The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act, or FDCPA, is a federal statute that was passed in 1978 as Title VIII of the Consumer Credit Protection Act. It is designed to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an outlet for disputing and obtaining validation of debt information to ensure the information's accuracy.

The FDCPA creates guidelines for debt collectors that detail how they may conduct business. It also defines the rights of consumers involved with debt collectors and prescribes penalties and remedies for violations of the Act. The FDCPA is frequently used with the Fair Credit Reporting Act.

The FDCPA issues a broad definition of a debt collector. This Act typically only applies to third party debt collectors, which means that internal collectors from an original creditor are not subject to the restrictions. Courts have typically found that debt buyers are covered by the FDCPA even though they collect their own debts.

With time, the definitions and coverage have changed. The FDCPA contains numerous exceptions o the definition of a "debt collector." Attorneys, who were originally explicitly excluded from the definition of a debt collector, have been included since 1986.

The FDCPA's definitions of "consumers" and "debt" specifically restrict the coverage of the act to personal, family, or household transactions. Debts owned by businesses are not subject to the FDCPA.

Some of the actions prohibited as "abusive and deceptive" include:

• Calling after normal hours
• Contact after being asked to stop
• Contacting people at their place of employment
• Misrepresentation or deceit
• Publishing a person's name or address on a "bad debts" list
• Seeking unjustified amounts
• Threatening arrest or legal action

The FDCPA also requires some actions on the part of debt collectors. They must:

• Identify themselves and notify the consumer
• Give the name and address of the original creditor
• Notify the consumer of their right to dispute the debt
• Provide verification of the debt
• File a lawsuit in a proper venue

This list is not exhaustive of either prohibited or required conduct. The Federal Trade Commission has the authority to enforce the FDCPA using its powers under the Federal Trade Commission Act.

Contact a Boston Bankruptcy Lawyer

If you have faced harassment from creditors or are considering filing for bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 to discuss your options.