Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits the actions of third-party debt collectors who are trying to collect debts on behalf of another individual or entity. The regulation restricts the ways that collectors can get in touch with debtors, as well as the time of day and amount of times that contact can be made. If the FDCPA is violated, the debtor can sue the debt collection agency along with the individual debt collector for damages and lawyer expenses.
How the Fair Debt Collection Practices Act Works
The FDCPA does not protect debtors from those who are trying to collect a personal debt. If you owe money to the local hardware shop, for instance, and the owner of the shop calls you to collect that debt, that person is not a debt collector under the terms of this act. The FDCPA only applies to third-party debt collectors, such as those that work for a debt collection agency. Credit card debt, medical bills, student loans, mortgages, and other kinds of household debt are covered by the law.
Example of When and How Debt Collectors Can Contact Debtors
The Fair Debt Collection Practices Act specifies that debt collectors can not contact debtors at bothersome times. That means they should not call before 8 a.m. or after 9 p.m. unless the debtor and the collector have made an arrangement for a call to happen outside of the permitted hours. If a debtor tells a collector that they wish to speak after work at 10 p.m., for instance, the collector is permitted to call then. Without an invitation or agreement, however, the debtor can not legally call during that time. Debt collectors can also send letters, emails, or text messages to collect a debt.
Debt collectors can attempt to reach debtors at their homes or offices. However, if a debtor asks a bill collector, either verbally or in writing, to stop calling their place of employment, the collector must not call that number again.
Within five days of contacting a debtor, the debt collector must send a written "validation notice" that includes:
- How much money the debtor owes
- The name of the creditor to whom the debt is owed
- Notice that they have 30 days to contest the debt and what to do
Debtors can also stop collectors from calling their home phones, but they must put the request in a letter and send it to the debt collector. It's a good idea to send the letter by certified mail and pay for a return receipt to make sure that you have evidence that the debt collector got the request.
If a collector does not have contact information for a debtor, they can call relatives, neighbors, or associates of the debtor to try to find the debtor's contact number, but they can not disclose any information concerning the debt, including the fact that they are calling from a debt collection agency. (The collector can only discuss the debt with the debtor or their spouse.) Furthermore, collectors can only call third parties once each.
The regulation makes it illegal for debt collectors to bother debtors in various other ways, including threats of physical harm or incarceration. They also can not lie or use profane or obscene language. Additionally, debt collectors can not threaten to sue a debtor unless they really plan to take that debtor to court.
For More Information About the Fair Debt Collection Practices Act in Fountain Valley, California, Contact Thomas K. McKnight LLP At (800) 466-7507 or Visit Our Website at TKMLLP.Com for a Free Consultation!