Posted by Income Taxes and Bookkeeping LLC

The Protection Offered by the Fair Debt Act Collection Practice

The Protection Offered by the Fair Debt Act Collection Practice

Unknown to many people who feel helpless due to constant harassment from debt collectors, they are more powerful than they know. Simple knowledge of your rights and how to use them is what you need.

Fair Debt Collection Practice (FDCP) is a law that guides the operation of third-party debt collectors. Such law protects consumers from constant harassment and other harmful practices like threats, late-night calling, and coming after you for wrong debts. 

When you know your rights, dealing with a debt collector will be easy. As a result, this article will discuss some ways in which the FDCP protects you.

  1. You are in charge of communication with debtors.

In other words, you have the power to restrict how and when third-party debt collectors get in touch with you. You can bar them from calling you at odd hours or places. Also, they cannot inform others about your debt. The implication of these is that debt collector:

  • Are barred from contacting you between 9 pm and 8 am

  • Must not contact you at work once you forbid it

  • Cannot relay your debt to others like families, friends and employers

  • Must not contact you if you request it

However, don't forget that a debt will not disappear all because you barred communication from the collector. The debt collector might sue you for payment, and your wages could be garnished.

  1. Protecting from Abusive Practice

The FDCP Act bars debtors from engaging in any abusive act for debt collection. There is more to harassment than repeatedly asking you for money. It is what they do to coerce you to do something that you won't want to do. 

However, debt collectors cannot:

  • Use abusive language

  • Use violence or threaten you

  • Call you more than once a day for the debt

  • List your debt for the public 

  • Call you for payment without identifying themselves as debt collectors

Ensure to have a log of such abusive practice and file a complaint about such violation.

  1. Debt Collectors Must be Honest

Based on the FDCP, debt collectors must not use any deceptive means to collect a debt. In other words, they cannot misinterpret their actions and intentions. As a result, they cannot misinterpret

  • Your entire debt amount 

  • If it is way after the statute of limitations

  • And disguise themselves as another firm, authority figure or professional

Debt collectors must answer all questions honestly, even though they can choose not to. 

  1. No Unfair Practices

Alongside the fact that they must communicate truthfully, FDCP regulates the behavior of debt collectors. As a result, they are barred from:

  • Acquiring or threatening to take your property if not allowed

  • Collect more than the debt, including fees and interest

  • Require payment by post dated checks 

Don’t postdate any check to debt collectors as they might deposit such checks before time. File a complaint against any collector who threatens to take your property

  1. Collectors Need to Validate Your Debt

It is required by law that debt collectors prove that you indeed owe any debt you are trying to collect. As a result, there must be a validation letter. You also can ask for a verification letter for more information which they must provide. Such letter must  be available to you within five days which should contain:

  • The debt amount

  • The name of your creditor

  • An assumption statement that the collector believes that such debt is valid, except you dispute it in 30 days

  • A statement that if you need more info about the actual creditor, the collector needs to provide such information.

As a result, endeavor you don't act on ant debt unless you gather much info and ensure the debt is indeed yours.



Income Taxes and Bookkeeping LLC
Contact Member