Definition
The Fair Debt Collection Practices Act (FDCPA) is a federal law in the United States, enacted in 1978, that aims to eliminate abusive debt collection practices by debt collectors. It applies to third-party debt collectors (agencies collecting debts for others) and debt buyers, but generally not to original creditors collecting their own debts. The FDCPA specifies what collectors can and cannot do when collecting certain types of consumer debts, such as credit card debt, medical bills, auto loans, and mortgages. Key provisions include restrictions on communication times and methods, prohibitions against harassment and false statements, requirements for debt validation, and rules for disputing debts. Consumers have the right to sue collectors for violations of the FDCPA.
Frequently Asked Questions
What practices are prohibited under the FDCPA?
Prohibited practices include: calling at unreasonable hours (before 8 a.m. or after 9 p.m. local time), using threats or profane language, misrepresenting the debt amount or their identity, contacting third parties about your debt (with limited exceptions), and contacting you at work if they know your employer prohibits it.
Does the FDCPA apply to original creditors?
Generally, no. The FDCPA primarily applies to third-party debt collectors and debt buyers. However, some states have laws that extend similar protections to cover original creditors.
What should I do if I believe a debt collector has violated the FDCPA?
You can report the violation to the Consumer Financial Protection Bureau (CFPB) and your state Attorney General. You also have the right to sue the debt collector in state or federal court for damages within one year of the violation.
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