries are so you can protect your rights. 

FDCPA and communications

The FDCPA is clear about how and when a debt collector is allowed to communicate with a debtor or third parties associated with the debtor. Here's what the law says about communications:

• Debt collectors can contact you by phone, email, snail mail, text, or private message on social media but they can't do so at unusual times. Typically, that means they need to limit their contact to the hours between 8 AM and 9 PM.

• A debt collector can't contact you at work if they have reason to believe your employer doesn't allow communications on the clock. If you tell them you can’t get calls at work, they need to stop calling you there.

• If you've hired a debt attorney and a debt collector is aware of this, they can only contact you through your attorney (unless your attorney agrees they can contact you directly). 

• Debt collectors can't talk to anyone else about your debt, except your spouse. But they can ask your family members for your contact information. 

How can you make debt collectors leave you alone? The FDCPA gives you the right to ask a debt collector to cut contact. If you send a cease and desist letter they can't reach out again unless it's to notify you that the collection effort has stopped, or that they’re suing you. 

FDCPA and prohibited practices

The FDCPA outlines three categories of behavior debt collectors must avoid: harassing or abusive practices, false or misleading representations, and unfair practices. The FDCPA says that debt collectors can't:

• Threaten you with violence or criminal action to get you to pay a debt

• Use abusive language when they talk to you

• Annoy, abuse, or harass you with repeated phone calls

• Make false representations about themselves when they contact you

• Falsely represent the details of the debt they claim you owe

• Suggest that they're an attorney or a member of law enforcement

• Threaten a debt lawsuit if they don't actually plan to sue you

• Imply that you've committed a crime because you haven't paid a debt

• Fail to disclose in any communications that they're a debt collector and the communication is an attempt to collect a debt

• Use a postcard to contact you about a debt

• Collect interest, fees, or other charges not authorized by the original debt agreement or the law

Your rights under the FDCPA

You have some important rights under the FDCPA, starting with the right to send a debt validation letter. This letter requires a debt collector to give you certain information about the debt, which includes:

• The amount

• The name of the creditor you owe

• A notice that explains that you have 30 days to dispute the debt if you don't believe it's yours

• A notice of your right to request information about the original creditor within 30 days

If you don't think the debt is yours, you have the right to dispute it. The debt collector must investigate, and while a dispute is in progress, they can't take any collection actions against you. 

You also have the right to sue a debt collector who violates the FDCPA. If you win your case, you could get punitive damages, up to $1,000, plus court costs and attorney's fees, and any actual damages you experienced as a result of the violation.