What Is The FDCPA?

Decades past, when a consumer fell behind with their payments they often faced harassing creditor phone calls which were often intimidating. Before the inception of the Fair Debt Collection Practices Act (FDCPA), there was very little regulation over creditor phone calls.
Typically bill collectors were paid a nominal hourly wage and receive monthly bonuses based on their ability to collect. Those who were very aggressive often had a greater ability to collect more money for the creditor. This fostered an environment where some bill collectors would attempt deceptive and demeaning practices to increase their income. Some would even pose as an attorney. People on the receiving end of the phone would often feel scared, intimidated, and even abused.

The FDCPA is a federal law, applying in all fifty states, which applies to third party debt collectors. This law was designed to minimize creditor abuse and give a uniform body of laws relating to the debt collections industry. Although abuse still continues today in the collections industry, there is a governing body of laws that offers the debtor recourse.

Below you will find more insightful information.
• Creditors can call you between the hours of 8 a.m. -9 p.m. local time which is generally based on your area code.
• Third party creditors may not call you at your place of employment after being warned not to.
• Third party creditors must inform you that they are a non-attorney employee
• Under the FDCPA a debtor’s situation cannot be revealed to a third party, such as a neighbor or friend.
• A debtor cannot be threatened to be arrested and the collector may not use abusive or profane language.
• A debtor is not legally obligated to speak to their creditors.
For more information please click the link below.

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

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