Understanding Your Rights Under the Fair Debt Collection Practices Act

What Debts Fall Under the FDCPA?

The FDCPA covers a variety of debts, including those related to personal, family, and household expenses. This encompasses debts incurred from auto loans, medical bills, and credit accounts. It's important to note that business-related debts are not protected under the FDCPA.

Identifying a Debt Collector

A debt collector is an individual or entity that collects debts on behalf of others, excluding the original creditor. This definition was expanded in 1986 to include attorneys who collect debts regularly. Understanding who qualifies as a debt collector can help you recognize when the FDCPA applies.

Permissible Contact Methods and Times

Debt collectors have the right to contact you through various means, such as in person, by mail, phone, or fax. However, they must adhere to reasonable contact hours—typically not before 8 a.m. or after 9 p.m.—unless you've given permission otherwise. Additionally, collectors are prohibited from contacting you at work if they're aware that your employer disapproves.

Your Right to Discontinue Contact

You can request that a debt collector stop contacting you by sending a written notice. After receiving your letter, the collector must cease communication, except to inform you of specific actions they or the creditor plan to take.

Third-Party Contact Limitations

Debt collectors can only contact third parties to obtain your contact information and cannot disclose your debt to them. If you have an attorney, collectors must communicate with them instead.

Mandatory Disclosure of Debt Information

Within five days of initial contact, collectors must provide a written notice detailing the debt amount, the creditor's name, and instructions if you dispute the debt.

Handling Disputed Debts

If you dispute a debt in writing within 30 days of the first contact, the collector must halt collection efforts until they provide proof of the debt.

Prohibited Debt Collection Practices

Debt collectors are forbidden from engaging in harassment, making false statements, or employing unfair practices. This includes:

• Threatening violence or harm
• Publishing lists of non-paying debtors (except to credit bureaus)
• Using obscene language
• Annoying individuals with repeated calls
• Misrepresenting themselves as attorneys or government officials
• Falsely accusing you of a crime
• Misstating the debt amount
• Implying non-legal documents are legal forms
• Threatening illegal actions or those they do not intend to take
• Providing false credit information
• Using deceptive documents or names
• Collecting unauthorized amounts
• Cashing post-dated checks early
• Forcing you to incur charges for communications
• Illegally seizing property
• Contacting you via postcard

Control Over Debt Payment Allocation

When you owe multiple debts, you have the right to specify which debt your payment should apply to. Collectors cannot allocate payments to disputed debts.

Taking Legal Action Against Violations

If you believe a collector has violated the FDCPA, you can sue within one year of the violation. Successful lawsuits may result in compensation for damages, court costs, and attorney's fees. Class action suits are also an option, with potential recovery capped at $500,000 or one percent of the collector's net worth, whichever is less.

Reporting FDCPA Violations

Report any suspected FDCPA violations to your state Attorney General's office and the Federal Trade Commission (FTC). Your state may have additional debt collection laws, and your Attorney General can help you understand your rights.

For further inquiries about the FDCPA or your rights, you can contact the FTC's Correspondence Branch in Washington, D.C. While the FTC does not intervene in individual cases, your reports can help identify patterns of violations that may require commission action.

Interesting Statistics and Facts

• According to the Consumer Financial Protection Bureau (CFPB), debt collection is one of the most complained-about financial services, with over 75,000 complaints received in 2020 alone.
• A survey by the CFPB also found that one in four consumers felt threatened by a debt collector, underscoring the importance of the FDCPA's protections.

For more information on the Fair Debt Collection Practices Act, visit the Federal Trade Commission's website or consult the Consumer Financial Protection Bureau's resources.