How the Fair Debt Collection Act protects you
The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits what collection agencies can do when collecting certain types of debt.
This article covers how the Fair Debt Collection Practices Act protects you during this process, including any contact you receive from them and their practices reported in person or over the phone to your credit report if it isn’t already there.
Some states have even stricter laws than others about who can collect the money owed.
Ten ways the FDCPA protects you:
Collection agencies will not be able to contact you before 8 am or after 9 pm unless you agree.Collection agencies cannot contact you at work if they know that your employer does not allow such contact.Collection agencies must not harass, threaten or abuse you, including the use of obscene language.Debt collection agencies cannot lie to you, even by falsely posing as lawyers or government representatives.Collection agencies cannot publish your name or address on a public list as someone who owes money.Collection agencies must provide you with written notice within five days of initial contact, specifying the amount of the debt, the creditor to whom it is owed, and your rights under the FDCPA.Collection agencies no longer need to contact you if you send them a letter asking them to do so. However, they may still contact you to tell you that they are ending contact or to inform you of legal action being taken against you.Collection agencies must provide debt verification if you request it within 30 days of their initial contact with you.If you dispute the claim, the collection agency must cease collection work until it can demonstrate that the claim is actually due.If you believe that your rights under the FDCPA have been violated, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or seek legal counsel.
What is collection?
Debt collection is the process of pursuing payments on outstanding debts. This may involve direct contact with the debtor, engaging a collection agency or legal action.
If you have been harassed or abused by a collection agency, or if you believe your rights under the FDCPA have been violated, you can file a complaint with the CFPB. The CFPB will investigate your complaint and may take legal action against the debt collection agency. You can also seek legal aid from a consumer protection lawyer.
What is the CFPB?
The Consumer Financial Protection Agency (CFPB) is a federal agency created in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The mission of the CFPB is to protect consumers from abusive and deceptive financial practices. The CFPB has the power to enforce a number of consumer protection laws, including the FDCPA.
What is Debt Relief?
Debt relief is a term used to describe various methods of dealing with outstanding debt. These include debt consolidation, debt settlement and bankruptcy.
Debt consolidation involves combining several debts into one loan with a lower interest rate. This can be useful for consumers who struggle to make multiple monthly payments.
Debt settlement is an agreement between the debtor and the creditor in which the creditor agrees to accept less than the full amount of the debt. This usually happens when the debtor is unable to repay the full amount of the debt.
If you are struggling with debt, you may want to consider debt counseling. Talk to a financial advisor or consumer protection attorney to learn more about your options.
The FDCPA is a federal law that protects consumers from abuse and harassing debt collection practices. The law establishes a number of rights for consumers approached by debt collection agencies, and now you know how the Fair Debt Collection Practices Act protects you.
If you believe that your rights have been violated, you can file a complaint with the CFPB. You can also seek legal aid from a consumer protection lawyer. If you are struggling with debt, you may want to consider debt counseling. Talk to a financial advisor or consumer protection attorney to learn more about your options.