The Fair Debt Collection Practices Act (FDCPA) is the most important federal law that governs debt collection practices. The FDCPA prohibits debts collection agencies from using unfair or abusive practices.
Different types of debt such as Mortgages, medical debts, credit cards, among other debts for personal, household or family purposes and cover in the FDCPA.
The FDCPA does not include or cover business debts and in general their regulation do not apply to the original creditor to whom you originally became indebted. FDCPA laws do regulate debt collection agencies, lawyers who regularly collect debts and debt buyers.
Restrictions when collecting a debt:
- Time and place. Debt collection agencies are prohibited from contacting you before 8 a.m. or after 9 p.m. Also, if you are not allowed to receive the debt collector’s communications at work, then the debt collector are prohibited from contacting you there.
- Harassment. FDCPA prohibits harassment in collection practices to you or anyone else, in any form of contact.
- Representation by attorney. If a debt collector is notified about you been represented by an attorney, the debt collector must stop contacting you, and contact the attorney instead.
Mandatory information debt collectors must provide you if required
Any debt collector who contacts you is required by law to provide you certain information about the debt they claim. That information includes:
- Name of creditor
- The amount owed
- Name and address of the original creditor, if different from the current creditor
If the debt collector does not provide you this information in the first contact, they are required by law to send you a written notice that includes that information within five days.
